Kinder Morgan's TGP Capacity 100% Booked - Analyst Blog

A leading master limited partnership MLP Kinder Morgan Energy Partners, L.P. KMP announced that the partnership's Tennessee Gas Pipeline Company TGP has awarded 100% of the capacity available in TGP's binding open season to Antero Resources AR for its planned Broad Run Flexibility and Broad Run Expansion Projects.

The open season ending on Apr 11, offered a total long-term firm capacity of 790,000 dekatherms per day (Dth/d) for 15 years on the Broad Run Lateral in West Virginia and on TGP's 100 and 500 mainlines.

The estimated total capital cost of the projects is around $782 million. It includes horsepower and piping alterations at existing stations and one new compressor station on the Broad Run Lateral, all in West Virginia. Two new TGP mainline compressor stations in Tennessee and Kentucky as well as alterations in five existing mainline compressor stations in Kentucky are also included in the total capital cost.

A precedent agreement with Antero Resources for a capacity of 790,000 Dth/d comprises two components. Firstly, the Broad Run Flexibility Project will offer 590,000 Dth/d of firm transportation capacity from TGP's Broad Run Lateral in TGP Zone 3 to mutually agreeable delivery points in TGP Zone 1. The Broad Run Flexibility Project is scheduled to be commissioned on Nov 1, 2015. Secondly, the Broad Run Expansion Project will offer an additional firm transportation capacity of 200,000 Dth/d on the same capacity path. The Broad Run Expansion Project is expected to come online on Nov 1, 2017.

Kinder Morgan carries a Zacks Rank #3 (Hold). Other stocks worth considering in the industry include Range Resources Corporation RRC and Helmerich & Payne, Inc. HP, both with a Zacks Rank #1 (Strong Buy).