El Paso to sell E&P arm in $7.15 billion deal

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.

Steven Poruban

Feb. 27, 2012

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.

About the Author

Steven Poruban

Managing Editor-News

Steven Poruban was hired as staff writer for Oil & Gas Journal in October 1998. Two years later, he was promoted to senior staff writer. In October 2004, he was then promoted to senior editor. He now serves as managing editor-news.

Before working for OGJ, Steven was a reporter for Gas Daily and editor of Gas Transportation Report. He attended Boston University then transferred to and graduated from Ursinus College in Collegeville, Pa., with a BA in English in 1993.