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Wednesday, January 21, 2015

Kinder Morgan to purchase Hiland Partners for $3 billion, (NYSE: CLR), (NYSE: KMI)

Kinder Morgan Inc will purchase Hiland Partners, a pipeline and logistics company founded by Continental Resources Inc Chief Executive Officer Harold Hamm, for $3 billion, the company said on Wednesday. Hiland Partners builds and operates oil gathering and transportation pipelines and natural gas gathering and processing systems primarily in the Bakken shale oilfields in North Dakota and Montana. Hiland's customers include Continental and Hess Corp.The deal, slated to close during the first quarter of this year, will give Kinder Morgan a premier position in pipelines and logistics in the Bakken, the company said. The $3 billion includes assumption of debt.Hiland's assets include the new Double H 84,000 barrels-per-day pipeline that will move Bakken crude from North Dakota to Tallgrass Energy Partners' Pony Express pipeline in Wyoming. From there, Bakken flows will move to the U.S. crude futures hub in Cushing, Oklahoma via the Pony Express.The pipeline is expected to start up by the end of January.

Continental Resources, Inc. (Continental Resources) is an independent crude oil and natural gas exploration and production company with operations in the North, South and East regions of the United States. Shares of CLR traded higher by 8.36% or $3.22/share to $41.74. In the past year, the shares have traded as low as $30.06 and as high as $80.91. On average, 4602530 shares of CLR exchange hands on a given day and today's volume is recorded at 6438943.

Kinder Morgan, Inc. (KMI) owns and manages a diversified portfolio of energy transportation and storage assets. Shares of KMI traded higher by 0.43% or $0.18/share to $42.00. In the past year, the shares have traded as low as $30.81 and as high as $43.18. On average, 24877600 shares of KMI exchange hands on a given day and today's volume is recorded at 10570061.



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