Kinder Morgan Sells Powder River Assets
Kinder Morgan Energy Partners, L.P. has sold its Powder River Gathering System and the Painter Unit fractionation facility in Wyoming to Momentum Energy Group, LLC for approximately $43 million in cash. The parties also executed a long-term processing agreement at KMP's Douglas processing plant. Proceeds from the sale will be used to pay down debt. KMP management said the assets were not core to the company's strategy of operating primarily transportation pipelines and terminals.
KMP is one of the largest publicly traded pipeline limited partnerships in America and owns or operates more than 27,000 miles of pipelines and approximately 145 terminals. Its pipelines transport more than 2 million barrels/day of gasoline and other petroleum products and up to 9 billion cubic feet/day of natural gas; and, its terminals handle over 80 million tons of coal and other bulk materials annually and have a liquids storage capacity of about 70 million barrels for petroleum products and chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States.
The general partner of KMP is owned by Kinder Morgan, Inc., one of the largest energy transportation, storage and distribution companies in North America. Combined, the two companies have an enterprise value of more than $35 billion.
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