NEW YORK (TheStreet) -- Kinder Morgan Energy Partners (KMP) surged to a new 52-week high of $98.67 on Monday after Kinder Morgan (KMI) announced it would combine all of its oil and gas pipeline and storage companies into one entity.
Kinder Morgan, Kinder Morgan Energy Partners, Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB) will all trade under the KMI symbol as part of the Kinder Morgan umbrella. The new entity will be the fourth-largest U.S. energy company by market value. The four companies' combined market value at the closing bell Friday was $92 billion.
Kinder Morgan will spend $71 billion, including $27 billion in assumed debt, to purchase the three other companies.
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Kinder Morgan Energy Partners was up 14.4% to $91.91 at 10:22 a.m. More than 14 million shares had changed hands, compared to the average volume of 1,078,830.
Separately, TheStreet Ratings team rates KINDER MORGAN ENERGY -LP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KINDER MORGAN ENERGY -LP (KMP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."