Back to top

Image: Bigstock

Kinder Morgan (KMI) Inks $1.2B Accord to Acquire Stagecoach

Read MoreHide Full Article

Kinder Morgan, Inc. (KMI - Free Report) has entered into an agreement to acquire Stagecoach Gas Services LLC (Stagecoach). The $1.225-billion deal is likely to consummate in the third quarter of this year, awaiting regulatory approval under Hart-Scott-Rodino.

It is to be noted that Stagecoach is a joint venture between Consolidated Edison, Inc. (ED - Free Report) and Crestwood Equity Partners LP . Stagecoach comprises four natural gas storage facilities along with networks of natural gas pipelines – spanning across 185 miles. Importantly, the storage facilities have a total working gas capacity of 41 billion cubic feet, which is FERC-certificated. Moreover, the pipeline networks have several interconnects to major interstate natural gas pipelines that comprise Kinder Morgan’s affiliate Tennessee Gas Pipeline.

The midstream energy firm expects the acquisition to broaden its scope of services by connecting Northeast demand regions with natural gas supply sources. It can be said that the acquisition has placed Kinder Morgan in a position to capitalize on growing natural gas demand, which is a source of clean energy and has long being utilized as a fuel for providing heat and hot water to businesses and homes in the Northeast.

The company expects the acquisition to prove immediately accretive to shareholders.

Headquartered in Houston, TX, Kinder Morgan – a leading North American energy infrastructure firm – currently carries a Zacks Rank #3 (Hold). A better-ranked player in the energy space is Whiting Petroleum Corporation , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Zacks Names “Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Consolidated Edison Inc (ED) - free report >>

Kinder Morgan, Inc. (KMI) - free report >>

Published in