Kinder Morgan Inc. (KMI) has been in news sinceit announced big consolidation plans on August 11. The founder of the oil and gas firm, Houston-based billionaire Richard Kinder, has planned to bring all its publicly traded master limited partnerships – Kinder Morgan Energy Partners (NYSE: KMP), Kinder Morgan Management (NYSE: KMR) and El Paso Pipeline Partners (NYSE: EPB) – under one roof.
The firm already received an early clearance under the Hart-Scott-Rodino Antitrust Improvements Act (HSR.V) from the Federal Trade Commission for its planned purchase of Kinder Morgan Energy Partners L.P. on August 25, 2014. The merger deal worth $70 billion is expected to be sealed by the year end.
The move will help Kinder Morgan to cut its massive capital spending which will in turn enhance its dividend profile. Management expects to raise dividend by about 10% each year from 2015 through 2020. Per bizjournals, the consolidated Kinder Morgan aims to be nation's top dividend-paying energy company (read: MLP ETFs: Still Good for Income Investors?).
Once set for operation, the joint entity will be tagged as the largest energy infrastructure company in North America and the third-largest global energy company with an enterprise value of about $140 billion.
Welcomed News to the Space
While the news allowed the shares of KMI and its MLPs cousins to skyrocket on ...
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