Kinder Morgan Buys Tennessee Gas

Purchased assets of Tennessee Gas and dropdown of 50% of El Paso Natural Gas assets.

Kinder Morgan Energy Partners LP (NYSE: KMP), has closed on its previously announced acquisition of 100% of Tennessee Gas Pipeline (NYSE: TGP) and a 50 percent interest in El Paso Natural Gas (EPNG) pipeline from Kinder Morgan, Inc. (NYSE: KMI).

The approximately $6.22 billion transaction allows KMP to more than replace cash flow from certain assets it is divesting pursuant to an agreement KMI reached with the Federal Trade Commission in order to complete the El Paso Corporation acquisition. Kinder Morgan says the combination of the divestitures and the purchase of these assets from KMI will be slightly accretive to its distributable cash flow in 2012 and nicely accretive thereafter.

TGP is a 13,900-mile pipeline system with a design capacity of about 7.5 billion cubic feet (Bcf) per day. It transports natural gas from Louisiana, the Gulf of Mexico and south Texas to the northeastern United States, including the metropolitan areas of New York City and Boston. EPNG is a 10,200-mile pipeline system with a design capacity of about 5.6 Bcf per day. It transports natural gas from the San Juan, Permian and Anadarko basins to California, other western states, Texas and northern Mexico. Combined, TGP and EPNG have more than 200 Bcf of working natural gas storage capacity.

Kinder Morgan Energy Partners, LP is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 29,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc.Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion.