Hiland operates crude oil gathering and transportation pipelines and gas gathering and processing systems which primarily serve production from the Bakken Formation in North Dakota and Montana.

Kinder Morgan chairman and CEO Richard Kinder said: "We look forward to continuing to provide high quality midstream services to these producers and pursuing incremental growth opportunities in the basin."

"While Hiland’s gathering systems serve some of the Bakken’s and North America’s most economic acreage, the projections incorporate announced reductions in drilling activity by Hiland’s customers.

"Although Hiland’s cash flow is largely fee-based, our projections are based on commodity prices consistent with the current forward curve for the portion that is sensitive to commodity prices."

"This transaction is about expanding our midstream footprint and Hiland’s employees will be a critical part of that growth."

The transaction, which is subject to customary closing conditions, including regulatory approval, is scheduled to be completed in the first quarter of 2015.

Based on its Hiland long-term forecast, Kinder Morgan anticipates that the multiple of EBITDA paid for Hiland, including future growth capital investments, would decline to approximately 10 times by 2018.

Upon completion of the transaction, Kinder Morgan will retain nearly all of Hiland’s approximately 430 employees and will also maintain its already significant presence in Oklahoma.