El Paso Corporation (NYSE: EP) today announced that it has entered into a definitive agreement to sell its exploration and production business, EP Energy Corporation (EP Energy), for approximately $7.15 billion to affiliates of Apollo Global Management, LLC and Riverstone Holdings, LLC, who are joined by Access Industries, Inc. and other parties. El Paso’s entering into a definitive agreement for the sale of its exploration and production business was contemplated in Kinder Morgan, Inc.’s (NYSE: KMI) previously announced agreement to acquire El Paso Corporation. The sale of EP Energy is dependent upon completion of the Kinder Morgan-El Paso transaction, which is expected to close in the second quarter of 2012, subject to customary regulatory approvals. The sale of EP Energy is also expected to close about the same time as that transaction. As announced in October of 2011, El Paso’s net operating loss carryforwards will largely offset taxes associated with the sale of the exploration and production assets, and thus almost the entirety of the proceeds from this sale will be used to substantially reduce the debt borrowed by KMI to fund the cash portion of its purchase of El Paso. “We are pleased that this pending sale will allow the El Paso exploration and production assets to be kept intact as a single entity,” said Kinder Morgan Chairman and CEO Richard D. Kinder. “We thank the EP Energy employees for their efforts to build a strong company and in facilitating the sales process.” Kinder Morgan, Inc. (NYSE: KMI) is a leading pipeline transportation and energy storage company in North America. It owns an interest in or operates more than 38,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP), one of the largest publicly traded pipeline limited partnerships in America, along with limited partner interest in KMP and Kinder Morgan Management, LLC (NYSE: KMR). It also operates and owns a 20 percent interest in Natural Gas Pipeline Company of America. Combined, KMI, KMP and KMR constitute the largest midstream energy entity in the United States with an enterprise value of approximately $65 billion. For more information please visit www.kindermorgan.com. IMPORTANT ADDITIONAL INFORMATION FILED WITH THE SEC
El Paso Corporation (NYSE:EP) hit a new 52-week high Tuesday as it is currently trading at $30.50, above its previous 52-week high of $30.30 with 862,318 shares traded as of 9:50 a.m. ET. Average volume has been 10.6 million shares over the past 30 days.
El Paso Corporation (NYSE:EP) hit a new 52-week high Monday as it is currently trading at $29.44, above its previous 52-week high of $29.43 with 4.4 million shares traded as of 10:55 a.m. ET. Average volume has been 10.6 million shares over the past 30 days.