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Wednesday's Energy Stocks: Kinder Morgan Canada jumps 31.60% on merger news

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Wednesday's Energy Stocks: Kinder Morgan Canada jumps 31.60% on merger news

Markets recorded gains on Wednesday, Aug. 21, following the release the minutes of the Federal Reserve's July 31 meeting which signaled that most Fed officials viewed the central bank's policy easing as a "mid-cycle adjustment" rather than the first of several interest rate cuts.

The Dow Jones Industrial Average rose 0.93% to 26,202.73, and the S&P 500 added 0.82% to 2,924.43.

Kinder Morgan Canada Ltd. shares soared 31.60% on more than 32x average trading volume on the Toronto Stock Exchange to settle at C$14.45, following news that it will be sold by Kinder Morgan Inc. to Pembina Pipeline Corp. for about C$2.3 billion, or C$15.02 per share.

Including a U.S. portion of the Cochin condensate pipeline system, which will also be acquired by Pembina, the total deal value is about C$4.35 billion.

Pembina's leaders said the deal would add high-quality assets to the company's portfolio that would help it thrive in the long term and continue shareholder payouts even through economic downturns.

Kinder Morgan Inc. closed up 1.24% on average volume to $20.39, while Pembina shed 0.37% on roughly double average volume on the Toronto Stock Exchange to finish at C$49.09.

Tellurian Inc. gained 9.67% in brisk trading to close at $8.28. Its subsidiary Permian Global Access Pipeline LLC asked the Federal Energy Regulatory Commission to take an early look at a proposed pipeline that would run from the Waha gas hub in Texas to a point near Lake Charles, La.

Gulfport Energy Corp. moved up 0.33% on light volume to end at $3.03, following a downgrade from S&P Global Ratings by one notch to B+ from BB-. The rating agency maintained the company's stable outlook going forward. S&P Ratings lowered the price it uses for oil and gas credit assessments on July 29 and warned that shale gas producers, in particular, could expect downgrades.

Among other oil and gas companies, Hess Corp. added 3.56% to $64.83 in average trading while EQT Corp. slid 3.50% to $11.86 and Halliburton Co. dropped 2.41% to $18.60, both in below-average activity.

The S&P 500 Energy Sector closed 0.75% higher to 427.08, and the Alerian MLP Index increased 0.24% to 233.12.

In the electric and diversified utilities sector, UGI Corp. completed its acquisition of AmeriGas Partners LP. UGI shares settled up 1.24% in heavy trading to $49.08.

Also recording gains, PG&E Corp. advanced 5.06% on strong volume to $12.25; Avista Corp. added 2.34% to $47.06 in below-average trading; NRG Energy Inc. gained 1.36% on light volume to $35.78; and Entergy Corp. added 1.32%, also in light trading, to $111.67.

The S&P 500 Utilities Index was up 0.67% to 313.61.

Market prices and index values are current as of the time of publication and are subject to change.