Kinder Morgan Acquires El Paso Corp
By: Leon Castles
on Friday, May 25, 2012
Houston-based Kinder Morgan has made an announcement that they have completed the acquisition of El Paso Corp and it will be effective from May 25, 2012. The company said that the deal cost them $21.1 billion but they will definitely make better business from the merger. Kinder Morgan is among the largest midstream and fourth largest energy company in the North America. The company said that they will now add 4400 miles of natural gas pipelines from El Paso. Richard Kinder, President and CEO of Kinder Morgan said that they are really happy with the acquisition of El Paso Corp. He also said that the company believes that natural gas will be the gas of the future and therefore they want to improve their business now.
The company said that after the deal the company will be able to save more than $400 million per year since they will only have to add the pipelines. The company also revealed that they will declare dividends of at least $1.40 per share for 2012 instead of $1.35 that was set by the company earlier. Kinder Morgan also announced that Anthony Hall Jr and Robert Vagt who served the board of El Paso Corp will now join Kinder Morgan board of directors.