Definitive Agreements signed by JV Partners;
Project capacity nearly fully subscribed
Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder
Morgan, Inc. (NYSE: KMI), and EagleClaw Midstream Ventures, LLC
(EagleClaw), a portfolio company of Blackstone Energy Partners,
today announced a final investment decision to proceed with the
Permian Highway Pipeline Project (PHP Project) after having
executed definitive joint venture agreements and having secured
sufficient firm transportation agreements with shippers. Nearly all
capacity available on the system is subscribed and committed under
long-term, binding transportation agreements. The remaining
capacity is expected to be awarded shortly.
Shippers that have committed to the project include EagleClaw,
Apache Corporation (Apache), and XTO Energy Inc., a subsidiary of
Exxon Mobil Corporation, amongst others. As previously announced,
KMTP and EagleClaw will be the initial partners, each with a 50
percent ownership interest in the project. KMTP will build and
operate the pipeline. Apache will have the option to acquire equity
from the initial partners and has announced its intent to assign
that option to Altus Midstream, a new company announced by Apache
and Kayne Anderson Acquisition Corp. (NASDAQ: KAAC) on Aug. 8,
2018. KMI’s and EagleClaw’s ultimate ownership interest may vary
between approximately 27 percent and 50 percent, depending on the
outcome of ownership options held by anchor shippers.
The approximately $2 billion PHP Project will provide an outlet
for increased natural gas production from the Permian Basin to
growing market areas along the Texas Gulf Coast and is designed to
transport up to 2 billion cubic feet per day (Bcf/d) of natural gas
through approximately 430 miles of 42-inch pipeline from the Waha
to Katy, Texas, areas, with connections to the U.S. Gulf Coast and
Mexico markets. The PHP Project is expected to be in service in
late 2020, assuming timely receipt of the requisite regulatory
approvals.
“We are very pleased to have reached this important milestone
and to have secured the commitments required for all parties to
proceed,” said Sital Mody, President of Kinder Morgan Natural Gas
Midstream. “With a route identified and the project nearly fully
subscribed, we expect to begin stakeholder outreach, environmental
surveys and right-of-way activities in the coming months.”
“With the continued growth in drilling activity in the Permian
Basin, this project will help to provide key infrastructure for
producers to move natural gas to the best premium markets along the
Gulf Coast and South Texas,” said Jamie Welch, President and Chief
Financial Officer of EagleClaw.
David Foley, Chief Executive Officer of Blackstone Energy
Partners, added, “We are delighted to partner with Kinder Morgan
and Apache to support a project that will meet the growing
infrastructure needs of Permian Basin producers, support the
continued growth of the U.S. economy and create jobs for American
workers.”
“We are excited to see the Permian Highway Pipeline move
forward. This is a tremendous project with strong partners that
will provide us with additional access to key natural gas markets,”
said Brian Freed, Senior Vice President, Midstream and Marketing at
Apache.
About Kinder Morgan,
Inc.
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. We own an interest in or
operate approximately 84,000 miles of pipelines and
152 terminals. Our pipelines transport natural gas, refined
petroleum products, crude oil, condensate, CO2 and other products,
and our terminals transload and store liquid commodities including
petroleum products, ethanol and chemicals, and bulk products,
including petroleum coke, metals and ores. For more information
please visit www.kindermorgan.com.
About EagleClaw Midstream Ventures,
LLC
EagleClaw Midstream Ventures, LLC is focused on rapid response
to the midstream infrastructure requirements of Permian producers.
EagleClaw just announced the pending acquisition of Caprock
Midstream, another private gathering and processing company, for
approximately $1 billion. EagleClaw provides gathering, processing,
and disposal services for natural gas, crude oil, and produced
water to producers in the Delaware Basin. Pro forma for the Caprock
closing, EagleClaw will operate close to 850 miles of natural gas,
natural gas liquids, crude and water gathering pipelines; 1.3
billion cubic feet per day of processing capacity; and crude and
water storage facilities, with over 425,000 acres under long-term
dedication for midstream services from a large number of successful
and active producers in the Delaware Basin. For more information,
please visit www.eagleclawmidstream.com.
About Blackstone
Blackstone Energy Partners is Blackstone's energy-focused
private equity business, with a successful record built on our
industry expertise and partnerships with exceptional management
teams. Blackstone has invested over $15 billion of private equity
globally across a broad range of sectors within the energy
industry. Blackstone (NYSE: BX) is one of the world's leading
investment firms. Our asset management businesses, with over $440
billion in assets under management, include investment vehicles
focused on private equity, real estate, public debt and equity,
non-investment grade credit, real assets and secondary funds, all
on a global basis. Further information is available at
www.blackstone.com.
About Apache Corporation
Apache Corporation is an oil and gas exploration and production
company with operations in the United States, Egypt and the United
Kingdom. Apache posts announcements, operational updates, investor
information and copies of all press releases on its website,
www.apachecorp.com, and on its Media and Investor Center mobile
application, which is available for free download from the Apple
App Store and the Google Play store.
Important Information Relating to
Kinder Morgan’s Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Section 21E of the Securities and Exchange Act of 1934.
Generally the words “expects,” “believes,” “anticipates,” “plans,”
“will,” “shall,” “estimates,” and similar expressions identify
forward-looking statements, which are generally not historical in
nature. Forward-looking statements are subject to risks and
uncertainties and are based on the beliefs and assumptions of
management, based on information currently available to them.
Although Kinder Morgan believes that these forward-looking
statements are based on reasonable assumptions, it can give no
assurance that any such forward-looking statements will
materialize. Important factors that could cause actual results to
differ materially from those expressed in or implied from these
forward-looking statements include the risks and uncertainties
described in Kinder Morgan’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year-ended December 31, 2017 (under the headings “Risk Factors”
and “Information Regarding Forward-Looking Statements” and
elsewhere) and its subsequent reports, which are available through
the SEC’s EDGAR system at www.sec.gov and on our website at
ir.kindermorgan.com. Forward-looking statements speak only as of
the date they were made, and except to the extent required by law,
KMI undertakes no obligation to update any forward-looking
statement because of new information, future events or other
factors. Because of these risks and uncertainties, readers should
not place undue reliance on these forward-looking statements.
Important Information Relating to
Apache’s Forward-Looking Statements
This press release includes forward-looking statements. Except
for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve certain risks and uncertainties, such as Apache’s
expectations regarding future results, capital expenditures,
project completions, liquidity and financial market conditions.
These risks and uncertainties include, among other things,
insufficient cash from operations, adverse market conditions,
governmental regulations and other factors discussed in Apache’s
filings with the U.S. Securities and Exchange Commission. If any of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results or outcomes may vary
materially from those expected. Apache disclaims any intention or
obligation to update publicly or reverse such statements, whether
as a result of new information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180905005987/en/
KMI Media RelationsMelissa Ruiz, (713)
420-6397newsroom@kindermorgan.comorKMI Investor
Relations(713)
369-9490km_ir@kindermorgan.comwww.kindermorgan.comorEagleClawJamie
Welch, (713) 621-7300jwelch@eagleclawmidstream.comorBlackstone
Media RelationsPaula Chirhart, (212)
583-5011Paula.chirhart@blackstone.comorApache Media
RelationsPhil West, (713)
296-6223phil.west@apachecorp.comorApache Investor
RelationsGary Clark, (713)
296-6472gary.clark@apachecorp.com
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