8-KOther Events

KINDER MORGAN, INC. 8-K Report, Corporate Update (Jan 22, 2015)

Filed January 22, 2015For Securities:KMIEP-PC

Summary

Kinder Morgan, Inc. (KMI) announced a significant development on January 21, 2015, with the declaration of its fourth-quarter 2014 cash dividend and the agreement to acquire Hiland Partners, LP. The declared dividend of $0.45 per share represents a 10% increase compared to the prior year's fourth-quarter dividend and reflects KMI's commitment to returning capital to shareholders. This dividend also exceeded the company's annual budget for 2014, indicating strong operational performance. The acquisition of Hiland Partners, a privately held entity with substantial crude oil gathering and transportation pipelines and gas gathering and processing systems primarily serving the Bakken Formation, is valued at approximately $3.0 billion. This strategic move is expected to close in the first quarter of 2015 and is poised to expand KMI's footprint in key North American energy production regions.

Key Highlights

  • 1Kinder Morgan declared a Q4 2014 cash dividend of $0.45 per share, a 10% increase year-over-year.
  • 2The Q4 2014 dividend of $0.45 per share represents an annualized rate of $1.80, up from $1.64 in Q4 2013.
  • 3Full-year 2014 declared dividends totaled $1.74 per share, surpassing the company's budget of $1.72 per share.
  • 4Kinder Morgan agreed to acquire Hiland Partners, LP for approximately $3.0 billion, including debt.
  • 5The acquisition includes crude oil gathering and transportation pipelines and gas gathering/processing systems, primarily in the Bakken Formation.
  • 6The Hiland acquisition is expected to close in the first quarter of 2015, subject to customary closing conditions.
  • 7The transaction is with Hiland's founder, Harold Hamm, and certain Hamm family trusts.

Frequently Asked Questions

The declared dividend of $0.45 per share for Q4 2014 represents a 10% increase compared to the Q4 2013 dividend and exceeded the company's 2014 annual budget. This signals a commitment to shareholder returns and suggests strong financial performance.

Kinder Morgan is acquiring Hiland Partners, LP, which owns crude oil gathering and transportation pipelines and gas gathering and processing systems. These assets are primarily located in and serve the Bakken Formation in North Dakota and Montana.

The total purchase price for Hiland Partners is approximately $3.0 billion, which includes the assumption of debt. The company expects to close the transaction in the first quarter of 2015, pending customary closing conditions and regulatory approval.

The acquisition of Hiland Partners is a strategic move to expand Kinder Morgan's presence in key North American energy production regions, specifically the Bakken Formation. The acquired assets in crude oil gathering and gas processing will complement KMI's existing infrastructure.