Seeking Alpha

Kinder Morgan CEO discloses buying 100K shares worth $3.3M

  • Kinder Morgan (KMI) ended with a small decline, giving back morning gains that followed CEO Richard Kinder disclosing his purchase of 100K shares of KMI's stock yesterday at an average price of $32.97 each.
  • The $3.3M purchase increased Kinder's direct stake in the company to nearly 232M million shares, or ~22.3% of its common stock; he also controls another 11.1M shares held in a limited partnership and by his spouse.
  • KMI closed -0.6% after gaining as much as 1% earlier.
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Comments (20)
  • Diggerdugit
    , contributor
    Comments (78) | Send Message
    Im with Richard. I like a guy who is willing to put his money where his mouth is. Long KMI--- and getting longer
    21 Feb 2014, 04:36 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
    You can take the timing as when to buy any of the Kinder companies from this purchase.


    Form 4:
    21 Feb 2014, 05:09 PM Reply Like
  • cothbigbucks
    , contributor
    Comments (5) | Send Message
    His purchase of 100,000 sh. represents less than 1/20 of 1.0% of his holdings in KMI. Doesn't even "move the needle" but whatever floats your boat.
    21 Feb 2014, 05:12 PM Reply Like
  • bil1026
    , contributor
    Comments (340) | Send Message
    +20bp for his purchase; -1500bp for Wednesday's FFO dilution.
    21 Feb 2014, 05:38 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
    How does paying cash above book value dilute intrinsic value?
    21 Feb 2014, 05:59 PM Reply Like
  • movies555
    , contributor
    Comments (1085) | Send Message
    Maybe Kinder will just take KMI private again. (Probably not, but....) I just think you have a remarkable collection of hard assets that would be impossible to replicate, are essential and it's like railroads - who could build the energy railroad that Kinder has built? Because of many issues - including increasing regulation - no one. Maybe some sort of merger/simplification of the partnerships, perhaps? Noticed that Kyle Bass has a largeish new stake in KMI and warrants.


    It just kinda feels like KMI is underappreciated and ripe for some manner of action from Kinder (probably not going private again, but something.)
    21 Feb 2014, 05:13 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
    >Kyle Bass<
    Top 10 Institutional Holdings
    21 Feb 2014, 05:24 PM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
    These equity offerings are accretive to shareholders, new assets are added on from the outside. Owners equity is not diluted in any way.
    The new capital stock brings in over twice the book value of each unit's assets in cash. Cash flow will grow as a result of the expansion.
    No dilution occurs when the economic value of an investment is increased by the issuance of additional shares for cash above intrinsic value. There is no dilution in the outstanding units, just an increase in the outstanding float.
    Investors need only be concerned with net income, on-going investments and future earnings potential.
    Fools talk:
    21 Feb 2014, 06:00 PM Reply Like
  • Uncle Pie
    , contributor
    Comments (3540) | Send Message
    he's probably just reinvesting his KMP distributions plus his KMI dividends. Both paid recently.


    Long KMI & KMP
    21 Feb 2014, 07:24 PM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (912) | Send Message
    Mr. Kinder just made his point of interest obvious.
    21 Feb 2014, 08:27 PM Reply Like
  • mrgman
    , contributor
    Comments (22) | Send Message
    all good comments. like sumflows comments esp.
    21 Feb 2014, 08:53 PM Reply Like
  • River18
    , contributor
    Comments (2086) | Send Message
    I added more KMI shares on the same date as Mr. Kinder, but was not good enough to buy at $32.97. Instead I bought at $33.20 and $33.04.
    Just can't pass up on a good sale price.
    22 Feb 2014, 02:31 AM Reply Like
  • 21thomas99
    , contributor
    Comments (412) | Send Message
    'Sparling and Kenneth Lay will assure you that all is well.'


