Pembina Pipeline to buy Kinder Morgan Canada for $4.5B

Marco Green
August 24, 2019

The acquisition is valued at approximately $2.3 billion including the assumption of Kinder Morgan Canada's preferred shares and outstanding net debt. The institutional investor acquired 324,749 shares of the pipeline company's stock, valued at approximately $6,781,000.

Trading volume in stock market is the number of shares or contracts that point towards the full activity of a security or stock market for a given period. Parallel Advisors LLC now owns 6,487 shares of the pipeline company's stock worth $135,000 after buying an additional 798 shares during the last quarter. SeaCrest Wealth Management LLC lifted its stake in Kinder Morgan by 2.7% in the second quarter. Its distance from 20-days simple moving average is -1.15% and its distance from 50-days simple moving average is -2.57% while it has a distance of 5.72% from the 200-days simple moving average.

KMI will receive 0.3068 shares of Pembina for each KMI held share in KML. Kinder Morgan Canada jumped as much as 35 per cent to $14.84. (NYSE:KMI). Teacher Retirement Systems Of Texas owns 0.18% invested in Kinder Morgan, Inc. The stock has a market cap of $45.57 billion, a P/E ratio of 23.00, a PEG ratio of 4.22 and a beta of 0.86. "(NYSE:KMI) For Its Upcoming Dividend - Yahoo Finance" published on July 25, 2019, published: "Kinder Morgan's Gulf LNG project wins US approval for exports - Seeking Alpha" on August 01, 2019. (NYSE:KMI) earned "Market Perform" rating by BMO Capital Markets on Tuesday, July 30.

In other news, insider Richard D. Kinder purchased 300,000 shares of the stock in a transaction on Wednesday, May 29th. Earnings-Per-Share (EPS) is the most important segment of a company's profit allocated to each share of common stock.

"We believe KML's assets will be a great fit with Pembina's business and this transaction is highly beneficial to KML's shareholders", said Steve Kean, CEO of both Kinder Morgan Canada and its USA -based parent, in a news release. Finally, Zacks Investment Research restated a "buy" rating and issued a $23.00 price objective on shares of Kinder Morgan in a report on Saturday, June 29th. The firm had revenue of $3.21 billion during the quarter, compared to the consensus estimate of $3.59 billion. The shares were acquired at an average price of $19.68 per share, for a total transaction of $5,904,000.00. The stated figure of KMI displays a quarterly performance of 0.25%, bringing six-month performance to 6.25% and year to date performance of 32.57%. Stockholders of record on Wednesday, July 31st were given a dividend of $0.25 per share. (NYSE:KMI) Shares? - Yahoo Finance" on July 05, 2019, also with their article: "This Ultra-High-Yield Dividend Stock Is Looking Increasingly Attractive - The Motley Fool" published on July 28, 2019, published: "Energy Sector Update for 08/21/2019: "PBA, PPL.TO, KMI, KML.TO, FET, CPST - Nasdaq" on August 21, 2019. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. It said work will resume at Kinder Morgan's Burnaby, B.C., terminal as well as in communities in Alberta.

Rating Scale Calculation (1-5 Numeric Scale): Rating Scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell, 5.0 Strong Sell.

The USA listed company saw a recent price trade of $20.39 and 14,030,082 shares have traded hands in the session. Stifel Nicolaus downgraded shares of Kinder Morgan from a "buy" rating to a "hold" rating and set a $22.00 price objective on the a report on Monday, June 17th. The North American energy infrastructure provider has been considering a number of alternatives for its majority owned Canadian subsidiary, Kinder Morgan Canada, in the first half of 2019.

Analyst Views: Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $22.05. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and Carbon dioxide segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline and storage systems; natural gas and crude oil gathering systems, and natural gas processing and treating facilities; natural gas liquids (NGL) fractionation facilities and transportation systems; and liquefied natural gas facilities.

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Institutional Ownership is held at 64.50% while insider ownership was 11.00% of KMI. Institutional ownership alludes to the ownership stake in a company that is held by extensive money related associations, pension funds or endowments.

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