Kinder Morgan closes on natural gas acquisition

The acquisition includes a 270 million ft³/d processing facility and a 104 mile, large-diameter, high-pressure rich gas gathering header pipeline with 350 million ft³/d 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 are pleased to have completed this strategic acquisition and to start integrating these assets with our existing Hiland gas footprint,” said KMI Natural Gas Midstream President Tom Dender. “This acquisition expands our transportation and processing services, allowing us 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.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/20022025/kinder-morgan-closes-of-natural-gas-acquisition/