Energy infrastructure firm Kinder Morgan has acquired Hiland Partners for about $3bn, including the assumption of $1bn of debt.
Hiland operates crude oil gathering and transportation pipelines and natural gas gathering and processing systems primarily in the Bakken shale oilfields in North Dakota and Montana.
The company’s operations are primarily located in the Mid-Continent and Rocky Mountain regions of the US.
Hiland’s customers include Continental Resources, Oasis Petroleum, XTO Energy, Whiting Petroleum and energy firm Hess.
The company’s crude oil gathering systems feature about 1,225 miles of gathering pipelines.
Hiland’s 485-mile Double H Pipeline will transport crude oil from the company’s Dore terminal in North Dakota to Guernsey, Wyoming.
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By GlobalDataThe pipeline interconnects with Pony Express Pipeline for further transportation to Cushing, Oklahoma.
Double H Pipeline will have an initial capacity of about 84,000 barrels per day, with an expansion to around 108,000 barrels a day in 2016.
Hiland’s gas gathering and processing systems in North Dakota and Montana include about 1,800 miles of gathering pipelines.
Kinder Morgan chairman and CEO Richard Kinder said: "This transaction establishes a premier midstream platform for us in the Bakken with a significant amount of acreage dedicated under long-term gathering agreements.
"These acreage dedications are with some of the Bakken’s largest and most successful producers, covering some of the most attractive and economically viable areas in the basin."
Kinder Morgan owns an interest in or operates about 80,000 miles of pipelines and 180 terminals.