Two top reasons for Kinder Morgan move: stalled share prices, lower tax bill

|About: Kinder Morgan, Inc. (KMI)|By:, SA News Editor

Before today’s pop, all four Kinder Morgan stocks traded roughly flat to slightly down in 2014, and a source familiar with the just-announced Kinder combination tells WSJ the stalling share price of the four stocks was one reason Richard Kinder moved to simplify the structure.

Another reason for the deal: the consolidated company will be more tax efficient - even with the restructuring, Kinder Morgan says it actually will cut its tax bill by $20B over 14 years despite relinquishing the MLP tax benefits.

The source says KMI now is likely to focus squarely on the midstream space, buying up more energy infrastructure in the U.S. amid the country’s oil and gas boom.

KMI +10.7%, KMP +18.7%, KMR +26.2%, EPB +22.5%.