Kinder Morgan acquires North Dakota gas infrastructure for $640M, expanding presence in the region.

From Nasdaq: 2025-01-14 10:48:00

Kinder Morgan Inc. (KMI) acquires a natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC for $640 million. The deal includes a processing system with a capacity of 270 MMcf/d and a pipeline system spanning 104 miles, linking natural gas supply to high-demand markets.

The acquisition is expected to have an Adjusted EBITDA multiple of nearly eight times in 2025, generating significant financial returns. KMI plans to finance the transaction using short-term borrowings and cash on hand, reducing future capital expenditures for infrastructure expansion in the Bakken region.

The acquired gas infrastructure will complement Kinder Morgan’s existing Hiland assets, allowing for increased processing capacity from the Bakken region. This strategic acquisition will expand the company’s presence in the region and serve the growing needs of customers in the Williston Basin area.

Sunoco LP (SUN), TechnipFMC plc (FTI), and Cheniere Energy, Inc. (LNG) are better-ranked stocks in the energy sector. Sunoco boasts a Zacks Rank #1, while TechnipFMC and Cheniere Energy carry a Zacks Rank #2 each. These companies are well-positioned to capitalize on the growing demand in the energy market.

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Read more at Nasdaq: Kinder Morgan to Acquire North Dakota Gas Infrastructure for $640M