|Bid||35.75 x 2200|
|Ask||37.99 x 1400|
|Day's Range||35.65 - 36.50|
|52 Week Range||28.30 - 38.56|
|Beta (3Y Monthly)||0.83|
|PE Ratio (TTM)||19.50|
|Forward Dividend & Yield||1.82 (4.98%)|
|1y Target Est||41.93|
Kinder Morgan (KMI) announced that it agreed to sell the US portion of Cochin Pipeline and its 70% stake in Kinder Morgan Canada Ltd. to Pembina Pipeline.
(Bloomberg) -- Pembina Pipeline Corp. increased its bet on the future of Canada’s turbulent oil-sands industry, agreeing to buy Kinder Morgan Inc.’s Canadian unit and the U.S. portion of a key pipeline for about C$4.35 billion ($3.3 billion).The deal makes Pembina a major player in the oil-storage business, giving it 10 million barrels of capacity in the crude complex near Edmonton, Alberta, a key hub for oil-sands producers. With the takeover of Kinder’s Cochin Pipeline system, Pembina also becomes a key provider of the condensate that oil-sands companies need to blend with their thick crude to enable it to flow through pipelines.The acquisition is a major bet on the future of the oil sands at a time when delays to key export pipelines have hampered the industry’s ability to expand and forced the Alberta government to support Western Canadian heavy crude prices with unprecedented production limits, which it extended for another year on Tuesday. The deal also continues a flight of international capital out of the oil sands, following major divestitures from ConocoPhillips and Royal Dutch Shell Plc in recent years.Pembina Chief Executive Officer Mick Dilger said the deal increases its vertical integration, diversifying its offerings to its oil-sands customers and enhancing the company’s resilience in an uncertain environment. The takeover also gives Pembina additional integration opportunities, and those benefits are reflected in the premium it paid for the assets, Chris Cox, an analyst at Raymond James, said in a note.“The acquisition further strengthens the quality of the company’s integrated value chain, improves the quality of the company’s cash flows and adds a new compelling business line with the Edmonton storage business,” Cox said.For Kinder Morgan, the agreement comes more than three months after the Canadian unit said it would continue as a standalone company. It held two bidding rounds, “but ultimately concluded that a transaction on satisfactory terms was not available at the current time,” Steve Kean, CEO of both Kinder Morgan and the Canadian unit, told investors on a May conference call.The transaction values Kinder Morgan Canada Ltd. at about C$2.3 billion, or C$15.02 per share, based on an all-share exchange ratio of 0.3068 of a common share of Pembina per Kinder Canada security, according to a statement. That’s about 37% more than the stock’s closing price on Tuesday. It values the U.S. portion of the Cochin pipeline at about C$2.05 billion for cash consideration.Pembina fell as much as 1.8% to C$48.37 on Wednesday before paring losses. Kinder Morgan Canada jumped as much as 35% to C$14.84.Before the deals were announced early Wednesday, there was speculation that Kinder Morgan Canada could be a potential buyer for the Trans Mountain pipeline that runs from Alberta to Vancouver. The government bought the line from Kinder last year and has promised to sell the conduit back to a private company after it completes a long-delayed expansion project. Multiple indigenous groups in Canada have expressed interest in buying a stake in the line, and analysts have said the line also might be a good fit for pension funds.Pembina’s Dilger said on the conference call that the Trans Mountain line would fit into the company’s strategy of serving western Canadian oil producers but that the company doesn’t want to take on the baggage that comes along with the project, which has faced opposition and legal challenges from environmentalists, indigenous groups and British Columbia’s government.Though Pembina is “uniquely qualified” to operate Trans Mountain, “we don’t want to submerge our entire management team and subject our entire organization and reputation to all the noise that entails,” Dilger said on a conference call to discuss the transaction.Pembina also confirmed that another party has a right of first refusal on one of the assets it acquired. The company wouldn’t disclose the party or the asset, but Dilger said on a call to discuss the deal that if that right of first refusal were to be exercised, it would shrink the size of the assets Pembina is buying “a little bit” but would not be “devastating.”(A previous version of this story corrected the stock decrease in the fifth paragraph.)\--With assistance from Brian Eckhouse.To contact the reporter on this story: Kevin Orland in Calgary at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Christine Buurma, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Years of delay in building new pipelines have led to Western Canada's oil production outpacing takeaway capacity and driven up demand for storage tanks. Pembina's deal follows an unsolicited bid for rival Inter Pipeline Ltd , highlighting growing interest in the midstream business of transporting and storing crude. The sale of Kinder Morgan Canada, whose parent is Houston-based Kinder Morgan Inc , also represents the exit of another foreign company from Canada's oil sector.
