HOUSTON — Kinder Morgan Inc. (KMI) has agreed to acquire NextEra Energy Partner’s South Texas assets, STX Midstream, for $1.82 billion.

The STX Midstream pipeline system includes a set of integrated, large diameter high pressure natural gas pipelines that connect the Eagle Ford basin to key growing Mexico and Gulf Coast demand markets. STX Midstream includes a 90% interest in the NET Mexico pipeline; MGI Enterprises, a PEMEX affiliate, owns the other 10%.

STX Midstream owns and operates Eagle Ford Midstream which is connected to multiple pipeline systems. STX Midstream also owns a 50% interest in Dos Caminos, which has placed in service a 62-mile pipeline that connects Howard Energy Partners’ existing midstream pipeline and facilities in Webb County, Texas, to KMI’s new Eagle Ford pipeline.

KMI expects the investment to be accretive to its shareholders, with the purchase price representing a 2024 EBITDA multiple of 8.6 times and a long-term investment-to-EBITDA multiple of approximately 7.0-7.5 times, based on KMI’s financial projections and inclusive of commercial synergies.

The transaction requires clearance under Hart-Scott-Rodino and is expected to close in the first quarter of 2024.

For more information, visit kindermorgan.com.