Kinder Morgan expects future growth in its Eagle Ford Shale pipeline gathering and transport assets. The company expects the acquisition of Petrohawk by BHP to only enhance value across the Haynesville Shale and Eagle Ford Shale.
“On July 1, we closed on our agreement to buy Petrohawk’s 50% interest in KinderHawk Fuel Services, and a 25% interest at Petrohawk’s Gathering and Treating business in the Eagle Ford Shale in South Texas. Now we own 100% KinderHawk, which has over 400 miles of pipeline in the Haynesville Shale play and approximately 2 Bcf a day of capacity. We have throughput that is now above 1 Bcf a day and growing. And we think this is just a tremendous long-term asset. We believe its value has been enhanced by the pending purchase of Petrohawk by BHP. And if you look at the BHP’s presentation, we saw some pretty significant ramp up in dollars they expect to spend on their drilling program. Now that drilling program embraces Haynesville and Eagle Ford together with smaller position in the Permian. But we think this bodes very well for our assets, both in Haynesville and Eagle Ford.””We now own also the 25% of what’s called EagleHawk Fuel Services in the Eagle Ford. That’s 280 miles of gas gathering lines and 120 miles of condensate gathering lines. And we think the Eagle Ford Shale is an area that where throughput will grow dramatically as drilling down there continues to expand.”
Read the full press release at SeekingAlpha.com
Kenneth E. DuBose
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