Great question and thanks for asking about it. KMI is buying it by tendering its shares, KMP is a part of the enlarged group, but KMP is not the legal entity buying EP.
That of course is a good thing, but you are asking the right question. Also, KMP just issued bonds in a separate transaction.
I guess when you read the between the lines, the market may not have liked the fact KMP's assets were being sold to help the deal along, but it seems to be all it will do is help KMP raise money, service debt and pay distributions. Maybe, the market was a little confused today on this deal, but then again, KMI, KMR and KMP are all linked. When KMI first came to the market, KPM tanked because it was felt that all of KMP cash flow would be upstreamed or seomthing like that.
Anyone remember what happened to KMP when KMI ipo'd in 2011? I do. KMP traded off to $71.20 beacuse of concerns it might have to upstream cash flow to KMI. By mid Feb. it rose from $71.20 to $77.80 by 4/26. This is an identical set-up. 9.3% was the rise then, so we if the market gets its head around this, we should see 90.50+/- by 4/27.