Business
Kinder Morgan Closes on $640 Million Acquisition of a Natural Gas Gathering and Processing System From Outrigger Energy II
HOUSTON, February 18, 2025--KMI closes on $640 million acquisition of a natural gas gathering and processing system from Outrigger Energy II.
About this update from Kinder Morgan, Inc.
[{"type":"text","content":"Acquired assets complementary to existing Hiland gas assets in the Bakken","length":73,"tagName":"p","attribs":{}},{"type":"text","content":"HOUSTON, February 18, 2025--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced that its subsidiary, Hiland Partners Holdings LLC, closed on its previously announced $640 million acquisition of a natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC. The acquisition includes a 270 million cubic feet per day (MMcf/d) processing facility and a 104-mile, large-diameter, high-pressure rich gas gathering header pipeline with 350 MMcf/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.","length":689,"tagName":"p"},{"type":"text","content":""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."","length":339,"tagName":"p"},{"type":"text","content":"KMI expects the acquisition to be immediately accretive to its shareholders, with a 2025 Adjusted EBITDA multiple of approximately 8 times on a full-year basis. Adjusted EBITDA does not include approximately $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.","length":436,"tagName":"p"},{"type":"text","content":"About Kinder Morgan, Inc.","length":25,"tagName":"p"},{"type":"text","content":"Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of the people, communities and businesses we serve. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, 702 Bcf of working natu...