Monday, October 17, 2011

Natural Gas: The $21 Billion Kinder Morgan El Paso Deal and the Luckiest Ex-Enron Employee (KMI; KMP; EP; EPB)

Two from Deal Journal:
Kinder Morgan-El Paso Deal: Wall Street Reacts
While you were eating Doritos and watching football Sunday afternoon, natural gas company Kinder Morgan announced a $21.1 billion acquisition for El Paso. Here is a first look at Wall Street analysts’ take on the deal.

Wells Fargo: “Management appears to be making a long-term bet on the benefits and increased use of natural gas as the fuel of the future in the U.S. …Assuming a full-year benefit, management anticipates KMI could support a hypothetical 2012 dividend of $1.45 per share, which implies the transaction is $0.10 accretive (i.e., 7%) to 2012 DCF per share relative to our current forecast.”...MORE
Richard Kinder: The Luckiest Ex-Enron Employee
The fall of Enron was sparked exactly ten years ago today. And in a lovely coincidence, one of Enron’s former executives, Richard Kinder, managed not only to escape the carnage but to engineer one of the biggest energy deals in history.

Yesterday, Kinder’s company Kinder Morgan, announced a $21.1 billion deal for natural-gas company El Paso. Kinder was president and chief operating officer of Enron until the end of 1996, and in total he worked for Enron for more than 16 years. Enron in 1996 said that it asked Kinder to stay on for another five-year term, but he decided to split....MORE
Also at DJ:
Goldman's Long Reach in the Kinder Morgan-El Paso Deal