Kinder Morgan Inc.
), the parent company of pipeline operator
Kinder Morgan Energy Partners LP
), has raised its 2013 projections for itself and the latter.
The increase is based on the contributions anticipated from
the purchase of Copano Energy that closed on May 1. KMI now
proposes to declare dividends of $1.60 per share in 2013, an
increase of nearly 2% from its published annual budget of $1.57
per share and 14% from its 2012 declared distribution of $1.40
KMP too intends to announce cash distributions of $5.33 per unit
compared with its 2013 published annual budget of $5.28 per unit
and up 7% from its 2012 declared distribution of $4.98 per unit.
The Copano acquisition will facilitate Kinder Morgan to pursue
development activities in the prolific Eagle Ford Shale areas of
South Texas. It will mark Kinder Morgan's entry into the Barnett
Shale Combo in north Texas as well as the Mississippi Lime and
Woodford shales in Okla.
The recent purchase will also help in augmenting Kinder Morgan's
midstream services' footprint, which will benefit KMI
shareholders and KMP unitholders. As a result of added cost
savings the incremental impact from Copano is likely to be
somewhat higher than the preliminary estimates at the time the
transaction was announced.
Kinder Morgan - the largest midstream and the third largest
energy company in North America - has a combined enterprise value
of about $115 billion. It owns or operates more than 80,000 miles
of pipelines and around 180 terminals. The pipelines carry
natural gas, gasoline, crude oil, CO2 and other products, while
the terminals store petroleum products and chemicals and handle
products such as ethanol, coal, petroleum coke and steel.
Both Kinder Morgan Energy Partners LP and Kinder Morgan Inc.
carry a Zacks Rank #3 (Hold). However, there are other Zacks Rank
#1 (Strong Buy) stocks -
Dawson Geophysical Company
SM Energy Company
) - which are expected to perform better over the next few
DAWSON GEOPHYS (DWSN): Free Stock Analysis
KINDER MORGAN (KMI): Free Stock Analysis
KINDER MORG ENG (KMP): Free Stock Analysis
SM ENERGY CO (SM): Free Stock Analysis Report
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