El Paso Corp's Acquisition and Controversy

El Paso Corp's Acquisition and Controversy was a pivotal moment in the company's history. The acquisition of El Paso Corp by Kinder Morgan in 2012 marked a significant shift in the company's trajectory.

El Paso Corp's assets were sold for $38 billion, a substantial sum that raised eyebrows among investors. The acquisition was completed in October 2012, following a lengthy review process.

Kinder Morgan, the acquiring company, was led by CEO Richard Kinder, a seasoned executive with a reputation for shrewd deal-making. The acquisition was seen as a strategic move to expand Kinder Morgan's pipeline network.

The acquisition was not without controversy, however, as some critics argued that it would lead to reduced competition in the energy sector.

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El Paso Corp. faced significant troubles in the early 2000s, with the company's stock price plummeting from $40 to $4 in just a few years. This was largely due to a series of bad investments and poor management decisions.

The company's acquisition of Williams Energy in 2002 was a major contributor to its financial woes. El Paso Corp. took on a significant amount of debt to finance the acquisition, which ultimately led to financial difficulties.

The company's troubles culminated in 2009, when El Paso Corp. filed for bankruptcy and was subsequently acquired by Kinder Morgan.

In 2001, El Paso bought Oscar Wyatt's Coastal Corporation, a diversified energy company that owned oil refineries, gas stations, and marketed oil, natural gas, and electricity.

El Paso began divesting itself of Coastal assets in 2001, needing the cash to repay the mounting debt it had acquired from following the same business model as Enron.

Oscar Wyatt and other shareholders sued El Paso for allegedly misrepresenting its intentions for Coastal assets prior to the merger in 2000.

El Paso's stock had fallen 87% from its February 2001 high of $75 a share by June 2003, and it had debts of $25 billion.

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In June 2003, Oscar Wyatt, along with El Paso investor Selim Zilkha, initiated a proxy fight to gain control of the El Paso Corporation and to wrestle control of the remaining assets.

El Paso agreed to pay $1.45 billion to settle a price gouging case on June 26, 2003.

In October 2011, Kinder Morgan acquired El Paso Corp. in a $21.1 billion deal.

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Price Fixing was a major issue for the El Paso Corporation.

In 2002, their shares plummeted after an administrative law judge ruled that the company helped drive energy prices to record highs in California between 2000 and 2001 by manipulating gas supplies.

Todd Geiger, a gas trader for El Paso, was prosecuted by the FERC for falsely making up 48 gas trades.

El Paso is now out of the energy trading business.

Tax avoidance is a significant issue for El Paso Corp. In 2008-2010, the company made a profit of $4.1 billion.

The company's lobbying efforts were substantial, with $2.94 million spent in 2011 alone.

El Paso's tax situation is quite unusual, as it received $41 million in income tax rebates despite its massive profit.

Criticism of El Paso Corp.'s troubles has been ongoing for years, with many investors and analysts expressing disappointment in the company's performance.

The company's debt load has been a major concern, with El Paso Corp. facing a staggering $17.8 billion in debt as of 2007.

Investors have also been critical of the company's lack of transparency, with some accusing El Paso Corp. of hiding behind its complex corporate structure.

El Paso Corp.'s struggles have led to a significant decline in its stock price, with the company's shares plummeting from a high of $41.50 in 2005 to just $10.50 in 2007.

The company's inability to generate sufficient cash flow has been a major factor in its decline, with El Paso Corp. reporting a net loss of $2.1 billion in 2007.

Many experts have questioned the company's decision to expand its operations, citing the high costs and risks associated with the venture.

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Kinder Morgan, Inc. has completed its acquisition of El Paso Corp. for approximately $21 billion.

The purchase includes the LNG terminal at Elba Island, and company officials say the merger will have no impact on its operations.

Kinder Morgan will continue to be known as Southern LNG, and management and staff will remain the same.

Combining Kinder Morgan and El Paso will make the company the largest midstream and the fourth largest energy company in North America.

The acquisition also includes the sale of El Paso's exploration and production business (EP Energy) to affiliates of Apollo Global Management, LLC and others for approximately $7.15 billion.

Most of the proceeds of that sale will be used to reduce the debt incurred by KMI to fund its purchase of El Paso.

Kinder Morgan anticipates cost savings in excess of $400 million per year, significantly higher than the previously announced projection of approximately $350 million.

KMI expects to declare dividends of at least $1.40 per share for 2012, up from the previously announced $1.35 per share.

Kinder Morgan plans to keep a regional office in Colorado Springs after the acquisition closes.

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The company will house its Western Natural Gas Pipeline operations in Colorado Springs and will have a significant number of employees in this location.

Local officials are thrilled with Kinder Morgan's decision to keep the office in Colorado Springs, which will ensure that the 440 employees currently working there will keep their jobs.

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