Consider the source, and at this time it's just one source, but, per Jim Bowden's Twitter:
Rangers & Kinsler are working towards a deal according to source that will include exercise of'13 option & add 5 yrs at approx 14m per yr— JIM BOWDEN (@JimBowdenESPNxm) April 5, 2012
So, that would be Ian Kinsler locked up through his age 36 season. Fangraphs pegs $14 million as just above his value two seasons ago, when he only played 103 games. Last year it thinks he was worth $35 million.
Given normal inflation rates, Kinsler would only need to be about half the player at 35 he's been over his career to make $14 million a solid deal, at worst. And given the explosion of the market with the Vottos and Fielders of the world, and the influx of new TV money, that might just end up being a steal with anything short of a massive decline.
J.P. Breen of Fangraphs discussed the Kinsler extension talks a few days ago, and looking at $15 million per year thought the extension made sense as long as the Rangers were not planning on moving Kinsler to another position to make room for Jurickson Profar. For the Rangers, though, it probably makes sense to lock up Kinsler now and decide where he's going -- left field, no where, or another team entirely -- when their hands are forced. Partly because of this:
In fact, only 23 second basemen since the live ball era began in 1920 have produced more WAR between their age 24 and age 29 seasons than Ian Kinsler, and amongst those names, only Chase Utley (+33.0 WAR) is an active player.
Beyond cold, hard numbers, Kinsler has become something of a franchise institution. He is one of the greatest Texas Rangers of all-time, almost certainly the best ever at his position in Arlington (there are only nine of those!). He even came up through the system, on his way to eventually skipping down the first base line after putting the Rangers' first playoff series victory effectively to bed. Kinsler being anything but a Texas Ranger is a sad enough thought to be worth at least a couple extra bucks.
Instead of continuing on the subject here, though, you should just read Adam Morris's take on the subject from a few days ago. He, too, thinks this deal makes sense, and I don't really disagree with anything there.