On the 12th of August 2014, Business for El Paso Pipeline Partners, L.P. (NYSE:EPB) improved by a significant 20.71 percent on shares worth 24M, following the declaration made by Kinder Morgan Inc. that they were planning on gaining ownership unsettled securities of equity regarding KMP, EPB and KMR.
Each unit holder of El Paso Pipeline Partners, L.P. (NYSE:EPB) shall be able to gain 9451 shares of KMI and for every unit of EPB will be delivered an amount of $4.65. According to this and the closing prices noted on the 8th of August 2014, the price of every unit is calculated to be about $38.79 and a premium equaling to 15.4% (as opposed to a premium equaling 11.2% taking into the account the prices on the 12th of July this year).
Richard Kinder, an American businessman and CEO of Kinder Morgan Energy Powers, who also gained acquisition of El Paso Pipeline Partners, L.P. (NYSE:EPB), may succeed in creating a valuable market for the company for gas, oil and coal resources. He has made an agreement, the details of which are yet to be disclosed, according to which, unlike his previous concentration on pipeline framework and system, he would now emphasize on the natural resources of coal, natural gas and oil. This agreement will consequently elevate the position of El Paso Pipeline Partners, L.P. (NYSE:EPB) in the market for these resources as well as refined products and crude oil.
Other coal companies such as Cliffs Natural Resources Inc. (NYSE:CLF), Peabody Energy Corporation (NYSE:BTU) and Arch Coal Inc. (NYSE:ACI) have been, in recent times, showing remarkable results. This is an extraordinarily surprising situation since less than a month ago twelve of the states in the US have registered a case against the management under Obama. They are adamant on ignoring the existence of a proposal offered by the Environmental Protection Agency that focuses on the climatic changes and air pollution caused by the presence of power plants fueled by coal. These proceedings are conducted by West Virginia, also including numerous states of the US that produce huge amounts of coal everyday and also use it as a source of producing electricity.
The chief executive of Peabody Energy Corporation (NYSE:BTU), Greg Boyce has commented on the current controversies against coal and coal production and asked all coal manufacturers to make special efforts in terms of money and time to prevent any damage to the industry. These debates are becoming common and movements such as the Global Fossil Fuel Divestment Campaign are a big threat to the industry. Greg Boyce is also hopeful that China will not be bothered about the environmental issues regarding coal production and is predicting a growth in the demand of coal by 700 million tonnes in the coming three years.
Greg Boyce is of the opinion that these campaigns are being carried out without sufficient awareness of the situation or proper investigation. He said that he would like to see all coal manufacturers go an extra mile and try to let the general population know how the coal industry of this era is very less about environmental hazards and much more about the benefits it has concerning energy production.
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