- Barron's joined the parade of bears on Kinder Morgan Partners (KMP) and general partner Kinder Morgan Inc. (KMI) over the weekend, sending KMP -2%, KMI -1.2% and KMR -0.4% premarket.
- The article says KMP's calculation of distributable cash flow uses aggressive assumptions about how much it takes to sustain some of the company's businesses, particularly its oil production division, which generates almost 20% of annual cash flow; more conservative assumptions would lower DCF and probably the distribution and the price of the MLP units.
- KMI takes 43% of total distributions from KMP and 50% of distributions generated on new capital spending, which places the MLP at a disadvantage to some rivals and limits growth prospects, the article maintains.
- Deutsche Bank says the Barron's report contains "old inaccuracies," and that KMP's recent offering is a common feature of MLPs to fund growth capex and is not specific to the Kinder companies.
From other sites
at CNBC.com (Oct 15, 2014)
at CNBC.com (Oct 9, 2014)
at CNBC.com (Aug 19, 2014)
at CNBC.com (Aug 12, 2014)
at CNBC.com (Aug 11, 2014)
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