Kinder Morgan
Encyclopedia
Kinder Morgan, Inc. is an American energy company. It is also, through a subsidiary, the general partner
of and owner of many of the interests in Kinder Morgan Energy Partners, a publicly traded pipeline
and terminal limited partnership
.
Kinder Morgan Energy partners, L.P. is a leading pipeline transportation and energy storage company in North America. Kinder Morgan owns or operates approximately 26,000 miles of pipelines transporting primarily natural gas
, crude oil, and petroleum products. Kinder Morgan also owns about 170 terminals that store and handle products such as gasoline
, coal
, and petroleum coke
. Kinder Morgan is also the leading provider of carbon dioxide
, commonly called for enhanced oil recovery
projects in North America.
In addition to its role in the energy transportation and storage industry, Kinder Morgan operates in two major oil fields in Texas: the Yates Oil Field
and the SACROC Unit. Kinder Morgan produces approximately 55,000 barrels per day between the two areas, and claims to be the second-largest oil producer in Texas.
, selected by Morningstar as its 2005 CEO of the Year, receives a salary of $1.00 a year, no bonuses, no option grants, and no restricted stock
. Additionally Kinder Morgan claims that it does not spend money on corporate jets, first-class airfare, sports tickets or other expensive perquisites.
Kinder Morgan asserts that it committed to public safety, protection of the environment and operation of its facilities in compliance with all applicable rules and regulations.
totaling approximately $22 billion. Outside participants in the transaction include Fayez Sarofim
, Goldman Sachs Capital Partners
and Highstar Capital (then owned by American International Group
).
On September 8, 2010, a notice of a class action
settlement was filed in the District Court of Shawnee County Kansas. The proposed settlement is to resolve claims of breach of fiduciary duty owed to Kinder Morgan shareholders by persons involved with the buyout. The settlement payment is to be $200 million. A hearing on the settlement is scheduled for November 12, 2010.
On November 23, 2010, Kinder Morgan filed for an initial public offering. On February 3, 2011 Kinder Morgan disclosed that it would raise $2.2 billion in its IPO, which is expected during the week of February 7th.
In October 2011, Kinder Morgan Inc. agreed to buy El Paso Corp.
(EP) for $21.1 billion and will make the combined company have 67,000 miles (107,000 kilometers) of gas lines and eclipse Enterprise Products Partners LP (EPD) as the biggest U.S. pipeline operator. The transaction paid with share of Kinder Morgan, Kinder Morgan warrant and all of cash portion $11.5 billion through Barclays Plc
(BARC) borrowing.
General partner
General partner is a legal term used to describe a person who joins with at least one other person to form a business. A general partner has responsibility for the actions of the business, can legally bind the business and is personally liable for all the business's debts and obligations.General...
of and owner of many of the interests in Kinder Morgan Energy Partners, a publicly traded pipeline
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
and terminal limited partnership
Limited partnership
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...
.
Kinder Morgan Energy partners, L.P. is a leading pipeline transportation and energy storage company in North America. Kinder Morgan owns or operates approximately 26,000 miles of pipelines transporting primarily natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, crude oil, and petroleum products. Kinder Morgan also owns about 170 terminals that store and handle products such as gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
, coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
, and petroleum coke
Petroleum coke
Petroleum coke is a carbonaceous solid derived from oil refinery coker units or other cracking processes. Other coke has traditionally been derived from coal....
. Kinder Morgan is also the leading provider of carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...
, commonly called for enhanced oil recovery
Enhanced oil recovery
Enhanced Oil Recovery is a generic term for techniques for increasing the amount of crude oil that can be extracted from an oil field...
projects in North America.
In addition to its role in the energy transportation and storage industry, Kinder Morgan operates in two major oil fields in Texas: the Yates Oil Field
Yates Oil Field
The Yates Oil Field is a giant oil field in the Permian Basin of west Texas. Primarily in extreme southeastern Pecos County, it also stretches under the Pecos River and partially into Crockett County. Iraan, on the Pecos River and directly adjacent to the field, is the nearest town...
and the SACROC Unit. Kinder Morgan produces approximately 55,000 barrels per day between the two areas, and claims to be the second-largest oil producer in Texas.
Assertions
Chairman and CEO Richard KinderRichard Kinder
Richard Kinder is the CEO and Chairman of the Board of Kinder Morgan Energy Partners, an energy and pipeline corporation.-Biography:...
, selected by Morningstar as its 2005 CEO of the Year, receives a salary of $1.00 a year, no bonuses, no option grants, and no restricted stock
Restricted stock
Restricted stock, also known as letter stock or restricted securities, refers to stock of a company that is not fully transferable until certain conditions have been met. Upon satisfaction of those conditions, the stock becomes transferable by the person holding the award.One type of restricted...
. Additionally Kinder Morgan claims that it does not spend money on corporate jets, first-class airfare, sports tickets or other expensive perquisites.
Kinder Morgan asserts that it committed to public safety, protection of the environment and operation of its facilities in compliance with all applicable rules and regulations.
Leveraged Buyout
On August 28, 2006 Kinder Morgan announced that it would be taken private in a management-led leveraged buyoutLeveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
totaling approximately $22 billion. Outside participants in the transaction include Fayez Sarofim
Fayez Sarofim
Fayez Sarofim is a Coptic Egyptian American fund manager for a number of Dreyfus family stock funds. He is divorced with five children, and lives in Houston, Texas. With an estimated net worth of between $1.8 billion to $4 billion, Sarofim was ranked by Forbes as the 428-richest person in the world...
, Goldman Sachs Capital Partners
Goldman Sachs Capital Partners
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally....
and Highstar Capital (then owned by American International Group
American International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
).
On September 8, 2010, a notice of a class action
Class action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
settlement was filed in the District Court of Shawnee County Kansas. The proposed settlement is to resolve claims of breach of fiduciary duty owed to Kinder Morgan shareholders by persons involved with the buyout. The settlement payment is to be $200 million. A hearing on the settlement is scheduled for November 12, 2010.
On November 23, 2010, Kinder Morgan filed for an initial public offering. On February 3, 2011 Kinder Morgan disclosed that it would raise $2.2 billion in its IPO, which is expected during the week of February 7th.
In October 2011, Kinder Morgan Inc. agreed to buy El Paso Corp.
El Paso Corp.
El Paso Corporation , provides natural gas and related energy products and is one of North America's largest natural gas producers. It is headquartered in Houston, Texas. United States....
(EP) for $21.1 billion and will make the combined company have 67,000 miles (107,000 kilometers) of gas lines and eclipse Enterprise Products Partners LP (EPD) as the biggest U.S. pipeline operator. The transaction paid with share of Kinder Morgan, Kinder Morgan warrant and all of cash portion $11.5 billion through Barclays Plc
Barclays plc
Barclays PLC is a global banking and financial services company headquartered in London, United Kingdom. As of 2010 it was the world's 10th-largest banking and financial services group and 21st-largest company according to a composite measure by Forbes magazine...
(BARC) borrowing.
Companies
- Kinder Morgan Energy Partners, L.P., Houston, TX
- Kinder Morgan CO2 Company, Houston, TX
- Kinder Morgan Management, LLC, Houston, TX
- Kinder Morgan, Inc., Houston, TX
- Natural Gas Pipeline Company of America
- Kinder Morgan Terminals, Houston, TX
- Kinder Morgan Power Company, Lakewood, CO
- Kinder Morgan Louisiana Pipeline LLC (KMLP), Crowley, LA