real-time news and commentary for investors
Friday, Sep 27
Kinder Morgan companies have barely moved since last Hedgeye report
- Kinder Morgan (KMI -0.4%) and Kinder Morgan Partners (KMP -0.5%) show mild losses in the second day after Hedgeye's second critical analysis of the companies; shares/units are down less than half a percent each since the latest note hit the street.
- The first report early this month pushed KMI lower by as much as 8%; the company, which generally doesn’t comment on analyst notes, ended up holding a conference call to reject the allegations.
- The way Kinder Morgan treats maintenance expenses “creates an enormous wealth transfer from KMP to KMI that should not be taking place,” to the tune of ~$200M/year, Kevin Kaiser wrote; even though this structure has existed for many years and is known to analysts, Kaiser says he still doesn’t think it's proper.