Canada's Pembina Pipeline Corp has agreed to buy Kinder Morgan Canada and the U.S. portion of the Cochin pipeline for C$4.35 billion ($3.28 billion), bulking up its storage resources in Canada. Years of delay in building new pipelines have led to Western Canada's oil production outpacing takeaway capacity and driven up demand for storage tanks. Pembina's deal follows an unsolicited bid for rival Inter Pipeline Ltd, highlighting growing interest in the midstream business of transporting and storing crude.
Shares of Kinder Morgan Inc. rallied 2.9% in premarket trading Wednesday, after the energy transportation and storage company announced a deal to sell the U.S. portion of the Cochin Pipeline for $1.55 billion to Pembina Pipeline Corp. . As part of the deal, Pembina has agreed to buy all of the outstanding common stock of Kinder Morgan Canada Ltd. , of which Kinder Morgan owns a 70% stake. Kinder Morgan will receive 0.3068 shares of Pembina for each Kinder Morgan Canada share it owns, which will result in Kinder Morgan receiving 25 million shares of Pembina stock, or just under 5% of the shares outstanding. Based on Tuesday's closing price of the U.S.-listed Pembina stock, that would be worth about $923.8 million. The deals are expected to close late in the fourth quarter or in the first quarter of 2020. Kinder Morgan initially expects to use the proceeds to pay down debt. Kinder Morgan's stock has soared 31% year to date through Tuesday, while the SPDR Energy Select Sector ETF has edged up 0.8% and the S&P 500 has gained 16%.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This news release refers to adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") and adjusted cash flow from operating activities per share ("adjusted cash flow per share"), which are financial measures that are not defined by Generally Accepted Accounting Principles ("GAAP").
NYSE: PBA) ( Pembina ) under which Pembina has agreed to acquire all of the outstanding common equity of KML (including the 70 percent majority voting interest held by Kinder Morgan Inc. (NYSE: KMI)), subject to the terms of the arrangement agreement between KML and Pembina. On closing, KML shareholders will receive .3068 shares of Pembina for each KML share. Based on yesterday's closing price for Pembina , the total consideration to be received by KML common shareholders is valued at $15.12 per KML share, which represents a 38 percent premium to yesterday's KML closing price.
Oil and gas pipeline company Kinder Morgan said it will sell the U.S. part of its Cochin pipeline to Pembina Pipeline in a cash-and-stock deal. Kinder will get around $1.6 billion in cash as well as 25 million shares of Pembina, valued at close to $925 million. In addition, Pembina will purchase all outstanding shares of Kinder Morgan Canada Limited.
Equinor's (EQNR) initial estimate of recoverable resources from the Sputnik discovery is currently in the range of 20-65 million barrels of oil.
Phillips 66 Partners (PSXP) is expected to grow on the back of its stable fee-based revenue generating prowess and major growth projects.
WINNIPEG, Manitoba/CALGARY, Alberta (Reuters) - A recent unsolicited bid for Inter Pipeline Ltd has highlighted the potential of Canada's midstream companies to offer insulation from volatile oil prices. Inter Pipeline, Pembina Pipeline Corp and Keyera Corp own key infrastructure such as gathering pipelines, gas-processing plants and storage tanks that are in high demand, and reported record second quarter profits.
NYSE: PBA) announced today that its Board of Directors declared a common share cash dividend for August 2019 of $0.20 per share to be paid, subject to applicable law, on September 13, 2019 to shareholders of record on August 23, 2019. For non-resident shareholders, Pembina's common share dividends should be considered "qualified dividends" and may be subject to Canadian withholding tax. For shareholders receiving their common share dividends in U.S. funds, the August 2019 cash dividend is expected to be approximately U.S. $0.1509 per share (before deduction of any applicable Canadian withholding tax) based on a currency exchange rate of 0.7545.
