Kinder Morgan Sells Non-Core Permian Basin Assets
Kinder Morgan Energy Partners, L.P. announced Wednesday that Kinder Morgan CO2 Company has sold certain non-core oil and gas properties located primarily in the Permian Basin of West Texas to various buyers for approximately $27 million. Proceeds from the sale will be used to pay down debt. KMP announced in April 2006 when it acquired a number of oil and gas properties from Journey that it would divest those that did not fit into its strategic plan for CO2 flooding. This transaction completes that divestiture on terms consistent with the company's acquisition plan.
Kinder Morgan CO2 Company is the largest transporter and marketer of carbon dioxide in the United States. It owns the most extensive CO2 pipeline network in the industry, with over 1,300 miles of pipelines and a net recoverable CO2 reserve base in excess of 5 trillion cubic feet. The company also is the second largest oil producer in Texas.
Kinder Morgan Energy Partners, L.P. 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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