Kinder Morgan builds gas pipeline network with acquisition
New York-listed midstream company Kinder Morgan said June 1 it was paying $1.2bn to acquire a joint venture with 185 miles of natural gas pipeline.
It said it expects to close in the third quarter on a deal to acquire Stagecoach Gas Services, a consortium between Consolidated Edison and Crestwood Equity Partners.
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Stagecoach holds four natural gas storage facilities that have a combined working capacity of 41bn ft3, along with 185 miles of natural gas pipelines with multiple interconnections.
Kimberly Watson, the president of interstate natural gas pipelines for Kinder Morgan, said the acquisition will help bring more gas supplies to markets in the northeast US.
Kinder Morgan reported net income at $1.41bn, compared with a year-ago loss of $306mn, for the first quarter. Revenue improved to $5.21bn in the three months ending March 31, from $3.11bn reported in the first quarter of 2020.
CEO Steve Kean attributed most of the gain in net income to the strong performance of its natural gas pipeline division during the February winter storm in Texas that led to sweeping regional power outages and idled large parts of the energy sector along the US Gulf Coast.
All told, however, Kinder reported total natural gas transport volumes during the first quarter were 3% lower than the same period last year, due in large part to production declines from reservoirs feeding its Colorado interstate pipeline system and lower Permian supplies during the February storm.