Kinder Morgan Energy Partners L. P. said that it is going to buy out 50 per cent of the stake in Petrohawk Energy Corp. Kinder, which is into the business of pipeline transportation and energy storage, is going to buy the natural gas gathering and treatment business.

The total worth of the deal is expected to be $875 million and all of it is going to be done in cash.

If the deal happens, then Kinder is going to be one of the biggest of gathering and treatment systems in the US. It is possible since the total transaction value of the enterprise is around $1.75 billion.

As per the deal, 170 miles of pipeline in Haynesville Shale of northwest Louisiana is going to be included. This one is currently being actively used and is expected to be increased up to 375 miles.

Besides, as per the talks between the two companies, Petrohawk will be running the business during the transaction period. A new company named KinderHawk Field Services LLC, will be formed, that will take over later.

The proceeds from the sale of gas from the transaction will be used by Petrohawk for increasing its liquidity.