Kinder Morgan Energy Partners L.P. (NYSE: KMP) announced Tuesday that it will acquire a 50 percent stake in Petrohawk Energy Corp.'s natural gas gathering and treating business for $875 million in cash, according to Associated Press.
The transaction's enterprise value of up to $1.75 billion makes it one of the biggest U.S. gathering and treatment systems.
Top Best Penny Stocks, a leading financial publication, is pleased to alert investors of stocks on the move. Sign up for our Free Stock Newsletter.
The deal announced Tuesday includes more than 170 miles of actively used pipeline in the Haynesville Shale of northwest Louisiana and is expected to reach 375 miles of pipeline by the end of the year.
Petrohawk (NYSE: HK) will run the business during a transition period. Afterwards, a new company named KinderHawk Field Services LLC will take over after that. The new business will employ workers from both Kinder Morgan and Petrohawk.
Petrohawk said it will use proceeds from the sales to further increase its liquidity.
Kinder Morgan said the deal will not impact its distribution this year and should add to cash available to unitholders starting in 2011.
The transaction is expected to close by the end of May.
Sign up for Top Best Penny Stocks' free newsletter. To subscribe, enter your e-mail address into the frame at the bottom of this press release or visit our website.
Follow us on Twitter: http://www.Twitter.com/topbestps
About Us
Top Best Penny Stocks is a leading stock web site that allows investors and interested parties to research stocks that are on the move. We also track small cap companies that are on the brink of a financial breakout. To feature a company on our web site please contact us at the email listed below.
Please click here to read the full disclaimer.
