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UPDATE 1-Kinder Morgan and Brookfield to sell 25% stake in NGPL

(Adds details on the deal)

Feb 22 (Reuters) - Pipeline operator Kinder Morgan Inc and Brookfield Infrastructure Partners said on Monday they would sell a 25% stake in Natural Gas Pipeline Co (NGPL) to a fund controlled by ArcLight Capital Partners for $830 million.

The value of the minority interest implies an enterprise value of about $5.2 billion for NGPL, representing 11.2 times its 2020 earnings before interest, taxes, depreciation, and amortization, the companies said.

Kinder Morgan and Brookfield Infrastructure said they will each hold a 37.5% interest in NGPL following the close of the deal in the first quarter of 2021, and Kinder Morgan will continue to operate the pipeline.

The proceeds from the deal will be shared equally between the two companies.

With about 9,100 miles of pipeline, NGPL is the largest transporter of natural gas into the high-demand Chicago-area market as well as one of the largest interstate pipeline systems in the country. (Reporting by Ankit Ajmera in Bengaluru; Editing by Shailesh Kuber)

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