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Sunday, August 10, 2014

Kinder Morgan to fold units into one company in $70 billion deal, (NYSE: KMI), (NYSE: KMP)

Top U.S. pipeline company Kinder Morgan Inc said on Sunday it will put all its publicly traded units under one roof in a $70 billion deal, responding to investor concerns about its growth prospects and complicated financial structure.The oil and gas pipeline company said it would shed the tax-advantaged legal structure it had popularized during the U.S. shale boom, the Master Limited Partnership (MLP), and fold its units into one company with a market capitalization of $92 billion organized as a C-corporation.The affected units include Kinder Morgan Energy Partners LP , Kinder Morgan Management, and El Paso Pipeline Partners. The deal is comprised of $40 billion in Kinder Morgan Inc equity, $4 billion in cash and $27 billion in assumed debt.Chairman and Chief Executive Officer Rich Kinder had been under pressure from investors and last month on Kinder Morgan Partners' second-quarter earnings call said combinations of the Kinder companies were being evaluated.

Kinder Morgan, Inc. (KMI) owns and manages a diversified portfolio of energy transportation and storage assets. Shares of KMI traded higher by 2.12% or $0.75/share to $36.12. In the past year, the shares have traded as low as $30.81 and as high as $38.30. On average, 5370730 shares of KMI exchange hands on a given day and today's volume is recorded at 3215206.

Kinder Morgan Energy Partners, L.P. (KMP) is a pipeline transportation and energy storage company in North America. Shares of KMP traded higher by 0.45% or $0.36/share to $80.34. In the past year, the shares have traded as low as $71.32 and as high as $84.98. On average, 1078830 shares of KMP exchange hands on a given day and today's volume is recorded at 701408.



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