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

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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 (CEQP - Free Report) . 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 (WLL - Free Report) , 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.

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