Energy company, Kinder Morgan Energy Partners LP(KMP) reported on Wednesday a plan to buy Copano Energy(CPNO).
The Houston, TX based company announced that they will be acquiring natural gas company Copano Energy. This transaction, which is expected to occur at the end of the third quarter, will coast KMP for approximately $3.2 billion in stock. With the assumption of debt included, the deal will cost around $5 billion.
KMP will pay $40.81 per share for CPNO’s 90.9 million outstanding shares.
With the acquisition, KMP will own The Eagle Ford Gathering, which is a joint venture with Copano. Eagle Ford is a gathering and transportation company with includes 400 miles of pipelines.
KMP stated that they plan to hire the majority of CPNO’s 415 employees.
The sale is expected to have a significant effect on KMP’s earnings for 2013.
Kinder Morgan Energy shares were down 51 cents, or -0.57% during Wednesday morning trading. The stock has increased 5% in the past year. Copano Energy shares were up $6.02, or 18.17% during Wednesday morning trading. The stock has a 15% upside from a year ago.
The Bottom Line
Shares of Kinder Morgan Energy Partners LP(KMP) have a 5.78% yield, based on Tuesday’s closing price of $89.34.
Kinder Morgan Energy Partners LP(KMP) is a “Recommended” dividend stock at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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