Kinder Morgan said it has reached a definitive agreement whereby KMI will acquire Hiland Partners for a total purchase price of approximately $3 billion, including the assumption of debt.
Hiland’s assets, which are mostly fee-based, consist of crude oil gathering and transportation pipelines and gas gathering and processing systems, primarily serving production from the Bakken Formation in North Dakota and Montana. The transaction creates a premier midstream platform for KMI in the Bakken with a significant amount of acreage dedicated under long-term gathering agreements.
Kinder Morgan anticipates retaining nearly all of Hiland’s approximately 430 employees and maintaining KMI’s presence in Oklahoma.
Kinder Morgan expects to close the transaction in the first quarter of 2015.
Bracewell & Guiliani acted as legal counsel to KMI. UBS Securities LLC has provided a $2.025 billion bridge financing facility to KMI.
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Press Release; Image: Kinder Morgan