Contrary to recent trends of corporations creating MLPs by spinning off midstream assets into the tax-advantaged structure, pipeline titan Richard Kinder revealed his plan to put all of his eggs into one $71 billion corporate basket.

Expected to close in fourth-quarter 2014, the parent company would own all the currently outstanding common units of Kinder Morgan Energy Partners LP, El Paso Pipeline Partners LP, and Kinder Morgan Management.

Through a series of purchases, Kinder has a 24% stake in the parent company. It’s been reported he made $1.5 billion on the initial price movement. Shares of Kinder and its affiliates were bouncing mid-morning Monday. Kinder Morgan Inc. shares were trading up more than 8% at $39.06 each.

A fresh slate of questions emerge from this deal including expectations for interest rates and whether the ability still exists for capturing a generous valuation with the MLP structure, analysts at Simmons & Company International in Houston said in a Monday note.

One thing is certain: The move eliminates the general partner’s (GP) incentive distribution rights, which some critics had used against Kinder Morgan, suggesting the GP was taking too much profit from the MLP. It also makes Kinder Morgan, without question, the largest energy infrastructure company in North America in which more than 82% of its cash flows are fee-based.

In a slide presentation on the its website (http://www.kindermorgan.com/investor/presentations/KMI_Purch_MLPs_Investor_Presentation.pdf), the company said it provides immediate value uplift to current MLP unitholders and gives all four entities the quality consideration to share in future growth.

The company will streamline its complicated public structure of four separate entities into simply Kinder Morgan Inc, providing “one equity holder base, one dividend policy, one debt rating, no structural subordination, and no incentive distribution rights (IDRs).”

In an interview with Fuelfix (http://fuelfix.com/blog/2014/08/10/kinder-morgan-to-unite-a-house-divided-in-44-billion-deal/), Kinder said the IDRs had reached a point where the GP took a significant amount of cash flow from the MLPs. Once the deal closes, he said, “Everything will be tethered into one melting pot that’s going to produce dramatically increased dividend and a faster growth rate.”

Kinder said the benefits of operating as a corporation creates a broader pool of capital, lowers the cost of capital, creates a more competitive acquisition currency, and amounts to income tax savings of $20 billion during the next 14 years.

“All shareholders and unitholders of the Kinder Morgan family of companies will benefit as a result of this combination,” he said in a statement. “Everyone will hold a single, publicly traded security—KMI—which will have a projected dividend of $2.00 in 2015, a 16% increase over the anticipated 2014 dividend of $1.72. We expect to grow the dividend by approximately 10% each year from 2015 through 2020, with excess coverage anticipated to be greater than $2 billion over that same period. This combined entity will be the largest energy infrastructure company in North America and the third largest energy company overall with an estimated enterprise value of approximately $140 billion. Additionally, we will have a leading position in each of our business segments and operate in the rapidly growing North American energy infrastructure sector.”

The $71 billion price tag breaks down in the following: $40 billion in Kinder Morgan Inc. equity; $4 billion in cash; and $27 billion in assumed debt. Management will remain the same; however, the board of directors may increase with three members from the boards of the former MLP and three members from El Paso.

The proposed merger collectively represents the largest energy M&A transaction since the merger of Exxon and Mobil in 1999, said analysts at Jefferies, which acted as sole financial advisor to Kinder Morgan Energy Partners and Kinder Morgan Management. Combined, it will be the largest energy infrastructure company in North America, the third largest energy company overall with an estimated enterprise value of approximately $140 billion.

Analysts early Monday were optimistic about the transaction.

“In our view, the Kinder roll-up, which should improve Kinder's prospects going forward, is a net positive for MLPs on consolidation upside,” Baird analysts said. “We see this as an elegant solution to improve Kinder’s prospects and as a positive for MLPs on consolidation upside potential.”

Looking forward, Baird wrote, there may be others looking to follow in Kinder’s footsteps.

“Energy Transfer Equity has a host of subsidiaries, which ultimately should be melded into one super-entity resembling a pro forma KMI or Enterprise Products Partners,” they said.