File - Richard D. Kinder, Chairman and Chief Executive Officer of Kinder Morgan Energy Partners LP, addresses the Reuters Energy Summit in Houston in this June 2, 2009. REUTERS/Richard Carson
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Houston billionaire Richard Kinder is consolidating his pipeline empire to boost it for growth as the U.S. shale drilling boom opens up $1.5 trillion in potential purchases and expansion projects.Kinder has lagged rivals such as Williams Cos. (WMB) and Enterprise Products Partners LP (EPD) during the past three years, generating a 73 percent total return compared with 221 percent for Williams investors and Enterprise's 130 percent return.Kinder plans to raise its 12-month dividend by 16 percent next year to $2 a share and to raise the payouts by 10 percent annually through the end of the decade.Kinder, who takes a $1-a-year salary and earns no annual bonus from any of the four companies, will see his annual pay from dividends increase by more than $100 million thanks to the deal, according to data compiled by Bloomberg.Beginning in 2015, Kinder will earn almost $500 million a year from the $2-a-share dividend he's pledged to investors as part of the deal.
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