Dropdown

Kinder Morgan Energy Partners LP (KMP) has completed the dropdown of 50% of El Paso Natural Gas Co. LLC (EPNG) and 50% of the former El Paso Midstream assets in Utah and South Texas from Kinder Morgan Inc. in a deal worth nearly $1.66 billion, including $560 million of proportional debt at EPNG. KMP now owns 100% of both EPNG and the midstream assets. The transaction closed on and is effective March 1. KMP purchased the assets at about eight times 2013 earnings. EPNG is a 10,200-mile pipeline with a design capacity of 5.6 Bcf/d. It transports gas from the San Juan, Permian and Anadarko basins to California, other western states, Texas and northern Mexico. The midstream assets include Altamont gathering, processing and treating assets in the Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford Shale in South Texas.