Spectra buys one-third stake in Express-Platte pipeline system

HOUSTON – Kinder Morgan Energy Partners, L.P., Tuesday announced that it has entered into a definitive agreement to sell its one-third interest in the Express-Platte pipeline system to Spectra Energy Corp for approximately $380 million pre tax.  KMP’s joint venture partners in Canada (Ontario Teachers’ Pension Plan Board and Borealis Infrastructure, the infrastructure investment arm of the OMERS pension plan) are also selling their interests in the pipeline system, as Spectra Energy Corp is purchasing 100 per cent of Express-Platte.
The transaction is subject to customary consents and regulatory approvals and is expected to close in the second quarter of 2013.
Express-Platte is a 1,700-mile oil pipeline system connecting Canadian and U.S. producers to refineries in the Rocky Mountain and Midwest regions of the United States.
“This is a win-win transaction for both KMP and Spectra Energy Corp,” said KMP Chairman and CEO Richard D. Kinder. “Spectra Energy Corp is purchasing a good pipeline system. In exchange, KMP will receive a very attractive price. Based on the structure of KMP’s investment with our Express-Platte partners, KMP receives approximately $15 million of cash flow on an annual basis from this investment, which is primarily debenture interest. We will redeploy the proceeds from this sale into various growth projects to further benefit our unitholders. I would like to thank the Express-Platte and Kinder Morgan Canada employees for their hard work and outstanding service in operating this pipeline system.”

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