NextEra closes $1.8bn sale of Texas gas pipeline portfolio

Florida-based NextEra Energy Partners has finalised the sale of its Texas natural gas pipeline portfolio (STX Midstream) to US pipeline operator Kinder Morgan for a total of $1.815bn, it said on December 28. The deal was announced in November. 

The divested portfolio comprises seven pipelines primarily catering to natural gas transportation to Mexico and supplying power producers and municipalities in South Texas.

"With the Texas natural gas pipeline portfolio sale complete, the partnership has sufficient proceeds available to address the equity buyouts of the STX Midstream and NEP Renewables II convertible equity portfolio financings," said NextEra CEO John Ketchum. 

Following the receipt of Hart-Scott-Rodino antitrust approval and meeting all remaining closing conditions, NextEra Energy Partners realised net proceeds amounting to $1.4bn. This figure takes into account the settlement of project-related debt and associated interest rate swaps totaling approximately $430mn.

Having already settled the STX Midstream convertible equity portfolio financing, NextEra Energy Partners is now poised to allocate the remaining net proceeds towards the completion of NEP Renewables II buyouts. The stipulated minimum buyout dates for these transactions are set for June 2024 and June 2025, respectively.