Kinder Morgan To Buy NextEra Energy Partner's South Texas Assets, STX Midstream, For $1.815B
Portfolio Pulse from Benzinga Newsdesk
Kinder Morgan (KMI) is set to acquire South Texas assets, STX Midstream, from NextEra Energy Partners for $1.815 billion. KMI expects the investment to be accretive to its shareholders, with the purchase price representing a 2024 EBITDA multiple of 8.6 times and a long-term investment-to-EBITDA multiple of approximately 7.0-7.5 times.
November 06, 2023 | 9:45 pm
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POSITIVE IMPACT
The acquisition of STX Midstream is expected to be beneficial for Kinder Morgan's shareholders, indicating a potential positive impact on the company's stock.
The acquisition is expected to be accretive to KMI's shareholders, which means it should increase earnings per share and potentially boost the company's stock price. The purchase price represents a 2024 EBITDA multiple of 8.6 times and a long-term investment-to-EBITDA multiple of approximately 7.0-7.5 times, indicating a strategic and financially sound investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
NextEra Energy Partners is selling its South Texas assets, STX Midstream, to Kinder Morgan for $1.815 billion. The impact on NEP's stock is uncertain.
The sale of STX Midstream could provide NextEra Energy Partners with significant capital, but it also means the company is losing a revenue-generating asset. The net impact on the company's stock is uncertain without more information on how the proceeds will be used.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100