Seeking Alpha

Rich Kinder feels undervalued, but says doubters will be proved wrong

  • The Kinder companies continue to report solid results - Kinder Morgan Partners' (KMP) profit more than doubled in 2013, and controlling partner Kinder Morgan Inc. (KMI) enjoyed a six-fold increase in net income - but their stock prices have underperformed, Richard Kinder lamented earlier while discussing earnings.
  • Naysayers point to KMP/KMI's size, claiming it’s too big to meaningfully grow any more, either by acquisition or through new projects of its own; Rich Kinder says he's been hearing that for years, but the company keeps expanding.
  • Nevertheless, recently issued 2014 guidance that projected profits to grow more modestly disappointed some analysts.
  • "We proved the doubters wrong [before]," said a somewhat defiant Kinder. “You sell. I’ll buy. And we see who comes out best in the long run.”
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Comments (29)
  • grox01
    , contributor
    Comments (866) | Send Message
     
    I feel great knowing who is managing my money in KMI.
    16 Jan 2014, 07:29 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (7264) | Send Message
     
    What a great CEO/what great companies/what great investments.
    16 Jan 2014, 07:29 PM Reply Like
  • Magnut
    , contributor
    Comments (110) | Send Message
     
    I'm in ...... KMI all the way
    16 Jan 2014, 07:36 PM Reply Like
  • tomlos
    , contributor
    Comments (1236) | Send Message
     
    Going to continue to load up on KMI. Thank you Rich!
    16 Jan 2014, 07:41 PM Reply Like
  • Wilson Wang
    , contributor
    Comments (908) | Send Message
     
    My god those are some confident words! He is definitely going to prove the naysayers wrong.
    16 Jan 2014, 07:45 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (816) | Send Message
     
    I don't own any of the Kinder Morgan securities. But I have immense admiration for the business, Kinder, and how they run the operation.

     

    He couldn't be more right.
    16 Jan 2014, 08:00 PM Reply Like
  • runtravrun1
    , contributor
    Comments (229) | Send Message
     
    Dido.
    16 Jan 2014, 08:27 PM Reply Like
  • FleetUSA3226
    , contributor
    Comments (856) | Send Message
     
    Maybe you need to buy some.
    16 Jan 2014, 08:43 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1756) | Send Message
     
    This guy is a boss.
    16 Jan 2014, 08:13 PM Reply Like
  • DGI_Dan
    , contributor
    Comments (84) | Send Message
     
    $KMI is definitely way to go.
    Long $KMI.
    16 Jan 2014, 08:25 PM Reply Like
  • Rudester
    , contributor
    Comments (2916) | Send Message
     
    Over the past few months I've built up my KMI holdings to where I am overweighting it by 2X normal. Such is my conviction on Rich Kinder.
    16 Jan 2014, 08:29 PM Reply Like
  • TGC004
    , contributor
    Comments (451) | Send Message
     
    Kinder is the man. He has always delivered
    16 Jan 2014, 08:30 PM Reply Like
  • omarbradley
    , contributor
    Comments (964) | Send Message
     
    they're in the shipping business now. be nice if the "structure" was less opaque. Why not "one Kinder/Morgan" as a publicly traded company? in any case they're well on their way to fueling space launches too so I wouldn't be very bearish. the Governor of Texas could become very powerful in a very short period of time if that happens. Still..this is my favorite of them all: http://bit.ly/K8i8Eg West Africa, Eastern Med, on shore USA. this one has it all.
    16 Jan 2014, 08:54 PM Reply Like
  • Ocean Man
    , contributor
    Comments (611) | Send Message
     
    Long KMP. No plans to sell. Terrific yield, one of my favorites.
    16 Jan 2014, 09:04 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Echo the comments here. After following Sumflow's Youtube links and listening to him talk the guy is a boss. He sets targets and consistently delivers them. Ridiculously strong management.

