El Paso secures midstream finance
Private-equity house Kohlberg Kravis Roberts (KKR) is investing around $0.625bn in a partnership with Houston-based El Paso to develop gas-processing plants and pipelines
KKR will invest $125m for 50% of El Paso’s Altamont gas-gathering and processing assets in Utah; and around $0.5bn in future projects including the Marcellus Ethane Pipeline System and the Camino Real Pipeline in the Eagle Ford shale. The move to bring private equity into the mix has answered questions that analysts have asked about El Paso’s ability to boost its midstream assets in the face of liquidity issues without adding debt to its balance sheet. El Paso’s shares rose by 0.2% to $13.83 in afternoon trade on the New York Stock Exchange following the announcement.