Kinder Morgan acquires Bakken gas gathering and processing system

The acquisition includes a 270 million ft³pd processing facility and a 104 mile, large-diameter, high-pressure rich gas gathering header pipeline with 350 million ft³pd of capacity connecting supplies from the Williston Basin area to high-demand markets. The gathering and processing system is backed by long-term contracts with commitments from major customers in the basin.

“We’re pleased to be integrating this complementary system with our existing Hiland gas assets to aggregate additional supplies from the Bakken,” said KMI Natural Gas Midstream President Tom Dender. “This strategic acquisition allows us to efficiently expand our footprint and provide incremental transportation and processing services to meet the growing needs of our customers.”

KMI expects the acquisition to be immediately accretive to its shareholders, with a 2025 Adjusted EBITDA multiple of approximately eight times on a full-year basis. Adjusted EBITDA does not include approximately US$20 million of expected cash payments in 2025 that receive deferred revenue recognition. With this transaction, KMI expects to reduce future capital expenditures needed to accommodate the growth of its existing Bakken customers. Initially, KMI plans to fund the transaction with short-term borrowings and cash on hand.

The transaction requires clearance under Hart-Scott-Rodino and is expected to close in 1Q25.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/14012025/kinder-morgan-acquires-bakken-gas-gathering-and-processing-system/