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Monday, August 11, 2014

U.S. Treasury looking at increase in master limited partnerships, (NYSE: KMI)

The U.S. Treasury Department is looking into increased use by companies of the master limited partnership (MLP) as a business structure, a department spokesperson said on Monday, hours after a pioneering user turned its back on the MLP.Houston-based Kinder Morgan Inc, the biggest U.S. pipeline company, said it will consolidate into a single corporation, folding together its existing organization of several master limited partnerships (MLPs).The Treasury statement, sent in an email, came in answer to questions from Reuters following Kinder Morgan's news."We at Treasury are looking into the effects of these transactions on future tax revenues," the spokesperson said.

Kinder Morgan, Inc. (KMI) owns and manages a diversified portfolio of energy transportation and storage assets. Shares of KMI traded higher by 9.0% or $3.25/share to $39.37. 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 139939616.