HOUSTON – Kinder Morgan, Inc. (NYSE: KMI) announced that Riverstone Investment Group LLC (Riverstone) will become a 50 percent partner in the Utopia Pipeline Project. To acquire its ownership interest, Riverstone agreed to an upfront cash payment provided at closing, consisting of reimbursement to KMI for its 50 percent share of prior capital expenditures related to the project and a payment in excess of capital expenditures to recognize the value created by KMI in developing the project to this stage.
In addition to the acquisition of the existing assets, Riverstone has agreed to fund its share of future capital expenditures necessary to complete construction and commissioning of the pipeline project. The total project cost is estimated to be approximately $500 million (excluding capitalized interest).
Kinder Morgan attorneys involved in the transaction include:
Deputy General Counsel Adam Forman and Deputy General Counsel Alan Cooke, Assistant General Counsel Angela Teer, Assistant General Counsel Daniel Sanborn and Assistant General Counsel Randy Pais, and Vice President of Tax Jeff Utay
Bracewell attorneys involved in the transaction include:
Partners: W. Cleland Dade, Aaron P. Roffwarg, Scott C. Sanders, Rebecca L. Baker, Gregory M. Bopp and Timothy A. Wilkins
Senior Counsel: Amy E. Parker
Associates: Richard W. Chen, Will M. Thanheiser, Lytch T. Gutmann, Aaron N. Carpenter, Kristen A. Wong, Yaniv M. Maman and Jessica M. Monastra