NGT News
July 19, 2021
Energy infrastructure company Kinder Morgan Inc. (KMI) has agreed to acquire Indianapolis-based Kinetrex Energy from an affiliate of Parallel49 Equity.
Kinetrex is a supplier of liquefied natural gas in the Midwest, as well as a rapidly growing producer and supplier of renewable natural gas (RNG) under long-term contracts to transportation service providers. Kinetrex has a 50% interest in the largest RNG facility in Indiana, as well as signed commercial agreements to begin construction on three additional landfill-based RNG facilities. Once the new sites are operational next year, total annual RNG production from the four sites is estimated to total over 4 billion cubic feet.
Kinder Morgan Strikes $310 Million Deal for Kinetrex Energy
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Kinder Morgan to acquire RNG developer Kinetrex Energy for $310m
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Author Bio
Reuben Gregg Brewer believes dividends are a window into a company s soul. He tries to invest in good souls.
What happened
Shares of U.S. pipeline goliath
Kinder Morgan (NYSE:KMI) rose a hefty 13% in March according to data from S&P Global Market Intelligence. That stands in contrast to some of its closest peers, which were up, but not to the same degree. Here s one key reason why.
So what
A portion of the advance is likely due to improving expectations for the broader energy sector as oil prices have rebounded off their 2020 lows. Higher oil prices should translate into increased demand for the pipelines, storage, and other assets that Kinder Morgan owns. Higher commodity prices will specifically benefit the company s CO2 division, which generates income by helping drillers improve the output of wells with Kinder Morgan s compensation tied, at least partially, to energy prices.