Kinder Morgan to Buy an Occidental Gas Line
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Kinder Morgan Energy Partners agreed to buy a Texas natural gas pipeline from Occidental Petroleum Corp. for $360 million to expand its U.S. interstate network.
The 2,600-mile system carries gas from south Texas and the Gulf Coast to the Houston area. Kinder Morgan, which leases and operates the system, also agreed to supply Occidental’s Texas chemical plants with about 90 billion cubic feet of gas over five years, the company said.
Los Angeles-based Occidental said it plans to use the money from the sale to reduce debt.
Kinder Morgan Energy, a partnership controlled by Kinder Morgan Inc., said second-quarter net income rose 45% to $104.2 million, or 72 cents a partnership unit, from $71.8 million, or 70 cents, a year earlier.
Kinder Morgan Inc. said its second-quarter profit more than doubled to $49.9 million, or 41 cents a share, from $24.1 million, or 21 cents, a year earlier. The company was expected to earn 38 cents. Revenue fell to $218.8 million from $552 million.
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