Kinder Morgan Inc. (KMI) has completed its acquisition of El Paso Corp. (EP) and raised its expectations for cost savings associated with the merger.
Kinder Morgan now expects to see cost savings of $400 million a year to result from the El Paso deal, up from its previous estimates of $350 million in savings.
The company also said it expects to declare dividends of at least $1.40 a share for 2012, up from its previous plan of $1.35 a share.
Kinder Morgan, a pipeline transportation and storage company, last year agreed to acquire El Paso, operator of a network of interstate natural-gas pipelines in North America, for $21 billion. The acquisition was expected to create North America's largest natural-gas pipeline operator.
"We are delighted to close the El Paso transaction and we are very excited about the natural gas footprint that we now have in the United States with the additional of approximately 44,000 miles of natural gas pipelines from El Paso," said Kinder Morgan Chief Executive Richard D. Kinder. "We are bullish on the future of natural gas and believe that it will be the fuel of choice in America for many years to come."
Kinder Morgan named two El Paso directors, Anthony W. Hall Jr. and Robert F. Vagt, to serve on its board.
Shares were roughly flat in recent trading at $33.17. The stock is up 3.1% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; firstname.lastname@example.org