Pembina adds key assets

Article Excerpt

PEMBINA PIPELINE $48.92 (Toronto symbol PPL; Shares outstanding: 502.4 million; Market cap: $25.0 billion; TSINetwork Rating: Average; Dividend yield: 5.2%; www.pembina.com) will now acquire Kinder Morgan Canada (Toronto symbol KML) for $2.3 billion. That firm owns crude oil storage and terminal businesses at Edmonton and Vancouver wharves, and a terminal in the Port of Vancouver that imports and exports bulk commodities such as grains and minerals. (Note—the deal does not include the controversial Trans Mountain pipeline, which Kinder Morgan Canada sold, along with its proposed second line, to the federal government last year for $4.5 billion.) In a separate transaction, Pembina will also buy the U.S. portion of the Cochin pipeline from Kinder Morgan for $1.546 billion U.S. in cash. That will increase the company’s stake in the pipeline to 100%. Cochin pumps natural gas liquids between Alberta and Chicago. Following those transactions, Pembina plans to increase its monthly dividend by 5.0% The new annual rate $2.52 yields a high 5.2%. Pembina Pipeline is a..

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