Kinder Morgan Closes on USD 1.815 Bn Acquisition of NextEra Energy’s South Texas Assets

“We are pleased to add these assets to our natural gas portfolio to serve growing LNG, industrial, Mexico export and power generation demand markets on the US Gulf Coast,” said KMI President of Natural Gas Pipelines Sital Mody. “These assets integrate well with our existing South Texas footprint and extend our direct connectivity in the lean area of the Eagle Ford Basin, allowing us to offer LNG customers greater access to desirable low-nitrogen natural gas supply.”

KMI expects the acquisition to be accretive to its preliminary 2024 budget guidance with the purchase price equal to 8.6 times the 2024 EBITDA and a long-term investment-to-EBITDA multiple of approximately 7.0-7.5 times, inclusive of commercial synergies.

Initially, we plan to fund the transaction with cash on hand and short-term borrowings, increasing our expected Net Debt-to-Adjusted EBITDA ratio for 2024 by approximately 0.1 times after including a full year Adjusted EBITDA contribution from the asset. Expected acquisition EBITDA multiples, Net Debt and Adjusted EBITDA are non-GAAP measures.