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July 16, 2021

Kinder Morgan to Acquire Renewable Natural Gas Developer Kinetrex Energy

King & Spalding represented Kinder Morgan, Inc. (NYSE: KMI) in connection with its announced agreement to acquire Indianapolis-based Kinetrex Energy from an affiliate of Parallel49 Equity. Kinetrex is the leading supplier of liquefied natural gas (LNG) in the Midwest and a rapidly growing player in producing and supplying renewable natural gas (RNG) under long-term contracts to transportation service providers.

Kinetrex has a 50% interest in the largest RNG facility in Indiana as well as signed commercial agreements to begin construction on three additional landfill-based RNG facilities. Once operational next year, total annual RNG production from the four sites is estimated to be over four billion cubic feet. RNG is derived from abundant renewable sources, including organic waste in landfills, wastewater treatment plants and agricultural operations. By capturing methane produced from the decomposition of organic waste, the RNG production process reduces or eliminates greenhouse gas emissions. Kinetrex’s unique full-service platform provides outstanding value for its customers and host landfills. The transaction requires regulatory approval under Hart-Scott-Rodino and is expected to close in the third quarter of 2021.

Kinder Morgan lawyers involved in the transaction include: Catherine Callaway James, Vice President and General Counsel; Adam Forman, Vice President and Deputy General Counsel; Eric McCord, Vice President and Managing Counsel; Jordan Mintz, Vice President and Chief Tax Officer; and Jeff Utay, Vice President, Tax