Kinder Morgan Energy buying Copano for $3.2 billion
BY Staff and Wire reports
Thursday, January 31, 2013
1/31/13 at 5:35 AM
Kinder Morgan Energy Partners said Tuesday it will acquire the natural gas company Copano Energy for about $3.2 billion in stock, giving the Houston-based energy transportation and storage company more access to oil and gas-rich territory in Oklahoma, Texas and Wyoming.
Including the assumption of debt, the deal between the two Houston-based companies is valued at around $5 billion.
Copano largely serves natural gas producers, doing work in gathering, processing, treating and natural gas liquids fractionation.
"We will be able to pursue incremental development in the Eagle Ford Shale play in south Texas, gain entry into the Barnett Shale Combo in north Texas and the Mississippi Lime and Woodford Shales in Oklahoma," said Kinder Morgan Energy Chairman and CEO Richard Kinder.
Copano has a Tulsa office employing 36 people to oversee its Oklahoma and Rocky Mountain assets. Sharon Robinson, president of that segment, said Kinder Morgan plans to maintain the office and another 120 employees scattered at other Oklahoma field offices. The Houston-based Copano moved into Oklahoma when it bought ScissorTail Energy LLC in 2005.
Kinder Morgan Energy will pay $40.91 per Copano unit, a 24 percent premium to the company's Tuesday closing price of $33.13. Copano has about 90.9 million outstanding shares, according to FactSet.
Kinder said it expects to employ most of Copano's approximately 415 workers.
The boards of both companies have approved the deal, which is expected to close in the third quarter.
Original Print Headline: Kinder makes $3.2B deal for Copano
