The acquisition also includes the Kings Landing project, a greenfield processing complex. Credit: nostal6ie/Shutterstock.

Kinetik has concluded the acquisition of Durango Permian, marking a significant expansion in the Northern Delaware Basin in the US.

The deal, which was announced last month, was valued at $765m, including a $75m contingent consideration.

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With the deal, Kinetik brings approximately 3,862km of gas-gathering pipelines and a gas processing capacity of 220mcf/d. 

The acquisition doubles Kinetik’s pipeline mileage and augments its processing capacity, with more than 60 new customers being added to its portfolio.

The acquisition also includes the Kings Landing project, a 200mcf/d greenfield processing complex in Eddy County, New Mexico.

Scheduled for completion in April next year, the Kings Landing project is expected to boost Durango’s processing capacity to 420mcf/d.

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In a press statement, Kinetik said: “As a result of the acquisition, Kinetik has significantly enhanced its overall Delaware Basin wide footprint. Taken together, the GCX divestiture and Durango acquisition are immediately deleveraging with Kinetik’s leverage ratio at 3.4 times following the closing.”

Kinetik said it funded the purchase through the sale of its 16% stake in the Gulf Coast Express pipeline in the Permian basin, Texas, to an ArcLight Capital affiliate.

Commissioned in 2019, the 853km-long Gulf Coast Express project can transport up to two billion cubic feet per day of natural gas.

In May 2024, Kinetik also secured a 15-year service agreement with an existing customer to provide gas-gathering and processing services in Eddy County, New Mexico. 

Kinetik is engaged in providing comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water.