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.