Kinder Morgan Energy Partners, L.P announced it has completed the purchase of a 50 percent interest in Petrohawk Energy Corporation's natural gas gathering and treating business in the Haynesville Shale for approximately $921 million in cash, which includes about $46 million in capital expenditures less cash flow, reflecting activity since Jan. 1, 2010. The joint venture ultimately is expected to have approximately 2 billion cubic feet per day of mainline throughput capacity, which will make it one of the largest gathering and treating systems in the United States.
Petrohawk will continue to operate the business during a short transition period, after which the new company, KinderHawk Field Services LLC, owned 50/50 by Petrohawk and Kinder Morgan, will assume operations. The new company will be staffed with experienced personnel from both companies. The assets consist of more than 200 miles of pipeline currently in service, which is expected to increase to about 375 miles of pipeline with projected throughput of over 800 million cubic feet per day by year-end 2010. Additionally, the system's amine treating plants have a projected capacity of approximately 2,635 gallons per minute by year end.