Tallgrass Purchases Kinder Morgan Midstream Assets
November 14, 2012
PE-backed Tallgrass Energy Partners has completed its purchase of Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, and a 50% interest in the Rockies Express Pipeline (REX) from Kinder Morgan Energy Partners (NYSE: KMP). The midstream assets were purchased for $1.8 billion in cash. Including the proportionate amount of REX debt, the purchase price is equivalent to a value of $3.3 billion. Tallgrass' backers include Kelso & Company, The Energy & Minerals Group and Magnetar Capital.