Kinder Morgan, Inc. Sale of Terasen Water and Utility Services Closes

HOUSTON, May 22 /PRNewswire-FirstCall/ -- Kinder Morgan, Inc. today announced that its wholly owned subsidiary, Terasen Inc., has received all necessary approvals and that the sale of Terasen Water and Utility Services is now completed. KMI received approximately C$124 million from the sale and will use the proceeds to pay down debt. The company announced the sale in January of this year.

Terasen Water and Utility Services provides water, wastewater and utility services primarily in western Canada. The group that purchased the business was led by CAI Capital Management Co. and includes the existing management team of Terasen Water and Utility Services. The sale does not include CustomerWorks LP, a joint venture owned 30 percent by KMI and 70 percent by Enbridge Inc.

"When we acquired Terasen last year, we noted that the water and utility services business was outside of our core asset base of pipelines and terminals," said Richard D. Kinder, chairman and CEO of KMI. "After conducting a thorough review of these assets, we determined that this sale would be in the best long-term interest of both KMI and Terasen Water and Utility Services."

Kinder Morgan, Inc. is one of the largest energy transportation, storage and distribution companies in North America. It owns an interest in or operates approximately 43,000 miles of pipelines that transport primarily natural gas, crude oil, petroleum products and CO2; more than 150 terminals that store, transfer and handle products like gasoline and coal; and provides natural gas distribution service to over 1.1 million customers. KMI owns the general partner interest of Kinder Morgan Energy Partners , one of the largest publicly traded pipeline limited partnerships in the United States. Combined, the companies have an enterprise value of more than $35 billion.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.