Kinder Morgan, Inc. entered into a definitive agreement to acquire South Texas Midstream, LLC from South Texas Midstream Holdings LLC for approximately $1.8 billion.
November 06, 2023
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Kinder Morgan, Inc. (NYSE:KMI) entered into a definitive agreement to acquire South Texas Midstream, LLC from South Texas Midstream Holdings LLC for approximately $1.8 billion on November 6, 2023. The closing of the sale, which is planned to occur in the first half of 2024, is subject to receipt of Hart-Scott-Rodino anti-trust approval, the effectiveness of certain contract amendments and customary closing conditions. Transaction would be funded with cash on hand and short-term borrowings. Upon closing of the Texas natural gas pipeline portfolio sale, NextEra Energy Partners intends to use the net proceeds from the sale to: Pay off the outstanding Texas pipeline portfolio's project-related debt and associated interest rate swaps of approximately $425 million. Complete the $1.1 billion buyout remaining under the NEP Renewables II CEPF by June 2025. Use the remaining proceeds to pay down a portion of the outstanding corporate revolver. The transaction is expected to close in first quarter 2024. The closing of the sale is planned to occur in the first half of 2024.
Wells Fargo Corporate & Investment Banking acted as a financial advisor to South Texas Midstream, LLC. The transaction is expected to close in first quarter 2024. Barclays acted as financial advisor to Nextera. J.P. Morgan acted as financial advisor to Nextera Energy Partners Ventures, LLC. Kevin Peter, David G. Wilhelm, John K. Arnold, Patrick J. Beaton, Derrick Carson, M. Benjamin Cowan, Laura L. Ferguson, Eric Larson, Terry Radney, Jenelle M. Simmons, Elizabeth Guffy and Van M. Jolas of Locke Lord LLP acted as legal advisor to Kinder Morgan. Greg Hill, Niki Roberts, Michele Harrington, Daniel Davidson and Caitlin Piper of Hogan Lovells US LLP acted as legal advisors to NextEra Energy Partners, LP.
Kinder Morgan, Inc. specializes in transporting and storing oil and gas. Net sales (including intragroup) break down by activity as follows:
- transport, processing and storage of natural gas (70.2%);
- transport of refined oil products (13.5%): gasoline, diesel, liquefied natural gas (LNG), etc.;
- transshipment and storage of petroleum products, dry and liquid bulk services (10.3%): fuel, coal, petroleum coke, cement, alumina, salt, chemical products, etc.;
- transport and sale of carbon dioxide (6%). The group also develops crude oil production activity in the Permian Basin in West Texas.
The United States accounts for 99.2% of net sales.
Kinder Morgan, Inc. entered into a definitive agreement to acquire South Texas Midstream, LLC from South Texas Midstream Holdings LLC for approximately $1.8 billion.
KINDER MORGAN, INC. 
