HOUSTON, Jan. 17 - Kinder Morgan, Inc. (NYSE: KMI) today announced that its wholly owned subsidiary, Terasen Inc., has entered into a definitive agreement to sell Terasen Water and Utility Services and its affiliated companies to a consortium for approximately C$125 million (subject to certain purchase price adjustments at closing). Terasen Water and Utility Services provides water, wastewater and utility services primarily in western Canada. The group purchasing the business is being led by CAI Capital Management Co. and includes the existing management team of Terasen Water and Utility Services. The transaction is expected to close by the end of April 2006.
"When we acquired Terasen, we noted that the water and utility services business was outside of our core asset base of pipelines and terminals," said Richard D. Kinder, chairman and CEO of KMI. "After conducting a thorough review of these assets, we believe this sale will be in the best long-term interest of KMI and Terasen Water and Utility Services." Kinder noted that proceeds from the sale will be used to pay down debt. The sale does not include CustomerWorks LP, a joint venture owned 30 percent by KMI and 70 percent by Enbridge Inc.
Kinder Morgan, Inc. is a leading North American energy transportation, storage and distribution company with approximately 40,000 miles of natural gas and products pipelines, 1.1 million natural gas distribution customers and 150 terminals. Kinder Morgan, Inc. owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP), one of the largest publicly traded pipeline limited partnerships in the United States. Combined, the two companies have an enterprise value of over $35 billion.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
