By OGJ editors
HOUSTON, Aug. 15 -- GE Energy Financial Services agreed to buy Kinder Morgan Inc.'s natural gas retail distribution and related operations in Colorado, Nebraska, Wyoming, and Hermosillo, Mexico, for $710 million, plus working capital.
The transaction, expected to close by Apr. 1, 2007, remains subject to conditions and regulatory approvals, including approvals from state utility commissions.
The retail business consists of 11,400 miles of distribution and transmission pipelines, underground storage fields, field system lines, and related facilities. The business will adopt a new name after the closing.
KMI expects to use proceeds from the sale to retire debt and repurchase stock. The sale does not include Terasen Gas, the large British Columbia natural gas utility that KMI bought last year.
With this transaction, GE Energy, Stamford, Conn., expands beyond wholesale pipelines and gas services into retail gas distribution. The retail gas distribution business' headquarters will be maintained in Lakewood, Colo.
