• 1 hour U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 9 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 10 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 3 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 3 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 3 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 4 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 4 days India Needs Help To Boost Oil Production
  • 4 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 4 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 4 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 4 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 5 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 5 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 5 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 5 days Oil M&A Deals Set To Rise
  • 5 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 6 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 6 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 6 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 6 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 6 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options
The Safest Way To Bet On The Bitcoin Boom

The Safest Way To Bet On The Bitcoin Boom

Often described as the backbone…

Saudis Lose Market Share To OPEC Rivals

Saudis Lose Market Share To OPEC Rivals

OPEC members Iraq and Iran…

MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Kinder Morgan Merges Assets In $70-Billion Deal

Pipeline
The newly consolidated Kinder Morgan will be able to move aggressively to acquire rivals and to expand its existing 129,000 km of pipelines.

Kinder Morgan (NYSE:KMI), the biggest pipeline company in North America, said Sunday it is consolidating its vast oil-and-gas pipeline empire into a single company, in a $44 billion deal amid investor worries about the operations' growth prospects.

The company, which encompasses a large network of oil and gas pipelines across the United States and Canada, said it would acquire its three associated companies and reorganize as one corporation based in Houston.

The deal is the largest energy industry merger since Exxon bought Mobil in 1999, and it will make Kinder Morgan the third-biggest energy company in the U.S., after Exxon and Chevron.

“This transaction dramatically simplifies the Kinder Morgan story, by transitioning from four separately traded equity securities today to one security going forward, and by eliminating the incentive distribution rights and structural subordination of debt,” Chairman and CEO Richard D. Kinder said in a statement.

“Further, we believe that KMI will be a valuable acquisition currency and have a significantly lower hurdle for accretive investments in new energy infrastructure,” he added.

The newly consolidated Kinder Morgan, with an estimated value of about $140 billion — $100 billion of market value and $40 billion of debt —is expected to move aggressively to acquire rivals and to expand its existing 129,000 km. of pipelines.

Under the deal’s terms, Kinder Morgan is acquiring its two related M.L.P.s — Kinder Morgan Energy Partners and El Paso Pipeline Partners — and a third related company, Kinder Morgan Management, for $71 billion.

Fracking-fuelled boom

The move highlights the vast demand for oil and gas infrastructure, especially in the north east of the U.S. Producers have tapped massive new oil and natural gas reserves in shale deposits, yet they need pipelines that can transport surging oil and gas production from there to refineries.

U.S. energy production has soared since 2009 thanks to the increasing use of hydraulic fracturing, or fracking, and other technologies that have made it possible to tap energy trapped in shale deposits.

Oil output has increased 55%, or nearly three million barrels a day, over the period, while natural-gas production has risen 23%, much of it in parts of the country without sufficient existing pipelines.

By. Cecilia Jamasmie of Mining.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News