Kinder Morgan buys Hiland Partners to boost Bakken midstream position
Kinder Morgan has announced a definitive agreement to acquire Hiland Partners (Hiland) for a total purchase price of approximately $3 B, including the assumption of debt.
Hiland’s crude oil gathering systems, located in North Dakota and Montana, consist of approximately 1,225 mi of gathering pipelines that deliver crude oil to the basin’s major takeaway pipelines and rail terminals.
At closing, the crude oil gathering systems will have more than 1.8 MM acres dedicated under long-term, fee-based agreements with major Bakken oil producers, the largest of which will be with Continental Resources, Inc. (Continental),
The company said its gas gathering and processing systems in North Dakota and Montana consist of approximately 1,800 mi of gathering pipelines and, upon completion of a plant expansion in 2015, 240 MMcfd of gas processing capacity and 30,000 bpd of fractionation capacity.
Additionally, Hiland’s Midcontinent systems gather and process gas in the Woodford shale and other areas of Oklahoma.
Kinder Morgan anticipates retaining nearly all of Hiland’s approximately 430 employees and maintaining KMI’s already significant presence in Oklahoma.
The transaction is subject to customary closing conditions, including regulatory approval. Kinder Morgan expects to close the transaction in the first quarter of 2015.
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