Kinder Morgan Inc. (NYSE: KMI) said it had agreed to sell half its stake in an Ohio pipeline project in the Utica Shale to private equity firm Riverstone Investment Group LLC for an undisclosed amount.
Riverstone will make an upfront cash payment to Kinder Morgan, including reimbursement for 50% share of its previous capex on the $500 million project, the pipeline company said on June 28.
The private equity firm will also fund its share of future capex needed to complete the construction and commissioning of the pipeline.
Kinder Morgan shares rose 2.6% to $17.86 in morning trading.
Private equity funds around the world, with a cash pile of around $1 trillion, are looking to snap up oil and gas assets made cheaper by the drop in oil prices.
The Utopia Pipeline project, which stretches from Harrison County to Fulton County, has a capacity of 50,000 barrels per day and will become operational at the beginning of 2018.
The pipeline will connect to Kinder Morgan's existing infrastructure that transports ethane and ethane-propane mixtures from the Utica Shale to Ontario, Canada.
Credit Suisse was Houston-based Kinder Morgan’s financial adviser.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
What's Affecting Oil Prices This Week? (Feb. 5, 2024)
2024-02-05 - Stratas Advisors says the U.S.’ response (so far) to the recent attack on U.S. troops has been measured without direct confrontation of Iran, which reduces the possibility of oil flows being disrupted.