KM closes US$3 billion Hiland acquisition

Kinder Morgan, Inc. has closed its previously announced acquisition of Hiland Partners (Hiland) for a total purchase price of approximately US$3 billion, including the assumption of approximately US$1 billion of debt. 

Hiland’s assets, mostly fee based, consist of crude oil gathering and transportation pipelines and natural gas gathering and processing systems, primarily serving production from the Bakken Formation in North Dakota and Montana.

“This transaction establishes a premier midstream platform for us in the Bakken with a significant amount of acreage dedicated under long-term gathering agreements,” said Kinder Morgan Chairman and Chief Executive Officer Richard D. Kinder. “These acreage dedications are with some of the Bakken’s largest and most successful producers, covering some of the most attractive and economically viable areas in the basin. We look forward to providing quality midstream services to producers in the Bakken and pursuing incremental growth opportunities in the basin.”

Hiland’s customers include Continental Resources, Inc., Oasis Petroleum Inc., XTO Energy Inc., Whiting Petroleum Corporation and Hess Corporation, among others.

Kinder Morgan, Inc. is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 80 000 miles of pipelines and 180 terminals. The company’s 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. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of approximately US$130 billion. 

Adapted from press release by Hannah Priestley-Eaton

Published on 16/02/2015

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