BUZZ-Kinder Morgan rises after buying natgas gathering system for $640 mln

Updates

Shares of pipeline operator Kinder Morgan KMI.N rise 1.1% to $28.47 in a high-oil-price environment

Company's unit Hiland Partners to purchase a natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC for $640 mln

Acquisition includes a 270 mln cubic feet per day (mmcf/d) processing facility and a 104-mile gas gathering header pipeline with 350 mmcf/d of capacity connecting supplies from the Williston Basin area to high-demand markets

KMI expects acquisition to be immediately accretive to its shareholders

*"Acquisition of existing assets provides a quicker path to incremental capacity and allows for KMI to save on capex that would be needed to construct a similar new build," RBC Capital Markets analyst Elvira Scotto says

Company expects to reduce capital expenditures needed to accommodate the growth of its existing Bakken region customers

Transaction expected to close in 1Q25

Stock was up 53.8% in 2024

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))