In an announcement that shook up long-entrenched beliefs relating to running energy businesses, Kinder Morgan Inc (NYSE:KMI) proposed earlier this month that it would consolidate its Kinder Morgan Energy Partners LP (NYSE:KMP), Kinder Morgan Management, LLC (NYSE:KMR) and El Paso Pipeline Partners, L.P. (NYSE:EPB) arms with itself.
The $71 billion transaction would create an oil-and-gas giant and dismantle the master limited partnership business structure that Kinder Morgan itself adopted and popularized so much over the years. The new structure would do away with size limitations that were hampering growth and pave the way for expansions through acquisitions so as to address the huge opportunities arising from America’s shale revolution.
KMI’s ‘transformational’ transaction is “a reasonable strategic decision given the challenges Kinder Morgan...
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