Gulf Oil and Gas accountACCOUNT

El Paso Pipeline to Acquire Additional Stake in SNG

Source: www.gulfoilandgas.com 3/7/2011, Location: North America

El Paso Pipeline Partners, L.P. announced that it has agreed to acquire an additional 22-percent interest in Southern Natural Gas Company (SNG) from El Paso Corporation for $587 million. The acquisition will increase El Paso Pipeline Partners' interest in SNG to 82-percent. El Paso Corporation has granted El Paso Pipeline Partners a 45-day option to purchase up to an additional 3-percent interest in SNG at a price of approximately $26.7 million per one percent interest purchased.

"The acquisition of additional interests in SNG continues our momentum from 2010 and allows us to maintain our excellent distribution growth profile," said Jim Yardley, president and chief executive officer for the general partner of El Paso Pipeline Partners. "In addition to providing immediate accretion to our unitholders, this acquisition increases our interest in SNG which is strategically located in the region with the highest expected growth rate for natural gas demand in the country."

El Paso Pipeline Partners expects to finance the transaction in a manner consistent with its current and target capital structure, which may include debt incurred under the partnership's revolving credit facility, the issuance of public securities and the issuance of a promissory note to El Paso Corporation. The transaction is expected to close by the end of March 2011.

Management intends to recommend to the Board of Directors of the general partner an increase in the quarterly cash distribution to $0.46 per unit, or $1.84 per unit on an annualized basis, beginning with the first quarter 2011 distribution, which will be declared and paid in the second quarter 2011. This would represent an increase of 5 percent from the fourth quarter 2010 distribution of $0.44 per unit and an increase of 21 percent above the partnership's first quarter 2010 distribution of $0.38 per unit.

The terms of the transaction were unanimously approved by the Board of Directors of the general partner, El Paso Pipeline GP Company, L.L.C., based in part on the unanimous approval and recommendation of the Board's conflicts committee, which is comprised entirely of independent directors. The conflicts committee engaged Tudor, Pickering, Holt & Co. to act as its independent financial advisor and to render a fairness opinion.

Mergers and Acquisitions News in United States >>

Japan >>  5/15/2019 - Marubeni Corporation (Marubeni”) hereby announces a merger (hereinafter, “this Merger”) of two Marubeni subsidiaries: Marubeni Wireless Communicatio...
Thailand >>  5/15/2019 - Sparrows Group has selected Thai service and supply company J. S. Technical Services Co., Ltd. (JST) to act as their sole agent in the Kingdom. ...

United Kingdom >>  5/15/2019 - Talon Petroleum Limited (Talon) is pleased to advise that it has completed the acquisition of EnCounter Oil Limited. Accordingly, Talon now holds 100%...
United States >>  5/14/2019 - Wellbore Integrity Solutions (WIS), an affiliate of private equity firm Rhone Capital, and Schlumberger jointly announced that they have entered into ...

United Kingdom >>  5/13/2019 - Aqualis ASA (Aqualis) and Braemar Shipping Services plc (Braemar) entered into an agreement whereby Aqualis will acquire three business lines (Adjusti...
Iraq >>  5/9/2019 - Iraq is planning a $53 billion mega project with global energy giants ExxonMobil and PetroChina to use seawater from the Persian Gulf to boost oil pro...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United States Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 |

More News

Related Links

CA US
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.