
Kinder Morgan (KMI) has agreed to a $640 million deal for Outrigger Energy II's North Dakota gathering and processing G&P network. (Source: Shutterstock)
Kinder Morgan (KMI) has agreed to a $640 million deal for a North Dakota gathering and processing (G&P) network currently owned by Outrigger Energy II, the company announced Jan. 13.
KMI subsidiary Hiland Partners Holdings LLC will make the purchase, which includes a 270 MMcf/d processing plant and a 104-mile rich gas gathering header pipeline with 350 MMcf/d capacity. The network connects the Williston Basin to KMI markets.
The G&P is backed by long-term contracts and commitments, Kinder Morgan said in its announcement. KMI said the acquisition has an adjusted EBITDA of about 8X on a full-year basis.
KMI intends to fund the transaction with cash-on-hand and short-term borrowings and expects to close the deal by the end of March.
“We’re pleased to be integrating this complementary system with our existing Hiland gas assets to aggregate additional supplies from the Bakken,” said Tom Dender, KMI natural gas midstream president.
Kinder Morgan has been expanding its natural gas footprint nationwide. In December, the firm announced a $1.4 billion FID for the Mississippi Crossing Project, which increased its presence in the Southeast.
Recommended Reading
Hess Midstream Signs Deal to Repurchase $100MM of Class B Units
2025-01-14 - Hess Midstream said the repurchase is expected to result in increased distributable cash flow per Class A share.
Dividends Declared Weeks of Nov. 25, Dec. 2
2024-12-06 - Here is a compilation of dividends declared from select upstream and midstream companies in fourth-quarter 2024.
Dividends Declared Week of Jan. 13
2025-01-17 - With 2024 year-end earnings season underway, here is a compilation of dividends declared from select upstream, midstream and downstream companies.
Dividends Declared the Week of Dec. 9
2024-12-13 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies during the week of Dec. 9.
Dividends Declared Week of Nov. 18
2024-11-22 - Here is a compilation of dividends declared in the week of Nov. 18 from select upstream and service and supply companies for fourth-quarter 2024.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.