ExxonMobil signs a letter of intent; XTO Energy to be a shipper on pipeline
Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder Morgan, Inc. (KMI), EagleClaw Midstream Ventures, LLC (EagleClaw), a portfolio company of Blackstone Energy Partners, and Apache Corporation (NYSE, NASDAQ: APA) today announced that Exxon Mobil Corporation (XOM) has signed a letter of intent to support the proposed Permian Highway Pipeline Project (PHP Project). Under the letter of intent, ExxonMobil subsidiary XTO Energy may contract for up to 450,000 dekatherms per day (Dth/d) of capacity on the pipeline.
The approximately $2 billion PHP Project will provide an outlet for increased natural gas production from the Permian Basin to growing market areas along the Texas Gulf Coast and is designed to transport up to 2 billion cubic feet per day (Bcf/d) of natural gas through approximately 430 miles of 42-inch pipeline from the Waha to Katy, Texas, areas, with connections to the U.S. Gulf Coast and Mexico markets. The PHP Project is expected to be in service in late 2020, subject to the execution of definitive agreements and the receipt of construction permits.
As previously announced, KMTP and EagleClaw will be the initial partners, each with a 50 percent ownership interest in the project. Apache and EagleClaw will both be significant shippers on the proposed pipeline, with each entity planning to commit up to 500,000 Dth/d to the project. Apache will also have the option to acquire equity from the initial partners. KMTP will build and operate the pipeline.
“We are committed to supporting development of the infrastructure needed for our planned production growth in the Permian Basin,” said Sara Ortwein, President, XTO Energy. “The Permian Highway Pipeline will provide additional capacity for reliable transportation of natural gas to the U.S. Gulf Coast.”
“We are very pleased to have an industry leader like ExxonMobil support our project and are encouraged by the significant progress we have made with our co-developers and other potential shippers to rapidly shore up commitments,” said Sital Mody, President of Kinder Morgan Natural Gas Midstream. “We expect this development will accelerate our path to a final investment decision.”
In addition, KMTP and EagleClaw will hold an open season for capacity on the PHP Project. The open season begins on August 10, 2018, and interested parties should submit their written request to Dave Grisko, vice president of business development for Kinder Morgan’s Natural Gas Midstream group, at firstname.lastname@example.org or (713) 369-9870.
About Kinder Morgan, Inc.
Kinder Morgan, Inc. (KMI) is one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 85,000 miles of pipelines and 152 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals transload and store liquid commodities including petroleum products, ethanol and chemicals, and bulk products, including petroleum coke, metals and ores. For more information please visit www.kindermorgan.com.
About EagleClaw Midstream Ventures, LLC
EagleClaw Midstream Ventures, LLC is focused on rapid response to the midstream infrastructure requirements of Permian producers. The Company provides comprehensive gathering, transportation, compression, processing and treating services necessary to bring natural gas, natural gas liquids and crude oil to market. EagleClaw currently has long term dedications for over 300,000 acres from a broad number of successful and active producers in the Delaware basin. For more information, please visit www.eagleclawmidstream.com.
Blackstone Energy Partners is Blackstone's energy-focused private equity business, with a successful record built on our industry expertise and partnerships with exceptional management teams. Blackstone has invested over $15 billion of private equity globally across a broad range of sectors within the energy industry. Blackstone (BX) is one of the world's leading investment firms. Our asset management businesses, with over $440 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com.
About Apache Corporation
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google Play store.
About Exxon Mobil Corporation
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products and its chemical company is one of the largest in the world. For more information, visit www.exxonmobil.com or follow us on Twitter http://www.twitter.com/exxonmobil.
Important Information Relating to Kinder Morgan’s Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934. Generally the words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,” “estimates,” and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that any such forward-looking statements will materialize. Important factors that could cause actual results to differ materially from those expressed in or implied from these forward-looking statements include the risks and uncertainties described in Kinder Morgan’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year-ended December 31, 2017 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere) and its subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at ir.kindermorgan.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, KMI undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.
Important Information Relating to Apache’s Forward-Looking Statements
This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as Apache’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions. These risks and uncertainties include, among other things, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Apache’s filings with the U.S. Securities and Exchange Commission. If any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. Apache disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.