The Zacks Analyst Blog Highlights: Kinder Morgan Energy Partners, Copano Energy, Kinder Morgan, Sunoco Logistics Partners and ARIAD Pharmaceuticals
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).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
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 group.
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 months.
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, 2013.
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.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.