El Paso Pipeline Partners LP now holds a 58% stake in Colorado Interstate Gas Co. (CIG) after paying El Paso Corp. $215 million for an additional 18% interest. The pipeline partnership funded the transaction after issuing 12.65 million units, which raised about $217 million. With the additional stake in CIG, the partnership plans to recommend to its board a 6% increase from its 2Q2009 quarterly cash distribution to 35 cents/unit, or $1.40/unit on an annualized basis, beginning with the distribution to be declared and paid in 4Q2009. El Paso Corp. owns a 65% limited partner interest and a 2% general partner interest in the partnership, which it formed to own and operate natural gas transportation pipelines and storage assets. In addition to its stake in CIG, El Paso Pipeline Partners owns Wyoming Interstate Co., an interstate pipeline system serving the Rocky Mountain region, and it owns a 25% interest in Southern Natural Gas Co., which operates in the southeastern region of the United States.
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