NEW YORK (TheStreet) -- Kinder Morgan Energy Partners (KMP) said Tuesday that it has agreed to buy a 50% stake in Petrohawk Energy's (HK) natural gas gathering and treating business in the Haynesville Shale for $875 million in cash, creating the largest gathering and midstream business in the Haynesville Shale of northwest Louisiana.
The assets consist of more than 170 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 a day by the end of 2010. Also, the system's amine treating plants have a projected capacity of about 2,635 gallons a minute by the end of the year.
The transaction is expected to be accretive to cash available to unitholders starting in 2011 and significantly accretive afterwards. The transaction is expected to be completed by the end of May.
-- Reported by Andrea Tse in New York
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