Kinder Morgan buying El Paso

Kinder Morgan Inc. and El Paso Corporation announced in October a definitive agreement whereby KMI will acquire all of the outstanding shares of EP in a transaction that will create the largest midstream and the fourth largest energy company in North America with an enterprise value of approximately $94 billion and 80,000 miles of pipelines.

The total purchase price, including the assumption of debt outstanding at El Paso Corporation and including the debt outstanding at El Paso Pipeline Partners, L.P. is approximately $38 billion.

Kinder Morgan’s purchase of El Paso is expected to close in the second quarter of 2012. After the completion of the sale, Kinder Morgan expects to sell El Paso’s oil and gas producing assests to help pay down debt incurred in the transaction.

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