Kinder Morgan is acquiring KKR’s 50% interest in a joint-venture with El Paso that controls gathering and processing assets in Utah and the Eagle Ford Shale for $300 million. The deal is a precursor to the $20+ billion Kinder Morgan – El Paso acquisition that will close in May. At closing of both deals, Kinder will own 100% of the two systems.
Both systems were in place to help gather and process El Paso’s upstream oil and gas production in the areas. The Camino Real System in South Texas has capacity of 150 mmcf/d and 110,000 b/d. The Altamont system is larger and includes over 1,000 miles of pipelines, a processing plant, and a natural gas fractionator. [Read more…]