EPB to Purchase Natural Gas Assets from Kinder Morgan, Inc. for Approximately $2 Billion

HOUSTON--(BUSINESS WIRE)--El Paso Pipeline Partners, L.P. (NYSE: EPB), today announced that it will acquire from Kinder Morgan, Inc. (NYSE: KMI) KMI’s 50 percent interest in Ruby Pipeline, 50 percent interest in Gulf LNG and 47.5 percent interest in Young Gas Storage. The transaction value is approximately $2 billion, including $1.012 billion of proportionate debt at Ruby and Gulf LNG, resulting in an equity purchase price of $972 million (consistent with EPB’s budget). The purchase, which is expected to close in May and be effective April 30, 2014, was approved by the independent members of the board of directors of KMI, and by the conflicts committee and the board of directors of EPB’s general partner following the receipt of separate fairness opinions from different investment banks. The company previously announced that KMI would offer to sell (drop down) these assets to EPB.