Based in Houston, KMP began with a few assets, 175 employees and an enterprise value of approximately $325 million. Mr. Kinder and Mr. Morgan had a vision to build a different type of energy company by utilizing the master limited partnership (MLP) financial structure as a growth vehicle, something that had never been done before. This approach was highly successful, and KMP became the largest publicly traded pipeline limited partnership in America based on enterprise value.
In its early years, KMP grew primarily through acquisitions, purchasing assets that included refined petroleum pipelines, CO2 production fields and transportation pipelines, intrastate natural gas pipelines and bulk and liquids terminals. As time went on, the majority of KMP’s growth came through expansions and new-build projects.
Below is a detailed timeline of how KMP evolved into the KMI we know today. KMI is now one of the largest energy infrastructure companies in North America. The company owns an interest in or operates approximately 83,000 miles of pipelines and 147 terminals, and has approximately 11,000 employees across North America.
1999: Mr. Kinder and his management team took the reins of KN Energy, an integrated natural gas pipeline company based in Lakewood, Colorado. KN’s roots dated back to 1936 when, as a local distribution company, it provided natural gas service to small communities and rural areas in Kansas and Nebraska. One of the largest assets acquired in this deal was Natural Gas Pipeline Company of America (NGPL), which serves the high-demand Chicago market. KN Energy became Kinder Morgan, Inc. (NYSE: KMI), Kinder Morgan’s second publicly traded company. Today, KMI owns 50 percent of and operates NGPL.
2001: A third publicly traded Kinder Morgan company was formed in 2001 – Kinder Morgan Management, LLC (NYSE: KMR) – to facilitate the institutional ownership of KMP equity. KMR was a limited liability company, and its only significant assets were the partnership units it owned in KMP.
2005: In August 2005, KMI purchased Terasen, Inc. in Canada for approximately $5.6 billion. This transaction dramatically broadened the company’s footprint in Canada and gave it access to the oilsands via the Trans Mountain Pipeline.
2006: Mr. Kinder spearheaded a management-led buyout to take KMI private. The transaction closed in May 2007.
2011: On February 11, 2011, KMI once again began trading on the New York Stock Exchange following the largest private equity-backed U.S. initial public offering in history. The IPO issued nearly 110 million shares and raised approximately $3.3 billion.
2012: In May 2012, KMI completed an approximately $38 billion acquisition of El Paso Corporation. The transaction made Kinder Morgan the largest midstream and one of the largest energy companies in North America, as well as the largest natural gas network operator in North America. As part of the transaction, Kinder Morgan added a fourth publicly traded entity to its family of companies – El Paso Pipeline Partners L.P (NYSE: EPB).
2013: In May 2013, KMP completed an approximately $5 billion acquisition of Copano Energy, which enabled the company to significantly expand its midstream services footprint and offer a wider array of services to its customers.
2014: In August 2014, KMI announced that it would acquire all of the publicly held shares/units of KMP, KMR and EPB in an approximately $76 billion transaction. The transaction closed on November 26, 2014. Kinder Morgan is now one publicly traded company with a ticker on the New York Stock Exchange of KMI.
2017: In May 2017, KMI completed an initial public offering of Kinder Morgan Canada Limited (TSX: KML). The proceeds of the offering were used by KML to indirectly acquire from KMI an approximate 30 percent interest in a limited partnership that held the Canadian business of Kinder Morgan.
2019: In December 2019, the Pembina Pipeline Corporation acquired the U.S. portion of the Cochin Pipeline as well as the outstanding common equity of KML, including the 70 percent majority voting interest held by KMI.