The company is selling its Kinder Morgan Interstate Gas Transmission, Casper-Douglas and West Frenchie Draw facilities and the Trailblazer Pipeline to Tallgrass Energy Partners. It will also sell a 50% stake in its Rockies Express Pipeline to Tallgrass.
Including debt assumed by Tallgrass, the deal is worth an estimated $3.3 billion. Kinder Morgan will receive $1.8 billion in cash, Reuters noted.
Shares of Kinder Morgan rose more than 1% in Monday morning trading.
Tallgrass officials said the acquisitions would bolster the company’s regional pipeline assets. If the deal receives Federal Trade Commission approval, it will close in the fourth quarter.
The FTC demanded the sale of certain Kinder Morgan assets in order to approve the company’s $23 billion purchase of El Paso, which was completed earlier this year.