Kinder Morgan Inc. stock jumped 9 percent last week after news that oil and gas pipeline storage companies controlled by Kinder Morgan will combine.
Known locally for its CO2 production facilities, Kinder Morgan was the biggest gainer in the S&P 500 on Aug. 11. The company rose $3.25, or 9 percent, to $39.37.
Kinder Morgan Inc. said it will acquire El Paso Pipeline Partners, Kinder Morgan Energy and Kinder Morgan Management.
KMI said it expects 10 percent annual dividend growth from 2015 to 2020. The deal involves about $70 billion in transaction value, and closing is expected this year.
U.S. stocks gained last week as investors focused on corporate news instead of geopolitical worries. Banana seller Chiquita Brands International, for example, soared after the company received a $611 million buyout offer.
“We’re hopeful that geopolitical tensions will ramp down,” said Jim Russell, an investment director at US Bank. “The fundamental economic backdrop remains pretty firm, even though investment sentiment remains less than certain.”
Kinder Morgan is the top transporter and marketer of carbon dioxide in North America. It delivers 1.3 billion cubic feet per day through 1,300 miles of pipelines.
CO2 injection is used to boost production in mature oil fields. CO2 is piped from southwestern Colorado to west Texas, where it is injected into oil fields. The Permian Basin produces 20 percent of the total oil production in the U.S., excluding Alaska.
The Associated Press contributed to this story.
