Kinder Morgan restructuring possible but not easy, Credit Suisse says

|By:, SA News Editor

Kinder Morgan Partners (KMP) has the motivation to at least consider some kind of restructuring and/or elimination of incentive distribution rights, and such a move is doable but it wouldn't be easy, Credit Suisse analyst John Edwards says.

Chairman Rich Kinder would be the linchpin to a transaction thanks to the ~23% stake he owns in the company, the analyst says as he envisions three scenarios that potentially could play out, including using KMP units and EPB units to eliminate the IDR burden from both entities while allowing KMI to continue as an entity, a move that would be analogous to Linn Energy/LinnCo's structure.

Edwards writes that a restructuring would remove at least one major distraction to investors and allow KMP to trade back toward his target price of $90.