- El Paso Pipeline Partners (EPB) agrees to acquire natural gas assets from Kinder Morgan (KMI) for ~$2B, including ~$1B of debt.
- Ultimately, EPB is acquiring a 50% interest in Ruby Pipeline, 50% interest in Gulf LNG and 47.5% interest in Young Gas Storage.
- EPB, which is purchasing the assets at ~9x 2013 EBITDA, says the deal will be immediately accretive to its earnings; EPB plans to fund most of the purchase via equity or debt issuances and/or borrowings under its revolving credit facility.
- EPB -1.9%, KMI +0.2% AH.
at CNBC.com (Oct 29, 2014)