Pembina Pipeline (PBA) delivered earnings and revenue surprises of 119.05% and -12.48%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
[Editor's note: "6 Monthly Dividend Stocks to Buy" was previously published in March 2019. It has since been updated to include the most relevant information available.]Most dividend stocks pay their shareholders quarterly, but a few dividend-yielding stocks offer monthly distributions. The group is small: less than 100, with many of the offerings being exchange-traded funds (ETFs) or closed-end actively managed funds. And so investors looking for monthly dividend stocks to buy are limiting their universe quite a bit.But there are quite a few attractive dividend-yielding stocks that pay out monthly. Several offer compelling cases for both their upside and safe dividends, with attributes that go beyond simply the timing of their distributions.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Oversold Stocks To Buy Right Now These six stocks all fit that bill, offering not only monthly dividends but potential share price appreciation and reasonable payout ratios. Realty Income (O)Realty Income (NYSE:O) is the best-known of the monthly dividend payers, to the point that it has trademarked the slogan "The Monthly Dividend Company."In terms of past performance, the monthly payouts have been just the cherry on top of a delicious sundae. O stock has returned -- including dividends -- an average of 15.8% annually since 1994, according to a investor presentation. It has been one of the best-performing real estate investment trusts in the market over that stretch.O stock has become much more expensive over the past few months, bouncing more than 25% over the last year. But there's still a nice bull case at the moment. O yields nearly 4%,The portfolio looks both safe and nicely diversified, with Walgreens Boots Alliance (NASDAQ:WBA) and FedEx (NYSE:FDX) being its two largest tenants. Considering Realty Income's track record, it's worth staying long.Source: Shutterstock LTC Properties (LTC)Like with O stock, there's still a solid bull case for senior housing and healthcare property REIT LTC Properties (NYSE:LTC).With the "baby boom" generation aging, demand should stay strong. Meanwhile, LTC still yields nearly 5%. * 7 Oversold Stocks To Buy Right Now There are some risks here: investors are concerned that changing healthcare insurance reimbursement policies will impact LTC's tenants. The stock actually hit a five-year low earlier this year as a result. But sentiment has improved -- and should continue to do so. With LTC still trading at a reasonable 11.9 P/E, the shares could rally. Add to that its yield, paid monthly, and it's definitely worth a look.Source: Shutterstock Shaw Communications (SJR)Canadian telecommunications company Shaw Communications (NYSE:SJR) hasn't posted particularly strong performance over the past few years. SJR actually has declined 3.5% over the past year.There are some concerns about the wireless industry in Canada, much as there are in the U.S.But with a 4.34% dividend yield and an 20.04x forward price-to-earnings multiple, SJR isn't pricing in much improvement. With 5G a potential catalyst in the mid-term, there's a nice case for SJR stock at current levels.Dividends are announced in Canadian dollars, which can affect the payouts received by American investors. Still, a monthly dividend, a 4.6%-plus yield and a potential upside provide a nice combination here.Source: Marriott Select Service Hotels via Flickr (Modified) Apple Hospitality REIT (APLE)Apple Hospitality REIT (NYSE:APLE) owns 241 hotels in the U.S. -- 115 of the hotels operate under the Marriott (NASDAQ:MAR) banner, with the remaining 126 flying under the Hilton (NYSE:HLT) flag.Those two strong brands underpin a strong portfolio. Geographic diversification limits downside risk as well. With an impressive 7.7% yield paid monthly, that makes APLE one of the best dividend-yielding stocks in terms of monthly income. * 7 Oversold Stocks To Buy Right Now The story admittedly isn't perfect. Growth has been relatively meager, and APLE's dividend has stayed at 10 cents per share per month since a 2015 IPO. Investors would have been much better off buying either MAR or HLT, both of which have better than doubled from early 2016 lows.But for income-focused investors, APLE looks like a strong pick.Source: Shutterstock Pembina Pipeline (PBA)Pembina Pipeline (NYSE:PBA) is the biggest company on this list and the riskiest. Pipeline companies generally are lower-risk plays in the oil and gas space, but Pembina does have some concerns. Canadian oil stocks have struggled of late, and Pembina levered up to acquire Veresen last year.That said, there's still a lot to like here. Earnings increased in the double-digits last year, largely due to the acquisition. PBA pays a solid 4.9% dividend. Valuation is relatively reasonable against U.S. rivals like Kinder Morgan (NYSE:KMI) and Plains All American Pipeline (NYSE:PAA).If Pembina can continue to grow once the Veresen acquisition is fully integrated, there should be nice upside on top of the nearly 5% yield.Source: Shutterstock STAG Industrial (STAG)STAG Industrial (NYSE:STAG) isn't necessarily a spectacular stock, but it's one that can drive steady long-term returns along with monthly payouts. The company leases industrial buildings to single tenants and has a nicely diversified portfolio from both a customer and geographic standpoint. The average lease length currently is nearly five years, which should keep recent dividend growth intact. * 7 Oversold Stocks To Buy Right Now Longer-term, there are minor concerns. Valuation isn't cheap, with a forward P/E of 73. An economic downturn could lead to lease cancellations or even customer bankruptcies. Investors focused on value might want to wait for a cheaper price than the current stock price of $30.But investors looking for growing monthly dividend payouts don't have a ton of options, and STAG very well might be the best one.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Oversold Stocks To Buy Right Now * 7 Stocks to Buy Upgraded by Wall Street * 7 Marijuana Stocks With Critical Levels to Watch The post 6 Monthly Dividend Stocks to Buy appeared first on InvestorPlace.