KN Energy to buy Oxy's MidCon unit

KN Energy Inc., Lakewood, Colo., has agreed to acquire Occidental Petroleum Corp.'s MidCon Corp. natural gas transmission and marketing subsidiary for $3.49 billion cash. KN also will assume about $500 million in liabilities, making the transaction worth almost $4 billion. Occidental says that, after taxes and other expenses, the deal will net it about $3.1 billion. And KN will pay Oxy an average $30 million/year for 29 years to lease MidCon's Texas pipeline. KN Energy will finance the transaction using a bank acquisition facility, which it expects to refinance by issuing debt and equity securities. KN expects the deal to accrue to its earnings per share and cash flow ne...

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