HOUSTON, Nov. 15, 2010 /PRNewswire-FirstCall/ -- Eagle
Ford Gathering LLC, a 50/50 joint venture (JV) between Kinder
Morgan Energy Partners, L.P. (NYSE: KMP) and Copano Energy, L.L.C.
(Nasdaq: CPNO), today announced the execution of a definitive
long-term agreement to provide services to Chesapeake Energy
Marketing, Inc., an affiliate of Chesapeake Energy Corporation
(NYSE: CHK), in the Eagle Ford Shale play in South Texas.
Under the agreement, Chesapeake will commit a significant
quantity of natural gas production from multiple counties in
South Texas over a 14-year term.
Eagle Ford Gathering will gather Chesapeake's gas from major
delivery points and provide transportation, processing and
fractionation services. Eagle Ford Gathering's previously
announced 30-inch pipeline in the western Eagle Ford Shale play is
under construction and is expected to begin full service in the
third quarter of 2011; however, certain segments are expected to be
available for service in the first half of the year.
"We are pleased to have the opportunity to provide Chesapeake
with a full slate of services for its rapidly growing Eagle Ford
Shale production," said R. Bruce
Northcutt, Copano Energy's President and Chief Executive
Officer. "Eagle Ford Gathering's agreement with Chesapeake
fully subscribes the members' initial pipeline and processing
capacity commitments of 375,000 MMBtu per day, representing a
significant step in the JV's growth and in its ability to generate
long-term, fee-based cash flows for the benefit of Copano's
unitholders. We are currently working with Kinder Morgan to increase our respective
pipeline and processing capacity commitments to 600,000 MMBtu per
day, which will enable the JV to serve additional Eagle Ford Shale
producers."
Duane Kokinda, president of
Kinder Morgan's Texas Intrastate
Pipelines Group, said, "We are delighted to enter into this
agreement with Chesapeake for the remainder of the 375,000 MMBtu
per day of capacity currently committed to the joint venture, and
we look forward to working with Copano to expand the scope of the
joint venture to handle significant additional volumes from the
Eagle Ford Shale play."
Kinder Morgan and Copano will
invest a total of approximately $175
million to construct 111 miles of pipeline facilities to
serve Eagle Ford Shale production from Chesapeake and from SM
Energy Company (NYSE: SM), with which the JV executed a gas
services agreement in July 2010.
Eagle Ford Gathering has 375,000 MMBtu per day of firm
capacity on Kinder Morgan's
intrastate pipeline from Laredo to
Katy and 375,000 MMBtu per day of
firm processing capacity at Copano's Houston Central processing
plant. Copano serves as operator and managing member of Eagle
Ford Gathering.
About Kinder Morgan Energy Partners, L.P.
Kinder Morgan Energy Partners, L.P. is a leading pipeline
transportation and energy storage company in North America. KMP owns an interest in
or operates approximately 28,000 miles of pipelines and 180
terminals. Its pipelines transport natural gas, gasoline,
crude oil, CO2 and other products, and its terminals store
petroleum products and chemicals and handle bulk materials like
coal and petroleum coke. KMP is also the leading provider of
CO2 for enhanced oil recovery projects in North America. One of the largest
publicly traded pipeline limited partnerships in America, KMP has
an enterprise value of over $30 billion. The general
partner of KMP is owned by Kinder
Morgan, Inc., a private company. Kinder Morgan
Management is a limited partner in KMP and manages and controls its
business and affairs. For more information please visit
www.kindermorgan.com.
About Copano Energy, L.L.C.
Houston-based Copano Energy,
L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with
operations in Oklahoma,
Texas, Wyoming and Louisiana. Its assets include
approximately 6,400 miles of active natural gas gathering and
transmission pipelines, 250 miles of NGL pipelines and eight
natural gas processing plants, with over one Bcf per day of
combined processing capacity and 22,000 barrels per day of
fractionation capacity. For more information please visit
www.copanoenergy.com.
Forward-Looking Statements
This news release includes forward-looking statements.
Although Kinder Morgan and Copano Energy believe that their
expectations are based on reasonable assumptions, they can give no
assurance that such assumptions will materialize or that the
proposed transactions will be consummated. Important factors
that could cause actual results to differ materially from those in
the forward-looking statements in this release include: price
volatility and market demand for natural gas and natural gas
liquids; the impact on volumes and resulting cash flow of
technological, economic and other uncertainties inherent in
estimating future production, producers' ability to drill and
successfully complete and attach new natural gas supplies and the
availability of downstream transportation systems and other
facilities for natural gas and NGLs; higher construction costs or
project delays due to inflation, limited availability of required
resources or the effects of numerous environmental, legal or other
uncertainties; general economic conditions; and the effects of
government regulations and policies. These and other risks
and uncertainties are described in the risk factors sections of
Kinder Morgan's and Copano Energy's
Forms 10-K and 10-Q as filed with the Securities and Exchange
Commission.
Contacts:
|
|
|
|
|
|
Kinder
Morgan Energy Partners, L.P.
|
Copano
Energy, L.L.C.
|
|
Media Relations
|
Carl A. Luna, SVP and
CFO
|
|
Joe Hollier, (713)
369-9176
|
713-621-9547
|
|
or
|
or
|
|
Investor
Relations
|
Jack Lascar /
jlascar@drg-l.com
|
|
Mindy Mills, (713)
369-9490
|
Anne Pearson/
apearson@drg-l.com
|
|
|
DRG&L /
713-529-6600
|
|
|
|
SOURCE Copano Energy, L.L.C.