Kinder Morgan announces 2014 financial expectations


Chairman/CEO Richard Kinder foresees strong growth in 2014 across the Kinder Morgan companies, and says ~$14.4B in expansion and joint venture investments have been identified that will contribute to growth.

Kinder Morgan (KMI) expects to declare dividends of $1.72/share for 2014, a ~10% Y/Y increase over its 2013 budget target of $1.57 and ~8% over the $1.60 of dividends it expects to declare for 2013.

Kinder Morgan Partners (KMP) expects to declare cash distributions of $5.58/unit for 2014, a ~6% increase over its 2013 budget target of $5.28 and ~5% above its current expectation of $5.33; Kinder Morgan Management (KMR) also expects to declare distributions of $5.58/share for 2014.

El Paso Pipeline (EPB) expects to declare cash distributions of $2.60/unit for 2014, a ~2% increase over expected 2013 distribution of $2.55; EPB's 2014 budget includes the expected purchase (dropdown) from KMI of 50% of Ruby Pipeline, 50% of Gulf LNG and 47.5% of Young Gas Storage.

From other sites
Comments (23)
  • Sum02006
    , contributor
    Comments (459) | Send Message
     
    Not too shabby. I am especially impressed with KMI's growth.
    3 Dec 2013, 05:01 PM Reply Like
  • Sumflow
    , contributor
    Comments (3595) | Send Message
     
    El Paso's getting a few dropdowns this time around.
    3 Dec 2013, 05:07 PM Reply Like
  • rheimerl
    , contributor
    Comments (492) | Send Message
     
    kmi is where you want to be!
    3 Dec 2013, 05:08 PM Reply Like
  • Sumflow
    , contributor
    Comments (3595) | Send Message
     
    KMR $5.58 per share for 2014 will be paid in the form of additional KMR shares, is where I want to be. On average KMR has outperformed the S&P 500 by 671bp from now until the analyst day meeting in January.

     

    Credit Suisse estimates total return prospects to investors in of almost 25% in 2014.
    3 Dec 2013, 05:13 PM Reply Like
  • stvrob_63
    , contributor
    Comments (1133) | Send Message
     
    Still seems a steal at $35 anyway I look at this. I must not be understanding something? Is KMI generally considered to be more risky or less risky than the stock market in general? To me I interpret it to be somewhat less risky. Am I off in my thinking?
    3 Dec 2013, 05:16 PM Reply Like
  • hallereugene@gmail.com
    , contributor
    Comments (588) | Send Message
     
    I dont get it. KMI has slid from 37.08 when I bought to 35.04. A yield on the lower number would be a 4.48% yield.. Yes I know you cant time the market but why is KMI the place to be when it is loosing principle value with only a 4.48% dividend yield? KMR by contrast has bounced back from when I bought it at 75.716 to 76.70 and is giving a yield of 7.3% on the current price.

     

    Also Schwab lists KMI as a "D" from their analysts.

     

    What am I missing?
    4 Dec 2013, 08:09 AM Reply Like
  • Sumflow
    , contributor
    Comments (3595) | Send Message
     
    I guess it depends where you bought it.
    4 Dec 2013, 12:29 PM Reply Like
  • hallereugene@gmail.com
    , contributor
    Comments (588) | Send Message
     
    I know it depends on where your entry point is. Just because R Kinder buys KMI shares is that a compelling enough reason to buy as well? In my case to double down. Which is what I would do if I knew long term 2 yrs from now it would gain 15%. I know nobody can answer that but if the fundamentals are there after all the irrationality and hysteria subsides it should recover.

     

    My question is why KMI over KMR at any point?
    5 Dec 2013, 07:27 AM Reply Like
  • Value Doc
    , contributor
    Comments (854) | Send Message
     
    Credit Suisse estimates were at $5.68 for KMP/KMR and $1.80 for KMI. Any guess at market reaction? I'm guessing an initial mild sell-off and then a reversal to start the seasonal rally. Units have stayed depressed recently so any potential disappointment should be more than priced in. Not to mention that KM is probably low-balling its estimates and will end up beating them a bit, just like this past year. Estimates are consistent with previous guidance.

     

    EPB is interesting though--only 2% growth?
    3 Dec 2013, 06:04 PM Reply Like
  • Larry Smith
    , contributor
    Comments (3181) | Send Message
     
    At some point I think they roll EPB into KMP. Sure would uncomplicated things. Have to figure a way to do it that makes the EPB shareholders happy.
    3 Dec 2013, 06:49 PM Reply Like
  • 21thomas99
    , contributor
    Comments (411) | Send Message
     
    KM keeps saying they would only put EPB into KMP if it is 'economically feasible.'

     

    Then, of course, this merger would have to be approved by unitholders of each entity.
    3 Dec 2013, 07:45 PM Reply Like
  • Sumflow
    , contributor
    Comments (3595) | Send Message
     
    Kinder Morgan slides on combination: http://bit.ly/19CpfiE

     

    Keep debt seperate: http://bit.ly/18md2Lp
    3 Dec 2013, 10:25 PM Reply Like
  • Ruffdog
    , contributor
    Comments (3548) | Send Message
     
    If they roll EPB into KMP why not just collapse the whole company into KMI and reduce layers of management?
    8 Dec 2013, 12:01 PM Reply Like
  • Larry Smith
    , contributor
    Comments (3181) | Send Message
     
    KMI is a corporation and taxed like one, KMP EPB are MLP's which have certain tax advantages over corporations. I can't imagine the tax and administrative nightmare it would be to put the entire company under KMI, in addition many investors would bail because they too would lose a tax advantage.
    8 Dec 2013, 12:15 PM Reply Like
  • Sumflow
    , contributor
    Comments (3595) | Send Message
     
    Richard Kinder runs the show,

     

    KM: http://bit.ly/19CpfiE

     

    Debt: http://bit.ly/19CpfiC
    8 Dec 2013, 01:00 PM Reply Like
  • SeanSDS
    , contributor
    Comments (8) | Send Message
     
    Down 2% after hours now, someone did not like what they heard.
    3 Dec 2013, 08:54 PM Reply Like
  • mattskin
    , contributor
    Comments (68) | Send Message
     
    I am thinking the distribution growth guidance may have been lower than many were expecting.
    4 Dec 2013, 07:38 AM Reply Like
  • The Dividend Bro
    , contributor
    Comments (753) | Send Message
     
    i'll take 10% raise any day
    4 Dec 2013, 11:55 AM Reply Like
  • jcfortcollins
    , contributor
    Comment (1) | Send Message
     
    Mr. Kinder travels coach!!! he thinks of his investors! i like him!
    4 Dec 2013, 01:18 AM Reply Like
  • Larry Smith
    , contributor
    Comments (3181) | Send Message
     
    Have to be honest, I have owned KMI for some time now and returns have not been what I expected.
    4 Dec 2013, 10:30 AM Reply Like
  • mydogmoe
    , contributor
    Comments (1403) | Send Message
     
    If you had a bucket with common shares of MLPs consisting of TGRP, OKE and KMI, KMI would be the poorest performer with TGRP being the best by a mile. Not giving up on KMI but these shares are supposed to perform at a greater percentage than the yield....
    4 Dec 2013, 12:14 PM Reply Like
  • ariel666
    , contributor
    Comment (1) | Send Message
     
    Richard Kinder has his money in KMI. Bought some today.
    4 Dec 2013, 03:48 PM Reply Like
  • Sumflow
    , contributor
    Comments (3595) | Send Message
     
    Kinder buys KMR: http://bit.ly/IKg0Se
    5 Dec 2013, 08:53 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs