Kinder Morgan Inc. (KMI) has completed its acquisition of El
Paso Corp. (EP) and raised its expectations for cost savings
associated with the merger.
Kinder Morgan now expects to see cost savings of $400 million a
year to result from the El Paso deal, up from its previous
estimates of $350 million in savings.
The company also said it expects to declare dividends of at
least $1.40 a share for 2012, up from its previous plan of $1.35 a
share.
Kinder Morgan, a pipeline transportation and storage company,
last year agreed to acquire El Paso, operator of a network of
interstate natural-gas pipelines in North America, for $21 billion.
The acquisition was expected to create North America's largest
natural-gas pipeline operator.
"We are delighted to close the El Paso transaction and we are
very excited about the natural gas footprint that we now have in
the United States with the additional of approximately 44,000 miles
of natural gas pipelines from El Paso," said Kinder Morgan Chief
Executive Richard D. Kinder. "We are bullish on the future of
natural gas and believe that it will be the fuel of choice in
America for many years to come."
Kinder Morgan named two El Paso directors, Anthony W. Hall Jr.
and Robert F. Vagt, to serve on its board.
Shares were roughly flat in recent trading at $33.17. The stock
is up 3.1% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208;
kristin.jones@dowjones.com