RTTNews | Jul 16, 2021 08:50AM EDT

08:49 Friday, July 16, 2021 (RTTNews.com) - Kinder Morgan, Inc. (KMI) announced Friday that it has agreed to acquire Indianapolis-based Kinetrex Energy from an affiliate of Parallel49 Equity for $310 million.

Kinetrex is the leading supplier of liquefied natural gas (LNG) in the Midwest and a rapidly growing player in producing and supplying renewable natural gas (RNG) under long-term contracts to transportation service providers.

The acquisition includes two small-scale, domestic LNG production and fueling facilities, a 50% interest in a landfill RNG facility, and commercial agreements to begin construction on three additional landfill-based RNG facilities.

Once operational next year, total annual RNG production from the four sites is estimated to be over four billion cubic feet. RNG is derived from abundant renewable sources, including organic waste in landfills, wastewater treatment plants and agricultural operations.

By capturing methane produced from the decomposition of organic waste, the RNG production process reduces or eliminates greenhouse gas emissions.

The transaction requires regulatory approval under Hart-Scott-Rodino and is expected to close in the third quarter of 2021.

After close, key members of Kinetrex's management team will be joining KMI to pursue new projects that expand their successful RNG platform.

KMI expects the investment to be accretive to its shareholders as the three RNG facilities become operational over the next 18 months, with the purchase price and additional development capital expenditures representing less than six times expected 2023 EBITDA.

Read the original article on RTTNews ( https://www.rttnews.com/3209687/kinder-morgan-to-buy-renewable-natural-gas-developer-kinetrex-energy-for-310-mln-quick-facts.aspx)

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