Con Edison announced an agreement with its partner Crestwood Equity Partners to sell Stagecoach Gas Services, a joint venture between the two companies.
Stagecoach is a natural gas pipeline and storage company in New York and Pennsylvania that links suppliers to markets in the Northeast. Its storage facilities include Stagecoach, Thomas Corners, Steuben and Seneca Lake, and its pipelines include MARC I, North/South and the Twin Tier pipelines.
Through the divestiture, it will be sold to a subsidiary of Kinder Morgan Inc. for $1.225 billion. The proceeds will be split in half between Con Edison and Crestwood to reflect each party’s 50% ownership.
The agreement was signed on May 31.
“Con Edison wants to express its appreciation to Crestwood for being a valuable partner and is gratified an operator the caliber of Kinder Morgan will be the steward of the Stagecoach assets,” said Con Edison CEO Timothy Cawley.
“Through the implementation of our Clean Energy Commitment, Con Edison is leading the transition to the clean energy future that our customers expect and deserve. This transaction is consistent with our strategy to deliver on that future.”
The agreement is subject to two closing periods, the first of which will see the transfer of Stagecoach subsidiaries, valued at $1.195 billion, during the third quarter of 2021.
Crestwood will use the proceeds to repay borrowings under its revolving credit facility, and will use cash flow from the sale for an equity buy-back program.