Home Business Kinder Morgan, Chevron, & Shell: Natural Gas M&A of the Day

Kinder Morgan, Chevron, & Shell: Natural Gas M&A of the Day

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.


Kinder Morgan Energy Partners LP (NYSE:KMP), Chevron, and Shell are major players in the oil and natural gas industry. This week has held some big moves by the companies, regarding assets in the field.

Kinder Morgan, Chevron, & Shell: Natural Gas M&A of the Day

Kinder Morgan Energy Partners LP (NYSE:KMP) announced on Monday that they had managed to negotiate the sale of assets to Tallgrass Energy Partners for $1.8 billion in cash. This sale was a necessary move for Kinder Morgan Inc (NYSE:KMI) to receive approval for its massive buyout of El Paso Corp. Kinder Morgan Inc. is the owner of both general and limited partner interests in Kinder Morgan Energy Partners LP (NYSE:KMP), and the Houston based company reached a deal with the FTC in March, which will allow them to sell some of their Rocky Mountain assets, in order to get the approval for the El Paso buyout. The acquisition of El Paso was finalized in may of this year.

The assets to be sold will include Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Co., the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, as well as its 50% stake in the Rockies Express Pipeline. This sale will be made to the Overland Park, Kansas based company, Tallgrass Energy, according to the Associated Press and the Washington Post.

Kinder Morgan Energy Partners LP (NYSE:KMP) has indicated that Tallgrass plans to keep the employees of the companies involved with the sale.

There is another stir in the natural gas industry as well this week. Chevron Corporation (NYSE:CVX) also came to an agreement with Royal Dutch Shell plc (NYSE:RDS.B) on Monday, that they would swap assets in 2 multibillion dollar natural gas assets in Australia.

Chevron Corporation (NYSE:CVX) places 2nd, only toExxon Mobil Corporation (NYSE:XOM), by market value, when ranked with other American companies. They have decided to transfer their 17.5% stake in the proposed Browse export terminal in Western Australia, to Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B). This will be swapped for Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B)’s stake in 2 natural gas fields in the Wheatstone export terminal, plus $450 million in cash.

Australia has proven to be crucial for both of these companies, when it comes to meeting the world’s nat gas needs. There are nearly a dozen export terminals planned for the coastline, and Australia will bypass Quatar as the world’s top exporter of liquefied nat gas by 2020.

Both companies face issues with environmental groups, regarding their prospective plans for each of these areas, however, they both are very positive that the move is in the right direction. According to Ross Kelly, of nasdaq.com, Australia is geographically placed in the perfect place to ship natural gas to Asia, which is expected to become the worlds largest market.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.