Kinder Morgan (KMI) Stock Surging on Pipeline Divestures
NEW YORK (TheStreet) -- Shares of Kinder Morgan (KMI) - Get Report are rising 3.02% to $20.82 this afternoon after closing the sale of its 50% stake in the Parkway Pipeline to Valero Energy (VLO), according to a company statement.
Over 19 million shares of the company have been traded so far today, vs. the stock's average of 15.79 million shares per day.
Valero Energy now owns a 100% stake in the 141-mile pipeline. The deal was completed for an undisclosed amount, but Valero said in a company statement that it funded the transaction in cash.
Kinder Morgan, a Houston-based energy infrastructure company, also recently sold half its pipeline system Southern Natural Gas for $1.47 billion to Southern Co. (SO).
Kinder Morgan hopes its recent sales will help diminish the company's $40.2 billion debt.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.
Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, TheStreet Ratings finds weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: KMI
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.