Kinder Morgan companies to combine into a $71B move
Kinder Morgan, oil and gas pipeline and storage companies, announced its plans of combining Kinder Morgan Inc., Kinder Morgan Energy Partners, Kinder Morgan Management and El Paso Pipeline Partners will all combine under the Kinder Morgan Inc. umbrella and trade under the KMI ticker symbol.
The total purchase of the companies will reach the $71 billion, including 27 billion of assumed debt.
The combined market value of the companies rises to $92 billion and makes it the fourth largest U.S. energy company after Exxon Mobil, Chevron and ConocoPhillips.
CEO Richard Kinder said in a statement Sunday that it will be easier for the combined company to add new pipeline projects and other energy infrastructure in a way that will add to the company’s earnings.
“In the opportunity-rich environment of today’s energy infrastructure sector, we believe this transaction gives us the ability to grow KMI for years to come,” Kinder said.
Kinder Morgan said it expects the combined company’s debt will be rated investment grade by rating agencies, which would allow it to borrow money for new projects at relatively low rates.
The deal is subject to shareholder and regulatory approval. It is expected to close this year.
Source: Usatoday
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