US-based Kinder Morgan Energy (KMP) has completed the acquisition of Copano Energy for about $5bn.
The transaction was approved by the Copano unitholders and board of directors of both the companies, and is a unit-for-unit transaction with an exchange ratio of 4563 KMP units per Copano unit.
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Copano has operations in Texas, Oklahoma and Wyoming in the US, and provides services to natural gas producers, such as natural gas gathering, processing, treating and natural gas liquids fractionation.
The company operates about 7,000 miles of pipelines, which has the capacity to produce about 2.7 billion cubic feet of gas per day.
In addition, Copano has nine processing plants, which can process about 1 billion cubic feet of gas per day and 315 million cubic feet per day of treating capacity.
KMP chairman and CEO, Richard D. Kinder, said the acquisition will allow the company to expand midstream services footprint, as well as wider array of services to customers.
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By GlobalData"We will now pursue incremental development in the Eagle Ford Shale play in South Texas, and gain entry into the Barnett Shale Combo in North Texas and the Mississippi Lime and Woodford shales in Oklahoma," Kinder added.
"The transaction is expected to be modestly accretive to KMP in 2013, given the partial year, and about $0.10 per unit accretive for at least the next five years beginning in 2014."
Kinder Morgan Energy Partners operates about 80,000 miles of pipelines and 180 terminals.
The pipelines transport natural gas, gasoline, crude oil and CO2, and terminals store petroleum products and chemicals, as well as handle products such as ethanol, coal, petroleum coke and steel.
KMI has general partner interests in KMP and El Paso Pipeline Partners and limited partner interests in KMP and EPB, as well as shares in Kinder Morgan Management (KMR).
Image: Copano Energy operates about 7,000 miles of pipelines with a capacity to produce about 2.7 billion cubic ft of gas per day. Photo: Courtesy of Roger May.
