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Aug. 21, 2019, 6:53 a.m. EDT

Kinder Morgan's stock jumps after sale of U.S. part of Cochin Pipeline for $1.6 billion

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By Tomi Kilgore

Shares of Kinder Morgan Inc. /zigman2/quotes/208455654/composite KMI -0.25% rallied 2.9% in premarket trading Wednesday, after the energy transportation and storage company announced a deal to sell the U.S. portion of the Cochin Pipeline for $1.55 billion to Pembina Pipeline Corp. /zigman2/quotes/208399120/composite PBA -0.20% /zigman2/quotes/200299714/delayed CA:PPL -0.40% . As part of the deal, Pembina has agreed to buy all of the outstanding common stock of Kinder Morgan Canada Ltd. /zigman2/quotes/207238084/delayed CA:KML -0.35% , of which Kinder Morgan owns a 70% stake. Kinder Morgan will receive 0.3068 shares of Pembina for each Kinder Morgan Canada share it owns, which will result in Kinder Morgan receiving 25 million shares of Pembina stock, or just under 5% of the shares outstanding. Based on Tuesday's closing price of the U.S.-listed Pembina stock, that would be worth about $923.8 million. The deals are expected to close late in the fourth quarter or in the first quarter of 2020. Kinder Morgan initially expects to use the proceeds to pay down debt. Kinder Morgan's stock has soared 31% year to date through Tuesday, while the SPDR Energy Select Sector ETF /zigman2/quotes/206420077/composite XLE -0.52% has edged up 0.8% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.39% has gained 16%.

/zigman2/quotes/208455654/composite
US : U.S.: NYSE
$ 20.02
-0.05 -0.25%
Volume: 13.17M
Oct. 18, 2019 6:30p
P/E Ratio
22.02
Dividend Yield
5.00%
Market Cap
$45.32 billion
Rev. per Employee
$1.30M
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/zigman2/quotes/208399120/composite
US : U.S.: NYSE
$ 35.81
-0.07 -0.20%
Volume: 427,381
Oct. 18, 2019 6:30p
P/E Ratio
15.64
Dividend Yield
5.03%
Market Cap
$18.32 billion
Rev. per Employee
$2.62M
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/zigman2/quotes/200299714/delayed
CA : Canada: Toronto
$ 46.97
-0.19 -0.40%
Volume: 1.13M
Oct. 18, 2019 4:26p
P/E Ratio
15.46
Dividend Yield
5.11%
Market Cap
$24.03 billion
Rev. per Employee
$3.40M
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/zigman2/quotes/207238084/delayed
CA : Canada: Toronto
$ 14.22
-0.05 -0.35%
Volume: 116,884
Oct. 18, 2019 4:00p
P/E Ratio
11.84
Dividend Yield
4.57%
Market Cap
$496.92 million
Rev. per Employee
$2.51M
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/zigman2/quotes/206420077/composite
US : U.S.: NYSE Arca
$ 57.03
-0.30 -0.52%
Volume: 10.28M
Oct. 18, 2019 8:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
2,986.20
-11.75 -0.39%
Volume: 1.99B
Oct. 18, 2019 5:08p
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