Kinder Morgan Finalizes $640 Million Purchase of North Dakota Gas Gathering System
(P&GJ) — Kinder Morgan Inc. announced the completion of its $640 million acquisition of a natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC.
RELATED: Kinder Morgan Acquires Gas Gathering, Processing System in Bakken for $640 Million
The deal includes a 270 million cubic feet per day (MMcf/d) processing facility and a 104-mile, high-pressure pipeline with a capacity of 350 MMcf/d. This pipeline connects the Williston Basin’s natural gas supplies to high-demand markets. The system is supported by long-term contracts with major customers in the area.
“We are pleased to have completed this strategic acquisition and to start integrating these assets with our existing Hiland gas footprint,” said Tom Dender, President of KMI Natural Gas Midstream. “This acquisition expands our transportation and processing services, allowing us to meet the growing needs of our customers.”
The acquisition is expected to immediately benefit Kinder Morgan’s shareholders, with a projected 2025 Adjusted EBITDA multiple of about 8 times on a full-year basis. The transaction is also expected to help Kinder Morgan reduce capital expenditures for its existing Bakken customers in the future.
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