Pre-merger market caps as of Wednesday were: Kinder Morgan Energy Partners at $45 billion, Kinder Morgan Management at $13.5 billion and El Paso Pipeline Partners at $10 billion, according to 24/7 Wall Street. Add that $68.5 billion to Kinder Morgan Inc.’s current market value of about $42 billion and the result is $110.5 billion, meaning the energy sector’s largest deal since Exxon (NYSE: XOM) bought Mobil in 1999 is creating the sector’s third-largest company. [These ETFs Love the Kinder Morgan News]
Dow components Exxon and Chevron (NYSE: CVX) and oil services giant Schlumberger (NYSE: SLB) are currently the only U.S. energy companies larger by market value than the combined Kinder Morgan.
That means if the Kinder Morgan deal was already complete, the combined company would pass EOG Resources (NYSE: EOG) for the fourth spot in the Energy Select Sector SPDR (NYSEArca: XLE), the largest energy ETF. EOG’s market cap is $53.7 billion, giving it a weight of nearly 3.9% in XLE.
AMJ Top-10 Holdings
Table Courtesy: J.P. Morgan