What happens next is a buying spree.
It may be difficult to identify potential targets. There are more than 120 MLPs in the pipeline arena with a combined market cap of $875 billion -- the buffet table is too big even for a man with Rich Kinder’s financial appetite. Still, we can speculate.
As I wrote yesterday, a key to the future may be Kinder Morgan’s own "asset map," which shows a big hole in the Bakken Field of North Dakota, and limited participation in the eastern Marcellus gas field. The Bakken is where I think KMI is going first, because the state remains short on oil and gas infrastructure, as Gov. Jack Dalrymple noted at his second "Pipeline Summit" in June.
I wrote about Crestwood just last month. CMLP made two acquisitions during 2013, becoming a major Bakken midstream player. The news peg was a brine leak -- new investment would shore up operations quickly. Crestwood has a market cap of about $4 billion, it would be accretive to earnings, and its debt levels of 25% aren’t bad, either. A Crestwood deal would immediately make KMI a major player in the business of moving oil, gas and liquids in the Bakken, which is what Kinder has acknowledged he wants to be.