Let's play a little game, try to guess what company this is.
- Moves about 1.3 Bcf per day of CO2
- Liquids terminal capacity of 125 MMbbl
- Transports about 2.3 MMbbl of petroleum products per day
- Only oil sands pipeline serving Canada’s West Coast,moving crude from Alberta to British Columbia and Washington
- Dry bulk terminals store and handle more than 100 million tons per year of materials
- Owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals
Yes it's Kinder Morgan Inc (NYSE: KMI)
Kinder Morgan is the largest midstream and third largest energy company (based on enterprise value) in North America.
I bought 53 shares of Kinder Morgan Inc (NYSE: KMI) this stock is currently trading at:
- Price: $38.47
- P/E: 33.33
- Dividend: $0,43 (Quarterly)
- Yield: 4.47%
- EPS: 1.15
Recently Kinder Morgan Inc (KMI) Announced following.
- KMP unitholders will receive 2.1931 KMI shares and
$10.77in cash for each KMP unit. This results in a price of $89.98per unit, a 12 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 11.4 percent based on the July 16closing price reference date used by the parties during the negotiation of the transaction.
- KMR shareholders will receive 2.4849 KMI shares for each share of KMR. This results in a price of
$89.75per share, a 16.5 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 16 percent based on the July 16reference date used by the parties in the negotiation. The parties negotiated consideration for KMR shares equal to the consideration for KMP units, using the July 16reference date.
- EPB unitholders will receive .9451 KMI shares and
$4.65in cash for each EPB unit. This results in a price of $38.79per unit, a 15.4 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 11.2 percent based on the July 16reference date used by the parties in the negotiation.
- Both KMP and EPB unitholders will be able to elect cash or KMI stock consideration subject to proration.
After this announcement i got rely interested about the futures of this company, so i started to learn more, I did all ready have my eye on it before few times, but I didn't have the capital to make the purchase back then and that is too bad, since after this announcement every stock on KMI enterprise got more valuable, and i did not wanna pay too much premium, because of the merger. No the stocks have been settling for a while and I decided to make the move and bought it.
What comes to dividend, it just gets more interesting. Kinder Morgan's merger and announcement about dividend plan means a $2/share dividend in 2015 growing to $3.22/share in 2020. This would mean above 8% yield on today's price, and that kind of dividend growth is likely to bring strong capital gains. Will be interesting to see, if they are able to meet with these goals. Now i can just sit back and hope for the best.
thanks for reading.
photo: http://freedigitalphotos.com/ By cuteimage