Kinder Morgan to sell retail gas ops to GE Energy Financial Services | PostIndependent.com
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Kinder Morgan to sell retail gas ops to GE Energy Financial Services

Kinder Morgan Inc. has announced it will sell its natural gas retail distribution and related operations to GE Energy Financial Services for $710 million plus working capital. Kinder Morgan serves 260,000 customers in Colorado, Nebraska, Wyoming and Hermosillo, Mexico. The transaction is subject to certain closing conditions and regulatory approvals, including approvals from state utility commissions, and is expected to close by the end of the first quarter of 2007. Kinder Morgan’s retail business serves residential, commercial, agricultural and industrial customers through 11,400 miles of distribution and transmission pipelines, underground storage fields, field system lines and related facilities. Upon closing, KMI expects to recognize a book gain from this transaction and will 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 purchased in November 2005. With this transaction, GE Energy Financial Services expands beyond investments in wholesale pipelines and gas services into retail natural gas distribution.GE Energy Financial Services intends to maintain the retail gas distribution business headquarters in Lakewood. The business will adopt a new name to be announced after the transaction closes.


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