Ahead of Earnings, Kinder Morgan Buys Product Terminals for $350 Million

Energy

Published: October 20, 2015 12:05 pm

Last Updated: April 27, 2020 3:21 pm

A day ahead of its scheduled announcement of third-quarter 2015 results, Kinder Morgan Inc. (NYSE: KMI) announced on Tuesday that it had agree to acquire 15 refined products terminals and associated U.S. infrastructure from a division of BP PLC (NYSE: BP) in a transaction valued at about $350 million.

Kinder Morgan and BP Products North America will form joint venture that will own 14 of the 15 terminals. Once the transaction is completed, now expected in the first quarter of next year, Kinder Morgan will own 75% of the JV and one of the terminals and will be the operator and marketer. The assets are located in the Midwest, the Northeast, the Southeast and on the West Coast.

As part of the transaction, BP will enter into commercial agreements securing long-term storage and throughput capacity from the JV, which plans to market additional capacity to third-party customers.

Before any of this transpires, Kinder Morgan will report third quarter results after markets close on Wednesday. Analysts are expecting earnings per share of $0.19 on revenues of $3.82 billion. Kinder Morgan has missed estimates in three of the past four quarters, but it is difficult to tell whether that’s due to the company’s relatively recent conversion from a master limited partnership and the usual confusion that causes among analysts, or if there’s something wrong with the business. We’ll look at this in more detail in an earnings preview.

Shares of Kinder Morgan traded down less than 0.1% around noon Tuesday, at $31.67 in a 52-week range of $25.81 to $44.71.

ALSO READ: 5 Big Oil and Gas Stocks Analysts Want You to Buy Now

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps