Kinder Morgan Inc (NYSE:KMI): Multi-Year Contracts and Corporate Update

0
740

Dallas, Texas 12/29/2014 (FINANCIALSTRENDS) – Kinder Morgan Inc (NYSE:KMI) is a midstream energy company that has delivered more than 18.5% returns year-to-date. The company operates terminals and pipelines to facilitate transport of natural gas, gasoline, crude oil and other products.

Despite volatility in global crude prices and bearing short to medium-term outlook, the company hit a 52-week high of $42.81 on Friday. Its previous close resembles close to 44% gains from its 52-week low of $29.73.

Kinder Morgan recently inked long-term transportation and storage agreements with Cheniere Energy, Inc. (NYSEMKT:LNG). The company also filed Form 8-K pertaining to its equity distribution agreement with certain sales agents.

Multi-Year Contract

Kinder Morgan Inc (NYSE:KMI) recently announced that three of its subsidiaries have entered into multi-year storage and transportation agreements with Corpus Christi Liquefaction, LLC, a Cheniere subsidiary. KMI subsidiaries include Kinder Morgan Tejas Pipeline, Kinder Morgan Texas Pipeline and Tennessee Gas Pipeline Company.

The company will expand its Texas intrastate pipeline system to provide 250,000 dekatherms per day and its Tennessee pipeline system to provide 300,000 dekatherms per day of firm transportation. In addition, KMI will also provide 3 billion cubic feet of natural gas storage capacity to facilitate the LNG export facility near Corpus Christi.

Upon completion of certain conditions, the natural gas transportation service can be increased to 800,000 dekatherms per day.

Equity Distribution Agreement

Kinder Morgan Inc (NYSE:KMI) also recently entered into an equity distribution agreement with Credit Suisse Securities (USA) LLC, UBS Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., and Mitsubishi UFJ Securities (USA), Inc. as Sales Agents.

Pursuant to the agreement, KMI may sell shares of its Class P common stock for an aggregate offering price of up to $5 billion. Sales will be made only by one of the Sales Agents in block transactions or as agreed between KMI and the sales agents.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.