    Get your facts straight before using innuendos. Richard Kinder left Enron before the fraud(s) began. If he had anything to do with the fraud at Enron, how come Kenneth Lay, et. al., never threw him under the proverbial bus during their proceedings?
    22 Feb 2014, 09:39 AM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
    Vintage Enron:
    22 Feb 2014, 09:46 AM Reply Like
  • Patience29
    , contributor
    Comments (199) | Send Message
    Peter Lynch gives KMI a 91% guru scorecard rating and has tagged it a "fast grower".


    KMI's revenue growth is up 41% (TTM vs prior TTM).


    The stock is down 10% near its 52-week low in December. Consensus is $38.5 with an upside of $46 for 2014.


    KMI's yield is 5%


    What am I missing here.... other than an additional buying opportunity?


    Long KMI

    22 Feb 2014, 10:36 AM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | Send Message
    >What am I missing here....<
    Richard Kinder:
    22 Feb 2014, 07:30 PM Reply Like
  • Zeus2012
    , contributor
    Comments (707) | Send Message
    I'd wait on $KMI. While I disagree with Hedgeye, the 100k purchase by Richard Kinder is a nice gesture but meaningless economically. $KMI looks interesting below $30. It may just get there next week with the hit piece from Barron's this weekend.


    It's interesting to note that the piece by Barron's quoted Kaiser from Hedgeye extensively. This makes me wonder how much of its own due diligence was done. Afterall, I've yet to hear a peep from Hedgeye on $LINE in the last 2 months. This after encouraging people to short it @ $27.


    Always do your own homework.
    22 Feb 2014, 11:09 AM Reply Like
  • Rudester
    , contributor
    Comments (2717) | Send Message
    My KMI holdings are maxed out. Too risky to add more of it to my portfolio. But why is the Kinder Morgan trifecta (KMI, KMP & KMR) continuing to get punished by the market?
    22 Feb 2014, 09:57 PM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (912) | Send Message
    Pipeline MLP's took in over $186,000.000 from Investment Funds & ETF's this week v/s 136 mil last month - expectations for growth in Pipelines now vastly exceed that of Rails
    Canadian Rail Projects are falling behind Pipelines as the future primary source of delivery to major connection points within North America.
    Kinder Morgan's superior network & planned projects under the leading transport conglomerate offer Investors a secure opportunity to participate in the North American energy revolution where supply meets demand as an exception to far less secure enterprises.
    The suggestion by those supporting to sell Short shares to $ 27. under an opportunistic market sell down in share prices by less than 10 percent, given but a creational debate concerning the yet to be released Corporate decisions regarding determination of a minute increase in non delusional sale of equity amounting to less than 2 percent of outstanding shares for purposes deemed appropriate under advantage of reducing costlier debt while increasing operating funds - contradicts the flexibility which Management will determine most beneficial. [ while we have condensed the general points of argument for sake of text ] sell volume is stagnating as return on principal investment becomes increasingly more attractive at today's trading range.
    Investors need only be concerned with potential growth, earnings & ongoing investments by the Company - not to be blown out of a Portfolio Position which if anything has now become increasingly more attractive [ and ] one in which Directors are demonstratively increasing their own positions under continuous direct purchases. Nothing more sickening than to sell near bottom under contradiction of net asset valuation, a Company which just received as assigned increase in Credit Rating & Institutional valuation to $ 46. per share, more than suggests we're nearer resolution than next weeks change in Media Reports could enviably make a sucker out of those even considering to sell.
    24 Feb 2014, 03:58 AM Reply Like
  • jjmc2001
    , contributor
    Comments (1313) | Send Message
    I am long KMI for many of the same reasons as most of the posters. Just curious if anyone has an opinion on MPLX. I am long having bought in mid 2013. Up over 37% since then. The yield is modest now but they are projecting some big growth numbers. I will admit I got lucky and bought mainly because of their footprint. I am also long MRO and used to be long MPC until I soured on the refiners.
    28 Feb 2014, 02:08 PM Reply Like
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