Kinder Morgan Buys Copano, Extending Energy M&A Spree
The $5B deal will allow Kinder Morgan to expand its midstream footprint
Kinder Morgan Energy Partners LP (NYSE: KMP) is buying Copano Energy LLC (Nasdaq: CPNO) for about $5 billion.
The purchase price includes debt assumption.
Copano, headquartered in Houston, provides natural gas gathering, processing, treating and fractionation services to natural gas providers. The company owns an interest in about 6,900 miles of pipelines and nine processing plants.
The deal would allow Kinder Morgan, a Houston-based pipeline transportation and energy storage company, to expand its midstream footprint.
TPG, Copano’s largest shareholder with a 14 percent stake, has agreed to support the deal. After the deal closes Kinder Morgan will own 100 percent of Eagle Ford Gathering, which provides gathering, transportation nd processing services to gas producers in the Eagle Ford Shale.
Citi acted as Kinder Morgan’s financial adviser, while Weil Gotshal & Manges and Bracewell & Giuliani acted as legal counsel. Copano tapped financial advisers Barclays Capital Inc. and Jefferies & Co. Inc., and Wachtell Lipton Rosen & Katz to handle legal matters. Vinson & Elkins advised TPG on the deal.
In August, Kinder Morgan agreed to sell of some of its Wyoming assets to Tallgrass Energy Partners LP as part of a deal to secure government approval of its investments in the El Paso Natural Gas pipeline and Tennessee Gas Pipeline.
Other recent energy deals include Global Partners LP’s (NYSE: GLP) acquisition of a crude oil and ethanol facility in Oregon for $95 million, Frontier Energy Group LLC’s purchase of Canary Wellhead and Vermillion REP SAS' ZaZa Energy Corp. asset buy.
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