The Zacks Analyst Blog Highlights: Kinder Morgan Energy Partners, Copano
Energy, Kinder Morgan, Sunoco Logistics Partners and ARIAD Pharmaceuticals
CHICAGO, Jan. 31, 2013
CHICAGO, Jan. 31, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Kinder Morgan Energy Partners
L.P. (NYSE:KMP), Copano Energy LLC (Nasdaq:CPNO), Kinder Morgan Inc.
(NYSE:KMI), Sunoco Logistics Partners L.P. (NYSE:SXL) and ARIAD
Pharmaceuticals, Inc. (Nasdaq:ARIA).
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Here are highlights from Wednesday's Analyst Blog:
Kinder Morgan to Take Over Copano
Kinder Morgan Energy Partners L.P. (NYSE:KMP) has plans to take over Copano
Energy LLC (Nasdaq:CPNO) for about $3.22 billion in stock. This would spread
Kinder Morgan's footprint in Texas, Oklahoma and Wyoming. The purchase price
will reach about $5 billion including debt.
Per the deal, Copano shareholders will get $40.91 per share, which is a 23.5%
premium to Copano's closing price of $33.13 on Jan 29. Shares of Kinder Morgan
- which agreed to pay 0.4563 share for each Copano share - closed at $89.66 on
Tuesday on the New York Stock Exchange.
The boards of directors of both the companies approved this unit for unit
agreement, which is expected to close in the third quarter of 2013. The deal
is yet to pass the customary closing conditions that include regulatory
approval and a vote of the Copano unitholders. With more than 14% stake
Copano's largest shareholder − TPG Capital Management LP − has already given
its green signal to the deal.
A midstream entity with operations mainly in Texas, Oklahoma and Wyoming,
Copano has throughput capacity of 2.7 billion cubic feet per day (Bcf/d), and
over 1 Bcf/d of processing capacity and 315 million cubic feet per day of
treating capacity. It has 9 processing plants and holds shares or operates
about 6,900 miles of pipelines.
This Copano acquisition will facilitate Kinder Morgan to pursue development
activities in the prolific Eagle Ford Shale areas of South Texas and also
allow it to enter the Barnett Shale Combo in north Texas as well as the
Mississippi Lime and Woodford shales in Oklahoma.
Kinder Morgan is one of the largest publicly traded master limited
partnerships (MLPs) and generally serves as a benchmark for the pipeline MLP
Kinder Morgan Inc.
(NYSE: KMI), one of the largest mid-stream energy companies in the U.S., owns
the partnership's general partner interest.
Last year's purchase of El Paso Corp for $38 billion positioned Kinder Morgan
as the largest midstream company in North America. It expanded its portfolio
further with the addition of Tennessee Gas Pipeline (TGP) and a portion of El
Paso Natural Gas (EPNG) with this acquisition. Various agreements and
modifications are lined up in the coming years with these assets, which are
expected to augment the partnership's revenues.
Kinder Morgan retains a Zacks Rank #3 (Hold), implying that it is expected to
perform in line with the broader U.S. equity market over the next one to three
Meanwhile, there are certain other energy pipeline operators like Sunoco
Logistics Partners L.P. (NYSE:SXL) that offer value and is worth buying now.
The partnership sports a Zacks Rank #2 (Buy).
ARIAD Closes Share Offering
ARIAD Pharmaceuticals, Inc. (Nasdaq:ARIA) recently announced the closure of
its previously announced public offering. ARIAD Pharma priced the public
offering of 15.3 million common shares at $19.60 per share, including 1.18
million shares sold to underwriters to cover the over-allotment options.
ARIAD Pharma plans to use the net proceeds from this offering – approximately
$310 million after deducting underwriting discounts and commissions and
estimated offering costs – to facilitate the sales, marketing, manufacturing
and distribution of its oncology candidate Iclusig (ponatinib) on approval.
The company also intends to use the net proceeds from the offering to develop
its other pipeline candidates.
We believe that investor focus will remain on the approval of Iclusig. The
candidate is under review in the US and EU for treating patients suffering
from resistant or intolerant chronic myeloid leukemia (CML) or
Philadelphia-chromosome positive acute lymphoblastic leukemia (Ph+ ALL). A
decision from the US Food and Drug Administration (FDA) is expected by Mar 27,
In Aug 2012, ARIAD Pharma submitted a Marketing Authorization Application
(MAA) for the candidate for the same indication to the European Medicines
Agency (EMA). ARIAD Pharma had requested accelerated assessment of the MAA for
the candidate, which was granted by the Committee for Medicinal Products for
Human Use (CHMP). ARIAD Pharma expects the candidate to be cleared in the EU
in the third quarter of 2013.
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