El Paso Pipeline Partners LP

Adage Capital exited a position in Kinder Morgan Inc (KMI) in the third quarter. The position accounted for 0.37% of the fund’s total 2Q portfolio.

EPD is a leading midstream service provider in the natural gas, natural gas liquids (or NGLs), crude oil, petrochemicals, and refined products sectors.

Recognizing there was no need for LNG in the U.S., Chenier’s CEO, Charif Souki, opted to switch from importing LNG to exporting it. This was an ambitious decision given the need for regulatory approval before the company could begin exporting LNG.

El Paso Pipeline Partners (EPB) is a master limited partnership (or MLP) that owns and operates natural gas transportation pipelines, storage, and other midstream assets.

This deal will make Kinder Morgan the largest energy infrastructure company in North America and the third-largest energy company in North America, following only Exxon Mobil and Chevron.

Kinder Morgan Energy Partners LP (KMP) is the largest pipeline transportation and energy storage company in North America.

The return on shareholders’ equity, their expanding profit margins, and growth rates generated by Kinder Morgan speak to the job that management is doing.

The primary cash inflows for KMI are from its general and limited partner stakes in KMP and EPB. KMI directly and indirectly owns approximately 10% of KMP.

The shale oil revolution makes KMI a long-term growth opportunity, but investors have lost confidence in the story after a FERC rate revision caused growth to slow in 2014.