In deciding to focus on their respective core businesses, KinderMorgan and Tom Brown reported that they have entered into adefinitive 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 andprocessing assets in the Big Horn and Wind River Basins of Wyoming,the Piceance Basin in western Colorado, and the Uinta Basin ineastern Utah. Its gathering infrastructure includes about 1,900miles of pipe and moves an estimated 165 MMcf/d of gas. Wildhorsealso owns nine processing facilities with a joint capacity of 234MMcf/d and the Wolfcreek gas storage facility, which has 10 Bcf oftotal gas capacity located in western Colorado.

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

“This transaction allows us to retain a strategic storagefacility and divest assets that did not fit into our core pipelinestrategy,” said Richard D. Kinder, CEO of Kinder Morgan. “Bydivesting these assets that we had placed in discontinuedoperations in the fourth quarter of 1999, we continue to makeprogress on finalizing the divestiture program that we announced ayear ago. We expect to complete that program in the fourth quarterof 2000.”

Jim Lightner, president of Tom Brown, said, “The distribution ofthese assets allows each company to focus on the areas which arecore to their respective businesses. This transaction will enableTom Brown to complete its evaluation of the individual systemsynergies with respect to its producing properties and maximizevalue accordingly.” Alex Steis

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