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Kinder Morgan Energy Partners LP (NYSE:KMP) has tumbled 20% from its February high as everything associated with the oil patch sold off. Adding to the pain, a 3.8 million share equity offering chopped up the share price today.

This thrashing represents an attractive entry point into this beaten-down stock for six reasons:

1. Previous stock offerings were followed by higher share prices. The 6.5 million share offering of May 2010 frightened many investors into a sensational 10% one-day drop. Shares moved 12% higher in a week and 20% higher in four months. A 6.7 million share offering in June 2011 cut share prices modestly; KMP rose 5% a week later.

2. KMP is now oversold, with an RSI (14-day) of 28.

3. Management expects $4.98 in 2012 distributions.

4. Kinder Morgan, Inc. (NYSE:KMI) intends to offer KMP all of Tennessee Gas Pipeline and a portion of El Paso Natural Gas acquired from its El Paso takeover, accretive to KMP's distribution per unit after 2012.

5. The general partner has been known to relinquish a share of its distributions on a KMP shortfall. I don't know of any other partnership where management is that committed.

6. It has an extremely attractive tax-deferred 6.4% distribution.

Disclosure: I am long KMP.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

Source: Kinder Morgan Energy Partners: An Attractive Buying Opportunity