Kinder Morgan Energy Partners L.P.
) has entered into an agreement to settle civil lawsuits,
associated with its earlier acquisition of Copano Energy LLC,
filed in Delaware and Texas. A settlement hearing has been
scheduled for Sep 9, 2013. Earlier, the the deal was challenged
in court, citing loss for Copano stockholders.
Earlier in May, Kinder Morgan acquired Copano a midstream entity
with operations mainly in Texas, Oklahoma and Wyoming. Prior to
that, Copano unitholders approved the transaction, with more than
99% of the units casting votes in favor of the transaction.
This Copano acquisition facilitated Kinder Morgan in pursuing
development activities in the prolific Eagle Ford Shale areas of
South Texas and also allowed entry into the Barnett Shale Combo
in north Texas as well as the Mississippi Lime and Woodford
shales in Oklahoma.
The consideration received by Copano's unitholders was valued at
$40.91 per common unit based on KMP's closing price as of Jan 29,
2013, representing a 23.5% premium over the closing price of
Copano common units as of the same date. The total purchase
consideration for the deal came to about $5 billion, including
Kinder Morgan is one of the largest publicly traded master
limited partnerships (MLPs) and generally serves as a benchmark
for the pipeline MLP group.
Kinder Morgan Inc.
), one of the largest mid-stream energy companies in the U.S.,
owns the partnership's general partner interest.
Earlier, the purchase of El Paso Corp for $38 billion positioned
Kinder Morgan as the largest midstream company in North America.
The acquisition expanded its portfolio further with the addition
of Tennessee Gas Pipeline (TGP) and a portion of El Paso Natural
Gas (EPNG). Various agreements and modifications are lined up in
the coming years with these assets, which are expected to augment
the partnership's revenues.
Kinder Morgan retains a Zacks Rank #3 (Hold), implying that it is
expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, there are certain other energy pipeline operators like
Delek Logistics Partners, LP
Summit Midstream Partners, LP
) that offer value and are worth buying now. Both partnerships
sport a Zacks Rank #1 (Strong Buy).
DELEK LOGISTICS (DKL): Free Stock Analysis
KINDER MORGAN (KMI): Free Stock Analysis
KINDER MORG ENG (KMP): Free Stock Analysis
SUMMIT MIDSTRM (SMLP): Free Stock Analysis
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