Aug. 31, 2009 (Baystreet.ca) --
Pipeline transportation and energy storage company Kinder Morgan Energy Partners LP (KMP) said Monday that it has entered into an agreement to buy the natural gas treating business from Crosstex Energy for about $266 million.
The deal also includes purchase of the working capital from the plants (subject to certain closing adjustments), which are primarily located in Texas and Louisiana, but includes other facilities in Mississippi, Oklahoma, Arkansas and Kansas.
In all, Kinder Morgan is purchasing a total of 290 290 amine-treating and dew-point control plants.
Kinder Morgan Energy Partners shares were down $.36 to $52.17, or .69% in early trading.
The Bottom Line
We recently removed shares of KMP from our "recommended" list on Aug.11, when the stock was trading at $52.93. The company has a 8.00% dividend yield, based on Friday's closing stock price of $52.53. The stock has technical support in the $46-48 price area. If the shares can firm up, we see overhead resistance around the $55 price level. We would remain on the sidelines for now.
Kinder Morgan Energy Partners LP (KMP) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
