- KInder Morgan (NYSE:KMI) +20.1%, Kinder Morgan Partners (NYSE:KMP) +27.1%, Kinder Morgan Management (NYSE:KMR) +34.6%, El Paso Partners (NYSE:EPB) +30.5% premarket on news of the consolidation of the Kinder companies that will create the largest energy infrastructure company in North America, with an 80K-mile network of pipes that together would be long enough to circle the Earth three times.
- Kinder appears to have solved its biggest problem in one stunning swoop: how to maintain growth; to increase distributions by a projected 5%-6%, Kinder would have to put $3B-$4B to work each year on attractive projects, a daunting task for any firm.
- "This is a very simple and elegant solution to a problem of complexity," says Baird analyst Ethan Bellamy; he does not think other MLPs will follow in Kinder's footsteps because other companies still benefit from the financial structure as a way to attract investment.
- ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, ENY, MLPN, MLPG, EMLP, MLPS, MLPX, MLPY, MLPJ, AMU, YMLI, ATMP, ZMLP, MLPW, IMLP, ENFR, MLPC
at CNBC.com (Nov 10, 2014)