- Kinder Morgan (NYSE:KMI) and Brookfield Infrastructure Partners (NYSE:BIP) agree to sell their combined 25% interest in Natural Gas Pipeline Company of America to a fund controlled by ArcLight Capital Partners for $830M.
- The value of the minority interest implies a $5.2B enterprise value for NGPL, or ~11.2x FY 2020 EBITDA.
- Upon closing, Kinder Morgan and Brookfield Infrastructure each will hold a 37.5% interest in NGPL, and KMI will continue to operate the pipeline.
- NGPL, with 9,100 miles of pipeline, is the largest transporter of natural gas into the Chicago-area market, one of the largest interstate pipeline systems in the U.S., and a major transporter of natural gas to large liquefied natural gas export facilities and other markets located on the Texas and Louisiana Gulf Coast.
- Kinder Morgan is one of the few midstream operators with an investment grade rating, and is well-positioned for the continuing increase in natural gas usage, Long Player writes in a bullish analysis posted recently in Seeking Alpha.