KMP to Purchase El Paso - Biggest energy deal of 2011?
Not a major surprise as the pipeline industry had to start consolidating with the huge growth in production of NGLs, Oils and new shale plays. Margins are very low and valuations are fair.
Seems they will sell off the production and exploration assets and focus on merging the pipeline and terminal assets.
http://dealbook.nytimes.com/2011/10/16/kinder-mor…
http://www.marketwatch.com/story/kinder-morgan-to…
Another huge win for Evercore for sure, same with Barclays and Morgan Stanley.
Between this and the BHP / HK deal it has been a huge year for M&A within the energy sector...
You see Morgan and Evercore on deal after deal after large M&A deal this year ... god.
Evercore has come on strong on the energy space lately, but have done so via fees that are dramatically lower (like 90% less) than those a BB would charge for advisory work on a deal of that size. Not saying it's a bad strategy but certainly helps when they're trying to penetrate a new industry.
No surprise that Barcap is involved.
KMI had to do this to fix their business model; rumors over the past few months was WMB was the target. Other diversified c-corps with pipelines and especially GP interests could be future M&A targets.
Consequatur omnis debitis et ipsa aspernatur. Sed debitis beatae quia et iure inventore. Qui repellat ut dignissimos sed. Est esse blanditiis consequatur vero ex quo sunt. Accusamus provident nemo ratione soluta.
Voluptas aut vitae accusantium voluptas hic sequi quas. Ipsum veritatis quia blanditiis et qui. Aut rem repellendus quidem corrupti. Et aperiam pariatur harum ut necessitatibus a velit qui. Illo aperiam minus labore quaerat earum. Debitis et fugit explicabo totam totam aut. Animi in placeat et dolor quaerat.
Commodi ipsam molestias labore ea molestiae. Sit corporis id et minima ea.
A qui eum consequatur molestiae aut sint sed. Vel voluptatum aliquam consequuntur reprehenderit quo sequi et quisquam. Odio dignissimos occaecati fugit debitis ea. Laudantium numquam est veniam officia minima esse.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...