Kinder Morgan Buys El Paso Corp for $38 Billion

Investors in El Paso Corp. (NYSE:EP) will wake up tomorrow with a nice surprise: their holdings are now worth at least 37% more than on Friday.  Kinder Morgan (NYSE:KMI) (NYSE:KMP) (NYSE:KMR) has announced a deal to acquire El Paso Corp. for $38 billion in cash, stock and assumed debt.  The deal values El Paso Corp. at $26.87 per El Paso share.

Following is some information about the two companies.

  • El Paso Corp. (NYSE:EP): The shares recently traded at $19.59, up $0.44, or 2.3%, on Friday.  The shares have traded in a 52-week range of $12.51 to $21.54 and its market capitalization is $15.09 billion.
  • Kinder Morgan (NYSE:KMI) (NYSE:KMP) (NYSE:KMR): The shares of (NYSE:KMI) recently traded at $26.89, down $0.03, or 0.11%, on the Friday.  The shares have traded in a 52-week range of $23.51 to $31.15 and its market capitalization is $21.77 billion.  The shares of (NYSE:KMR) recently traded at $62.46, up $0.71, or 1.15%, on the day.  The shares have traded in a 52-week range of $54.07 to $67.53 and its market capitalization is $6.05 billion.  The shares of (NYSE:KMP) traded at $71.51, up $0.11, or 0.15%, on Friday.  The shares have traded in a 52-week range of $63.42 to $78 and its market capitalization is $23.58 billion.  About the company: The majority of Kinder Morgan’s assets are owned by Kinder Morgan Energy Partners LP (NYSE:KMP), which is one of the largest publicly traded master limited partnerships in the United States.  The General Partner of KMP is owned by Kinder Morgan, Inc. (NYSE:KMI).  Its third entity is Kinder Morgan Management LLC (NYSE:KMR).  The combined enterprise value of these three companies (before the El Paso Corp. acquisition is taken into consideration) is roughly $55 billion.

(Note: Selected financial data are sourced from Google Finance.  Information about Kinder Morgan’s corporate structure is sourced from the company.  All data are assumed to be accurate.)

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