Kinder Morgan Energy Partners, L.P., (KMP) has closed on the previously announced transaction to purchase the natural gas treating business from Crosstex Energy, L.P., and Crosstex Energy Inc. for approximately $266 million, including working capital and closing adjustments.
“We are pleased to broaden the footprint of our natural gas business with this transaction which provides us with additional fee-based assets that produce stable cash flow,” said Richard D. Kinder, chairman and CEO of Houston, Texas-based KMP. “This acquisition is expected to be immediately accretive to cash distributable to KMP unitholders.”
KMP purchased approximately 290 amine-treating and dew-point control plants predominantly located in Texas and Louisiana, with additional facilities in Mississippi, Oklahoma, Arkansas and Kansas. The company will offer these natural gas treating services to its Texas Intrastate customers and to other producers in various supply basins, including the rapidly developing shale plays.
According to KMP, the transaction makes it the largest provider of contracted natural gas treating services in the United States.