Seeking Alpha

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.
Comments (10)
  • I think it's high time we put this side-show/freak-show on KMI to rest. Getting a bit long in the tooth, n'est-ce pas?
    27 Sep 2013, 02:59 PM Reply Like
  • SSM-

     

    Oui!

     

    -rwm
    27 Sep 2013, 11:09 PM Reply Like
  • Why is hedgeye getting so much coverage by SA? Their comment to "buy JCP" (ooops) also got some coverage the other day too. Some little "research" outfit seems to get a lot of focus.
    27 Sep 2013, 03:13 PM Reply Like
  • Perhaps Hedgehog is paying placement bonuses?
    27 Sep 2013, 04:18 PM Reply Like
  • I'm getting tired of all this. I'm long KMI and KMP and plan to stay that way.
    27 Sep 2013, 06:25 PM Reply Like
  • It is ridiculous that hedgehog has any credibility. To follow up the libelous assault on LINE with a like contention on the Kinder Morgan companies has given final exposure to the type of self-seeking, promotion-guided assailant involved. There is special bad intent involved here to self-build by hurting many other people. Remember this when he chooses his next victim. As a youthful person, the hedgehog has given himself a very bad start in professional life, more the pity.
    28 Sep 2013, 05:10 AM Reply Like
  • Why doesn't Kevin Kaiser get a real job at a real company that produces real things. Maybe he'd actually learn something and do something of benefit to others.
    28 Sep 2013, 08:54 AM Reply Like
  • The publicity this outfit is getting is as bad as what the Kardasians get in the tabloids.
    28 Sep 2013, 06:26 PM Reply Like
  • KMI and KMP will drift lower and lower . Until the accounting issues are resolved which they are not as of right now. KMP pushes IDR's to KMI and that is the issue .???..does that affect KMP maintenance of all those pipeline assets which Is a valid concern IMO. I have been long KMI since it went public and am glad to See Hedgeye shining a light on the issue ! If Kinder Morgan makes the case that the IDR's are not draining Maint capital away from KMP to push cash upstream to KMI then prove it ! Can't wait for the q3 conference call . This very issue is why EPD, BPL and MMP took out the GP. Maybe KMI should consider the same ?
    28 Sep 2013, 09:59 PM Reply Like
  • I am a retired Engineer an trade options with Motley Fool. I certainly disagree and would buy KMI
    29 Sep 2013, 11:46 AM Reply Like
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