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Wildhorse's Partners Call it Splits, Divide Assets

Wildhorse's Partners Call it Splits, Divide Assets

In deciding to focus on their respective core businesses, Kinder Morgan and Tom Brown reported that they have entered into a definitive agreement to dissolve their Wildhorse Energy Partners, LLC, joint venture and split the company's assets.

Created in 1996, the partnership is made up of gathering and processing assets in the Big Horn and Wind River Basins of Wyoming, the Piceance Basin in western Colorado, and the Uinta Basin in eastern Utah. Its gathering infrastructure includes about 1,900 miles of pipe and moves an estimated 165 MMcf/d of gas. Wildhorse also owns nine processing facilities with a joint capacity of 234 MMcf/d and the Wolfcreek gas storage facility, which has 10 Bcf of total gas capacity located in western Colorado.

Kinder Morgan will receive the storage facility and a cash payment from the separation, while Tom Brown will take all of the gathering and processing assets. The companies hope to complete the transaction on or before Nov. 30.

"This transaction allows us to retain a strategic storage facility and divest assets that did not fit into our core pipeline strategy," said Richard D. Kinder, CEO of Kinder Morgan. "By divesting these assets that we had placed in discontinued operations in the fourth quarter of 1999, we continue to make progress on finalizing the divestiture program that we announced a year ago. We expect to complete that program in the fourth quarter of 2000."

Jim Lightner, president of Tom Brown, said, "The distribution of these assets allows each company to focus on the areas which are core to their respective businesses. This transaction will enable Tom Brown to complete its evaluation of the individual system synergies with respect to its producing properties and maximize value accordingly." Alex Steis

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