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Other MLPs to Gain as Cash May Exit Kinder Morgan

http://blogs.barrons.com/incomeinvesting/2014/08/25/other-mlps-to-gain-as-cash-may-exit-kinder-morgan-stanley/

As I noted when the Kinder Morgan situation happened, it will be interesting to see how MLP indexes are restructured and which stocks may benefit.

Comments

  • Whether this is true or not nobody knows. What we do know is that for anyone who jumped on the Richard Kinder or Kinder Morgan train early, betting against him has been to their detriment.
  • edited August 2014
    Mark said:

    Whether this is true or not nobody knows. What we do know is that for anyone who jumped on the Richard Kinder or Kinder Morgan train early, betting against him has been to their detriment.

    Well, I would think at the very least KMP, KMR and El Paso (whatever the ticker is) are going to no longer exist. Are the weightings of other MLPs in the index increased and therefore, ETFs/funds have to buy?

    I agree with you on Kinder, although the parent will not be as large a holding for me as the MLP was.
  • edited August 2014
    ALERIAN COMMENTS ON KINDER MORGAN: Alerian Monday Mailbag: 08-18-2014

    Q: What are your thoughts on the Kinder Morgan transaction?
    A: One, the rest of the MLP universe trades up... and some portion of after-tax proceeds to KMP and EPB unit holders will find their way into other MLPs...

    Q: What are the transaction’s implications for the Alerian Index Series?
    A: ... All we can say at the moment as it relates to this transaction is that, as always, we will rebalance each of our indices in accordance with the publicly available index methodology guides at that time.

    [See above link/site for full comments.]
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