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Clayton Rulli  

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Latest  |  Highest rated
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Ian,


    I was hoping you could use industry standard valuvation comparisons (not PE ratio) in that next article you boasted about writing. Using 2014's data might be tricky, but there is a nice table in this article to help you http://seekingalpha.co...
    May 13, 2015. 07:26 AM | Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    It does not have a 200% payout ratio. here is a record of the coverage ratios and some education for you guys http://seekingalpha.co...
    May 12, 2015. 05:47 PM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Here ya go Six, I hope this helps you. Note the appropriate, industry-tandard metrics being used like DCF, coverage ratio, etc

    http://bit.ly/1cu8sSj
    May 12, 2015. 05:45 PM | Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Actually, the rates in Europe were very attractive versus US % rate at that moment, as stated in the announcement on SA: http://bit.ly/1cPtcoz

    Sounds like a smart issuance to me....
    May 12, 2015. 05:40 PM | Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Office Rat:

    Midstream MLP's have higher debt levels than many other industries because of the capital intensive nature of building pipelines, but also because of the highly visible and reliable "take or pay fee based contracts", which are negligibly exposed to commodity pricing. This allows a company like KMI to have higher debt loads than others and still be healthy.

    Don't let one person sway you to sell, as many are confused by how to value KMI. Many commenters here are talking PE ratios and other metrics when they are irrelevent in the case of KMI. The best metrics to watch are dividend coverage ratio, which was 1.2X for Q1 2015's payout, DCF, and dividend growth.
    KMI reiterated a $2.00/share payout for FY 2015, then 10% annual growth through 2020, with a projected $2 B in total excess coverage through this period. What was that about KMI having a 200% payout ratio? Some people just have no clue!
    If you'd like to know where I think KMI will be through this period of 10% annual dividend growth, based on the historical dividend yield the market has assigned to KMI's dividend $/share, here it is: http://bit.ly/1cPmmPT
    May 12, 2015. 05:13 PM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Ian. New debt and equity is used to fund expansion capex. This is the way most MLP's work, and KMI is not alone. Even EPD, which has one of the best distribution coverage ratios in the industry, also issues debt and/or shares to fund expansions and acquisitions. The problem with the pipeline business is it does take many years for projects to be in the black, but then again so does your mortgage.

    I suppose issuing shares and/or debt that prove to be accretive in time is not acceptable to you?
    May 12, 2015. 03:03 PM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Six. if you're not going to listen that PE for KMI is not accurate to use I cannot continue the debate.
    May 12, 2015. 02:20 PM | Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Ian,

    You said its a c corp , not an MLP GP right? Then in the next sentence you say " 2015 earnings forecast is below 2014 so the PE is going to running over 50 for awhile." How can you compare the two years when so much has changed post reorganization? Please tell me how you are accurately comparing the PE's of both years please share with us this mathematical miracle, and don't tell me scott trade or fidelity told you so. Also, PE TTM would include earnings from 2014, which again you simply shouldnt use. So please share your methods
    May 12, 2015. 12:37 PM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Again, P/E and EPS is not usable when evaluating MLPS. Since you guys keep harping on 2014's numbers, You must use DCF /unit. Since KMI was simply a vehicle that held units of KMP and EPB, this is how you must do it
    May 12, 2015. 12:04 PM | Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    If you are using stats provided by scottrade to evaluate KMI, there is your first mistake.

    Your second mistake, is using EPS to evaluate cash available for dividends. You must use DCF Distributable Cash Flow.
    Your third mistake is assuming I know nothing about KMI since I don't agree with your foolish methods of evaluating this company
    May 12, 2015. 12:03 PM | 2 Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Ian. If rates go higher that is arguably a long run headwind for many companies, not a unique issue to KMI solely.
    May 12, 2015. 11:49 AM | Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    PE does not little to accurately value MLP's. Watch dividend, dividend growth, and DCF coverage ratios
    May 12, 2015. 11:23 AM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    ddeckert

    I am sorry but you are mistaken. debt and share issuances fund expansions, while FCF pays the dividend, not vice versa
    May 12, 2015. 10:41 AM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    "it sure looks to me like they are borrowing money to pay the dividend"

    Actually they are borrowing and issuing shares to fund expansions, not to pay the dividend.
    May 12, 2015. 10:40 AM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    196% payout ratio? how did you manufacture that number? please show or provide link, thank you
    May 12, 2015. 10:04 AM | Likes Like |Link to Comment
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