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KMP Completes Crosstex Buy – Analyst Blog

Zacks Market Commentaries (October 6th, 2009) Writes:
Late last week, Kinder Morgan Energy Partners LP (KMP) closed the previously announced acquisition of natural gas treating business from Dallas-based Crosstex Energy LP (XTEX) and its general partner Crosstex Energy Inc. (XTXI) for approximately $266 million.  As part of the transaction, Kinder Morgan purchased approximately 290 amine-treating and dew-point control plants from natural gas company Crosstex. These plants are primarily located in Texas and Louisiana , with additional facilities in Mississippi , Oklahoma , Arkansas and Kansas.  Kinder Morgan will use these natural gas treatment plants in servicing its Texas Intrastate customers and to other producers in various supply basins, including the fast growing shale plays. Following the deal, Kinder Morgan has become the largest provider of contracted natural gas treating services in the country.  The Crosstex asset acquisition will allow the partnership to expand its natural gas business through the inclusion ...

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