Pipeline Giant Kinder Morgan Just Announced The Second-Largest Energy Transaction Ever

Business Insider

Kinder Morgan announced it would buy out all its subsidiaries, making it the largest energy infrastructure firm in North America, according to Bloomberg's Susan Warren.

At an all-in valuation of $71 billion, its the second-largest energy transaction ever, according to the FT's Stephen Foley

The Houston-based firm currently has three additional sub-units independently trading on the New York Stock Exchange. These firms will now all be consolidated under the KMI ticker. 

The move comes nearly a year after an analyst named Kevin Kaiser of Hedgeye Risk Management called into question how  Kinder Morgan was booking expenditures and criticized the wave of so-called Master Limited Partnerships, which Kinder Morgan had taken part in. MLPs are designed to allow energy companies to get around some corporate taxes. But  Kaiser said MLPs constituted a "regulatory nightmare."  In a statement on its site Sunday, Kinder Morgan CEO Richard Kinder said the transaction "  dramatically simplifies the  Kinder Morgan  story."

Over the last year, Kinder Morgan and its units have underperformed peers like Enbridge, TransCanada and Williams:

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kinder morgan stock comparison


For some perspective on Kinder Morgan's American footprint, here's a map showing all their assets:

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kinder morgan map

Kinder Morgan

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