Kinder Morgan Buys El Paso For $21 Billion
by: Andrew Schneider, October 17, 2011 7:10:00 pm
“The three companies that are larger are primarily exploration and production companies. This new entity is almost completely an infrastructure company. They move petroleum products. They move natural gas. They move carbon dioxide.”
The acquisition gives Kinder Morgan a footprint in all but four states.
“As the oil and gas business in the country grows with all of these new shale plays, they’ll be able to expand their system at a very low cost.”
Kinder Morgan will pay just over $21 billion in cash and stock for the acquisition. In addition to El Paso’s pipeline network and other assets, it will take on the outstanding debts of both El Paso Corporation and El Paso Pipeline Partners.