NextEra Energy Partners (NEP) has closed on a deal to sell its Texas natural gas-pipeline portfolio to Kinder Morgan for $1.815 billion. The agreement involving STX Midstream (NEP’s South Texas assets) was previously disclosed in November 2023.
The natural gas-pipeline portfolio is primarily composed of seven pipelines in Texas, which provide natural gas to Mexico and power producers and municipalities in South Texas. The total 2023 calendar-year adjusted EBITDA for the Texas natural gas-pipeline portfolio is expected to be approximately $180 million, with roughly 70 percent associated with the transmission portion of the portfolio and the remaining 30 percent associated with the midstream pipelines, according to NEP.
NEP received net proceeds of $1.4 billion after extinguishing project-related debt and associated interest rate swaps of approximately $430 million. With the STX
