Kinder Morgan/Copano Enter Into Eagle Ford Shale Gas Services Agreement with Anadarko
HOUSTON, Feb. 3, 2011 /PRNewswire/ -- Eagle Ford Gathering LLC, a joint venture between Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Copano Energy, L.L.C. (Nasdaq: CPNO), today announced the execution of a definitive long-term agreement to provide significant natural gas gathering, transportation, processing and fractionation services to Anadarko E&P Company LP in the Eagle Ford Shale resource play.
"We look forward to working with Anadarko and are pleased to add them to a growing list of producers who have chosen to use Eagle Ford Gathering's midstream services," said R. Bruce Northcutt, Copano Energy's president and chief executive officer. "Eagle Ford Gathering's agreement with Anadarko represents a significant step toward full utilization of the joint venture's newly expanded capacity."
Duane Kokinda, president of Kinder Morgan's Texas Intrastate Pipeline Group, said, "We are pleased that Anadarko, one of the largest producers in the Eagle Ford Shale play, has signed on for a significant portion of Eagle Ford Gathering's expanded capacity. We are continuing discussions with other producers and we are optimistic that we will fully subscribe the expanded project capacity in the near future."
Eagle Ford Gathering's previously announced 30-inch pipeline in the western Eagle Ford Shale play is under construction and is expected to begin service in the third quarter of 2011. After fully subscribing its initial capacity of 375,000 MMBtu per day, the joint venture recently announced plans to construct 74 miles of additional pipelines that will enable it to deliver natural gas to Formosa Hydrocarbons Company for processing. The additional pipelines, which are expected to be completed by year end, will enable the joint venture to more fully utilize the 600 MMcf per day capacity of its 30-inch pipeline.
About Kinder Morgan Energy Partners, L.P.
Kinder Morgan Energy Partners, L.P. is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates approximately 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle bulk materials like coal and petroleum coke. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $30 billion. The general partner of KMP is owned by Kinder Morgan, Inc., a private company. For more information please visit www.kindermorgan.com.
About Copano Energy, L.L.C.
Houston-based Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with operations in Oklahoma, Texas, Wyoming and Louisiana. Its assets include approximately 6,400 miles of active natural gas gathering and transmission pipelines, 250 miles of NGL pipelines and eight natural gas processing plants, with over one Bcf per day of combined processing capacity and 22,000 barrels per day of fractionation capacity. For more information please visit www.copanoenergy.com.
This news release includes forward-looking statements. Although Kinder Morgan and Copano Energy believe that their expectations are based on reasonable assumptions, they can give no assurance that such assumptions will materialize or that the proposed transactions will be consummated. Important factors that could cause actual results to differ materially from those in the forward-looking statements in this release include: the impact of inflation on project costs and the availability of required resources; the effects on the project schedule, project costs, or both, of numerous regulatory, environmental, political, legal and operational uncertainties; the impact on volumes and resulting cash flow of technological, economic and other uncertainties inherent in estimating future production and producers' ability to drill and successfully complete and attach new natural gas supplies, and the availability of downstream transportation systems and other facilities for natural gas and NGLs. These and other risks and uncertainties are described in the risk factors sections of Kinder Morgan's and Copano Energy's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
SOURCE Copano Energy, L.L.C.; Kinder Morgan Energy Partners, L.P.