Kinder Morgan Inc (NYSE:KMI): Multi-Year Contracts and Corporate Update


Dallas, Texas 12/29/2014 (FINANCIALSTRENDS) – Kinder Morgan Inc (NYSE:KMI) is a midstream energy company that has delivered more than 18.5% returns year-to-date. The company operates terminals and pipelines to facilitate transport of natural gas, gasoline, crude oil and other products.

Despite volatility in global crude prices and bearing short to medium-term outlook, the company hit a 52-week high of $42.81 on Friday. Its previous close resembles close to 44% gains from its 52-week low of $29.73.

Kinder Morgan recently inked long-term transportation and storage agreements with Cheniere Energy, Inc. (NYSEMKT:LNG). The company also filed Form 8-K pertaining to its equity distribution agreement with certain sales agents.

Multi-Year Contract

Kinder Morgan Inc (NYSE:KMI) recently announced that three of its subsidiaries have entered into multi-year storage and transportation agreements with Corpus Christi Liquefaction, LLC, a Cheniere subsidiary. KMI subsidiaries include Kinder Morgan Tejas Pipeline, Kinder Morgan Texas Pipeline and Tennessee Gas Pipeline Company.

The company will expand its Texas intrastate pipeline system to provide 250,000 dekatherms per day and its Tennessee pipeline system to provide 300,000 dekatherms per day of firm transportation. In addition, KMI will also provide 3 billion cubic feet of natural gas storage capacity to facilitate the LNG export facility near Corpus Christi.

Upon completion of certain conditions, the natural gas transportation service can be increased to 800,000 dekatherms per day.

Equity Distribution Agreement

Kinder Morgan Inc (NYSE:KMI) also recently entered into an equity distribution agreement with Credit Suisse Securities (USA) LLC, UBS Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., and Mitsubishi UFJ Securities (USA), Inc. as Sales Agents.

Pursuant to the agreement, KMI may sell shares of its Class P common stock for an aggregate offering price of up to $5 billion. Sales will be made only by one of the Sales Agents in block transactions or as agreed between KMI and the sales agents.