Kinder Morgan is consolidating its units into a single company in a $71 billion deal that will create the third largest energy company in North America. The company will no longer use a Master Limited Partnership structure, instead combining with Kinder Morgan Energy Partners, Kinder Morgan Management and El Paso Pipeline Partners into a single C-corporation. According to a presentation by the company, Kinder Morgan says benefits of a C-corporation include a lowered cost of capital, more competitive acquisition currency and significant income tax savings. Bank of America Merrill Lynch analyst Gabe Moreen upgraded Kinder Morgan to Buy from Neutral, citing numerous benefits to consolidation.

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