Kinder Morgan divests El Paso’s E&P assets for $7.15B

Affiliates of Apollo Global Management LLC, Riverstone Holdings LLC, Access Industries Inc and other investors, have signed a definitive agreement to acquire all of the oil and gas exploration and production assets of El Paso Corp for approximately $7.15 billion.


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El Paso plans to sell 1,600 boe/d in Powder River Basin. Expected proceeds may be around $130-$160 million.

Scotia Waterous has been retained as the exclusive financial advisor by El Paso Corporation to divest its interests in the House Creek Field area of the Powder River Basin, Wyoming. The assets include oil-weighted production of approximately 1,600 boe/day from the Sussex and Parkman and significant undeveloped Niobrara acreage. The value of the assets put up for sale may be around $130-$160 million based on $80,000-$100,000/boe.

Bids due by late July, 2011.

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The following table shows Scotia Waterous-advised deals since the beginning of 2010.

Source: Derrick Petroleum E&P transactions Database