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Let Williams Partners L.P. Be Your Kinder Morgan Alternative

By Casey Hoerth:

The news that Kinder-Morgan would be merged into one big, corporate entity has gotten a mixed reaction among retail investors here on Seeking Alpha. Of course, many are rightfully pleased about the run-up in share price: Since the announcement of the merger both Kinder Morgan Partners (NYSE:KMP) and Kinder Morgan Inc. (NYSE:KMI) have seen shares leap up by some 20%.

The benefits of Kinder Morgan’s merger have been talked about several times. The merger will result in a lower cost of equity for the combined company, and this will allow Kinder Morgan to be more competitive in acquisitions. Going forward, Kinder Morgan should achieve double-digit distribution growth, up from merely five percent at Kinder Morgan Partners.

However, some investors on Seeking Alpha are not at all happy. One commenter mentioned how unhappy he was that Kinder Morgan would no longer be a partnership and that his income from Kinder Morgan

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