Kinder Morgan Inc (NYSE:KMI) Buys Out Royal Dutch Shell Plc (ADR) (NASDAQ:RDS.A) Stakes In Liquefaction Joint Venture


Dallas, Texas 07/16/2015 (Financialstrend) – Kinder Morgan Inc (NYSE:KMI) has struck a deal that allows it to acquire 100% of stake in its ongoing joint venture with Royal Dutch Shell Plc (ADR) (NASDAQ:RDS.A). The agreement means Kinder Morgan will acquire the remaining 49% stake in Elba Liquefaction Company currently owned by Shell.

 Additional Investment

 Kinder Morgan plans to invest an additional $630 million in Elba Liquefaction Company bringing its total investment in the project to $2.1 billion.  The acquisition brings Kinder Morgan Inc (NYSE:KMI) joint venture investments to $22 billion from first quarter levels of $18.3 billion.

The ELBA Liquefaction project is made of 10 small-scale liquefaction units that are to be integrated with the existing Elba Island facility with a view of enabling rapid construction. Construction of the Elba project should begin in the fourth quarter with production set to begin in 2017.

The company has been busy on the M&A front with analysts waiting to hear what plans it has for the wave of big energy deals when it holds it conference call. The deal reflects the growing appetite in the fast-growing natural gas logistics and exports business as oil prices continue to drop.

Dividend Increase

 The acquisition of the remaining stakes in the Liquefaction project comes on Kinder Morgan Inc (NYSE:KMI)’s Board of Directors approving a 2.1% dividend increase. The increase means shareholders stand to generate up to 49 cents a share up from 48 cents a share in the first quarter. The increase also comes with the confirmation that the company is on track to meet its full-year dividend guidance of $2 a share.

 During the second quarter, Kinder Morgan Inc (NYSE:KMI) generated a profit of $333 million up from $284 million reported last year same quarter. However, earnings per share dropped to 15 cents a share attributed to more shares in the market.  Revenue was also down by 12% coming in at $3.46 billion

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