     

    Long KMI
    16 Jan 2014, 09:28 PM Reply Like
  • mydogmoe
    , contributor
    Comments (829) | Send Message
     
    I honestly think Richard has more skin in the game than any of us. Way ahead at this point and have consistently bought on weakness. It has underperformed other common equity MLPs. Check out TGRP. There are others....
    16 Jan 2014, 09:31 PM Reply Like
  • Ruffdog
    , contributor
    Comments (2247) | Send Message
     
    I like his comment to a skeptic; "you sell and I will buy."
    17 Jan 2014, 08:42 AM Reply Like
  • toomuchgas
    , contributor
    Comments (834) | Send Message
     
    Solid building block of my retirement portfolio along with PAA , EPD, ETP.
    16 Jan 2014, 09:42 PM Reply Like
  • lsuavecito
    , contributor
    Comments (1016) | Send Message
     
    Do not ignore those KMI Warrants.
    They have 3+ years to run, and Captain Kinder grabs them like they are freshly roasted peanuts.
    16 Jan 2014, 10:16 PM Reply Like
  • Niksurfs
    , contributor
    Comments (95) | Send Message
     
    Great company and top of the line management, led by example.
    Long and strong KMI
    16 Jan 2014, 11:56 PM Reply Like
  • bazooooka
    , contributor
    Comments (3634) | Send Message
     
    The warrants are a Strong play: this breakdowns all the options.

     

    http://seekingalpha.co...
    17 Jan 2014, 02:31 AM Reply Like
  • Grahamfan2
    , contributor
    Comment (1) | Send Message
     
    Rich Kinder is a bit disingenuous in his comments. Guess who the big seller of KMP was last year? From the KMP earnings release:

     

    "KMP and KMR sold common units and shares valued at approximately $294 million under their at-the-market programs during the fourth quarter, bringing the total to more than $1.1 billion for the year. "

     

    Also, you should take note of the fact that RK bought KMI not KMP. While on the surface the driver of the value of the two companies may seem the same, KMI is a beneficiary of KMP's expansion and share issuance even if KMP shareholders are not.
    17 Jan 2014, 09:45 AM Reply Like
  • Rudester
    , contributor
    Comments (2916) | Send Message
     
    "Also, you should take note of the fact that RK bought KMI not KMP. While on the surface the driver of the value of the two companies may seem the same, KMI is a beneficiary of KMP's expansion and share issuance even if KMP shareholders are not."

     

    If KMP doesn't make money then KMI doesn't either.
    18 Jan 2014, 10:19 AM Reply Like
  • dunn.aaron
    , contributor
    Comments (52) | Send Message
     
    Which should, I look at for a Roth? Regular IRA? KMI, KMR, KMP? Thanks!
    19 Jan 2014, 06:11 PM Reply Like
  • 21thomas99
    , contributor
    Comments (412) | Send Message
     
    KMP should not be in either IRA due to tax-related issues (i.e. Unrelated Business Tax Income [UBTI]).

     

    KMI in a Roth IRA would seemingly be your best bet as KMI's dividends will then be tax-free.
    19 Jan 2014, 07:34 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    I put KMI in my retirement account also.
    19 Jan 2014, 11:07 PM Reply Like
  • Rudester
    , contributor
    Comments (2916) | Send Message
     
    Either KMI or KMR can be safely put in an IRA, without any tax worries. Actually, you can put shares of an MLP –like KMP– into an IRA. The tax complications comes up only if the MLP holdings generate more than $1000 of Unrelated Business Income. Unless you are super rich, your stake in MLPs are not likely to generate that much Unrelated Business Income.
    20 Jan 2014, 12:03 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
     
    lsuavecito :>Do not ignore those KMI Warrants.<
    .
    Warrant repurchase update:> http://bit.ly/1dPEEsa
    29 Jan 2014, 11:01 PM Reply Like
  • lsuavecito
    , contributor
    Comments (1016) | Send Message
     
    Sumflow, thanks for the update.
    At a recent price close to $3 the warrants were a buy(they are off the high more than 50%). The question is which is the better value, the warrants or the KMI leaps of the similar duration?
    30 Jan 2014, 01:28 PM Reply Like
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