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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 30, 1996
K N ENERGY, INC.
(Exact name of registrant as specified in its charter)
KANSAS 1-6446 48-0290000
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation or organization) Number) Identification No.)
370 VAN GORDON STREET
P. O. BOX 281304
LAKEWOOD, CO 80228-8304
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (303) 989-1740
1
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Item 5. Other Events.
On January 30, 1996 K N Energy, Inc. announced that it had entered
into a Letter of Intent to acquire a major Midwest crude oil pipeline
from Amoco Pipeline Company for conversion to natural gas. Reference
is hereby made to the press release dated January 30, 1996, which is
filed herewith as an exhibit and incorporated herein by this
reference.
Item 7. Financial Statements, Pro-Forma Financial Information and Exhibits.
(a) Financial Statements - None
(b) Pro-Forma Financial Statements - None
(c) Exhibits
1.1 Press release dated January 30, 1996
EXHIBIT INDEX
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Exhibit Number Exhibit Description Page
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1.1 Press release dated January 30, 1996 5
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
K N ENERGY, INC.
Date: February 14, 1996 By: /s/ William S. Garner, Jr.
-------------------------------------
William S. Garner, Jr.
Vice President, General Counsel
and Secretary
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EXHIBIT INDEX
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EXHIBIT NUMBER EXHIBIT DESCRIPTION PAGE
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1.1 Press release dated January 30, 1996 5
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EXHIBIT 1.1
For Immediate Release - January 30, 1996
For more information, financial community please contact Karla Kimrey, Manager
- - Investor Relations at 303-763-3489; media please contact Len Edgerly,
Corporate Communications at 303-763-3371.
K N ENERGY TO DEVELOP MAJOR PIPELINE FROM THE ROCKIES TO THE MIDWEST
LAKEWOOD, CO - K N Energy, Inc. (NYSE-KNE) announced today that it has
reached an agreement to acquire a major midwest crude oil pipeline owned by
Amoco Pipeline Company. K N plans to convert the pipeline for transmission of
natural gas from supply-rich Wyoming to Midwest markets. The 850-mile pipeline
extends from Riverton, Wyoming, southeast through portions of Nebraska,
Colorado and Kansas, entering Missouri just south of Kansas City.
The total net cost of the project, including the purchase price and
costs to convert the pipeline to natural gas service during the next nine to
twelve months, is expected to be less than $150 million. K N Energy
anticipates closing the purchase transaction by the end of the second quarter
1996.
Pipeline conversion and construction of new facilities is expected to
begin immediately thereafter, and the pipeline is expected to be in gas service
by early 1997. The new pipeline currently is subject to jurisdiction by the
Federal Energy Regulatory Commission which will regulate the rates, terms and
conditions of service of the facilities in gas service.
The initial design capacity of 200,000 million British Thermal Units
(MMBtu) may be expanded to 300,000 MMBtu with additional compression. The
pipeline will access more than 5.7 trillion cubic feet (Tcf) of natural gas
reserves in the Wind River Basin of central Wyoming and other producing areas
in Wyoming. Natural gas available for sale in central Wyoming far exceeds
current pipeline capacity in the area, and additional drilling projects are
being planned by various producers.
"K N's strategy in the Rocky Mountain region has been to pursue
opportunities that help unlock the substantial gas supply basins in this
region," said Larry D. Hall, President and Chief Executive Officer of K N
Energy. "This pipeline conversion project gives K N Energy an unprecedented
opportunity to provide cost-effective competition to serve market needs within
and beyond the Company's current service territory. This major addition to the
national interstate gas pipeline grid will provide our existing customers and
potential upstream and downstream customers with new opportunities."
(more)
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KN Energy/2 2 2
"Furthermore, this acquisition reflects K N Energy's ongoing strategy
to balance regulated pipeline projects with the corresponding potential for
greater returns from other unregulated business segments that interface with
the pipeline assets. K N Energy is committed to providing services all along
the route of this new natural gas pipeline connection to the Midwest," Hall
said.
On January 24th, K N announced plans for an expansion of its existing
Wyoming natural gas pipeline capacity. That project, which will accommodate an
additional 47,500 MMBtu per day, is a natural fit with the Amoco pipeline
agreement and will be pursued concurrent to it.
K N Energy is currently evaluating financing alternatives which may
include a combination of long-term debt and equity. The transaction is subject
to Board of Directors approval.
K N Energy is an integrated natural gas services company with
operations in eight states. The services provided include gas gathering,
processing, marketing, storage, transportation and retail gas distribution
services. K N Energy has annual sales exceeding $1 billion and assets of
approximately $1.2 billion.
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