Kinder Morgan (KMI) could make good progress filling its converted Double H Pipeline following the acquisition of Outrigger Energy. We estimate that in a best case, KMI could meet 80% of Double H capacity with NGL supply from its own and the Outrigger G&P assets in the Bakken.
KMI announced the $855MM Outrigger deal on January 13. East Daley Analytics noted that the acquisition can support KMI’s Double H (NGLs) and Bison Xpress (Gas) projects. We estimate Double H Pipeline will have a capacity of about 70 Mb/d after conversion from crude oil to NGL service.
The Outrigger system is included in Energy Data Studio and includes:
- The Bill Sanderson gas processing plant – 270 MMcf/d capacity (see starred plant on the map)
- A 104-mile, 350 MMcf/d gathering header (see Header system in yellow on the map)
- The ability to connect Outrigger NGL production to Double H Pipeline.
The map shows an overview of Kinder Morgan’s Bakken assets after acquiring the Outrigger system, including the Bill Sanderson plant. KMI’s gas processing plants are interconnected through a series of pipelines, and the Watford City and Sidney plants directly connect to Double H. By acquiring Outrigger, KMI can provide access to Bill Sanderson, Roosevelt, and Norse NGL plant production. According to plant data in Energy Data Studio, the Bill Sanderson plant will add 20 Mb/d of NGLs.
KMI will produce 53 Mb/d of NGLs in the Bakken post-acquisition of the Outrigger system. If KMI could route all its NGL volumes to Double H, the pipeline would be 80% utilized. That would only leave 15 Mb/d of additional space for third-party shippers. We believe KMI likely timed the 1Q26 pipe conversion to coincide with or follow some contractual commitments with ONEOK (OKE).
On KMI’s 4Q24 earnings call, executives said the Outrigger assets give it exposure to production north of the Missouri River. Producers behind KMI’s and the Outrigger G&P system include Continental, Hess (HES), Devon Energy (DVN), Chord (CHRD) and Exxon (XOM), as shown in East Daley’s Energy Data Studio. CHRD and HES have recently been active on KMI’s Bakken G&P system north of the Missouri.
Users of East Daley’s new Energy Path tool can trace molecules from producers on Outrigger, KMI and other Bakken systems to demand markets. Reach out to East Daley for a demo of Energy Path. – Rob Wilson, CFA and Julian Renton Tickers: CHRD, DVN, HES, KMI, OKE, XOM.
Energy Path - Powered by Energy Data Studio
Introducing Energy Path by East Daley Analytics — a revolutionary tool designed to transform how you view the energy market. With Energy Path, you can seamlessly track the molecule from wellhead to demand, gaining a complete view of the entire oil and gas value chain. From upstream to midstream to downstream, this multi-commodity product offers unparalleled insights across natural gas, NGLs and crude oil. Monitor volumes and fees at every stage, empowering your decision-making with a holistic market perspective.
See energy differently — Request your Energy Path demo now!
The Dirty Little Secrets 2025 Report is Live!
The 2025 Dirty Little Secrets written report is available now. This report goes beyond the webinar discussions to provide a deeper analysis of the topics covered. Learn how commodities are intertwined and identify opportunities for profit from market dislocations. Request a copy of the Dirty Little Secrets report.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.
