Reported 5 months ago
Kinder Morgan has acquired oil and gas assets in West Texas from Avad Energy Partners for around $100 million, including 265 wells and 11,600 acres with potential for increased oil production through enhanced recovery techniques like carbon dioxide injection. The deal reflects the industry's response to the Inflation Reduction Act's $60 per tonne tax credit for carbon sequestration, making older oilfields more financially feasible. Kinder Morgan plans to leverage carbon capture incentives to boost production from these properties and is considering divesting older conventional oilfields while focusing on higher-potential assets. The acquisition aligns with the company's commitment to staying in the exploration and production business, with estimates suggesting an additional 100-300 million barrels of oil could be extracted from the acquired field over time.
Source: YAHOO