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Kinder Selling Gathering to MDU
Houston-based Kinder Morgan Inc. has agreed to sell three natural gas gathering systems for nearly $21 million to WBI Holdings Inc., the natural gas pipeline unit of MDU Resources Group Inc. The gathering systems in Montana, Colorado, Kansas and Nebraska include operations that were discontinued for divestiture last September as part of Kinder's "back to basics" restructuring program (see NGI, Sept. 20, 1999).
MDU, headquartered in Bismarck, ND, will receive more than 1,000 miles of gathering lines, 14,000 hp of compression and a natural gas processing facility. Kinder's divested assets include the Bowdoin, Niobrara, and the Yenter Systems. They will be operated as a part of WBI Holdings' pipeline and storage group and are all close to existing systems operated by WBI. The acquisition is expected to close later this month.
"Acquiring these assets will expand our gathering pipeline system in areas where we are already active, providing for additional development and growth opportunities not only for our pipeline operations but also for our energy marketing and natural gas production lines of business," said John K. Castleberry, president of WBI Holdings, Inc.
"Upon completion of this sale, our divestiture program will be more than 90% complete," said Richard Kinder, CEO. "Going forward, we will continue to concentrate on our midstream fee-based businesses that produce stable earnings, have significant upside potential and minimize commodity price risk."
Carolyn Davis, Houston
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