El Paso Corp. reported late Feb. 24 it had entered into a definitive agreement to sell its exploration and production business, EP Energy Corp., for $7.15 billion to affiliates of Apollo Global Management LLC and Riverstone Holdings LLC, who are joined by Access Industries Inc. and other parties.
El Paso’s entering into an agreement to divest its E&P business was contemplated in Kinder Morgan Inc.’s announced agreement to acquire El Paso in late 2011 (OGJ Online, Oct. 17, 2011).
The sale of EP Energy is dependent upon completion of the KMI-El Paso transaction, which is expected to close in the second quarter, subject to customary regulatory approvals. The sale of EP Energy is also expected to close about the same time as that transaction.
“We are pleased that this pending sale will allow the El Paso exploration and production assets to be kept intact as a single entity,” said KMI Chairman and Chief Executive Officer Richard D. Kinder.