KMP to Acquire Gas Treating Assets

In a transaction making Kinder Morgan Energy Partners LP the largest provider of contract-provided treating plants in the U.S., KMP spends $266 million to acquire the natural gas treating business from Crosstex Energy LP and Crosstex Energy Inc.
The price includes working capital, subject to certain closing adjustments.
KMP is purchasing about 290 amine-treating and dew-point control plants in Texas and Louisiana, with additional facilities in Mississippi, Oklahoma, Arkansas and Kansas.
“We are pleased to have the opportunity and financial strength to grow our company even during difficult economic times,” said Richard D. Kinder, chairman and CEO of KMP. “These fee-based, non-regulated assets produce stable cash flow, and the acquisition is expected to be accretive to cash distributable to unitholders upon closing (expected in the fourth quarter of this year). We look forward to offering natural gas treating services to our Texas intrastate customers and to other producers in various supply basins, including the rapidly developing shale plays.”
KMP owns an interest in or operates more than 28,000 miles of pipelines and 170 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products and its terminals store petroleum products and chemicals and handle bulk materials like coal and petroleum coke.

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