Kinder Morgan Announced Key Acquisition in North Dakota

SEATTLE (Oil Monster): Kinder Moran Inc. has chosen to purchase a natural gas collection and processing facility in North Dakota from Outrigger Energy II LLC through its subsidiary Hiland Partners Holdings LLC. The US$640 million deal is anticipated to finalize in the current year's first quarter and needs clearance under Hart-Scott-Rodino.

The transaction includes a 350 million ft3/d high-pressure rich gas collection header pipeline that will convey supplies from the Williston Basin region, as well as a 270 million ft3/d processing facility. Major clients in the basin have already signed long-term contracts with the business.

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KMI expects the acquisition to be immediately accretive to its shareholders. Short-term loans and available funds will be used to finance the transaction. In order to support the expansion of its current Bakken clientele, Kinder Morgan aims to minimize future capital costs.

The company is very happy to include the complementing assets with its current Hiland gas assets, according to Tom Dender, President of KMI Natural Gas Midstream. He noted that the strategic acquisition enables effective footprint expansion and substantially strengthens its processing and transportation services.