Kinder Morgan Energy Partners LP (KMP.N) a leading pipeline giant in the United States stated last Wednesday that their company is hoping to close a planned deal that will basically put all of the company’s publicly-traded units in just one roof that would close by the Thanksgiving holiday season in the United States.
In most of Kinder Morgan businesses, the company operates in a similar way as a big toll road function and then receives a fee for their services, while generally avoiding risk on commodity prices.
Kinder Morgan Energy Partners stated that KMI has already received all the needed regulatory approvals aside from its Registration Statement and Form S-4 which has not been declared effective yet by the Securities and Exchange Commission.
The said timeline comes right after Kinder Morgan Energy Partners stated last August that the company was pushing the said deal to respond to the concerns of investors regarding the company’s overall growth prospects and also the complicated financial structure. It is a $70 B deal that means that the company will eventually shed their master limited partnership’s overall structure.
Kinder Morgan Energy added that their Trans Mountain pipeline, which is part of a connected system that generally moves refined products and crude oil from Alberta to their terminals and refineries located on Canada’s West Coast that is expected to be already in service by the latter part of 2018’s third quarter. The company stated that the delay is because of a recent dispute with the Burnaby city in British Columbia.
The Thanksgiving holiday in the United States is on November 27, and Kinder Morgan Energy Partners still needs the said registration statement to be declared effective by the SEC even if the company already received the necessary regulatory approvals. This is to basically clarify that Kinder Morgan Energy Partners have not yet received the essential and outright regulatory approval.