Barron's is the latest Kinder Morgan bear; KMP -2%, KMI -1.2% premarket

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
Comments (24)
  • stuyoung
    , contributor
    Comments (269) | Send Message
    Is Kinder Morgan the next Linn Energy in terms of bashing the company and therefore its' stock?
    24 Feb 2014, 08:38 AM Reply Like
  • comcity
    , contributor
    Comments (107) | Send Message
    Yep, same morons doing it too. HedgeLIE and their internal college buddy hit man plant that works for Barrons.
    24 Feb 2014, 03:53 PM Reply Like
  • Ruffdog
    , contributor
    Comments (3700) | Send Message
    Does KMI also get $$s from EBP?
    24 Feb 2014, 08:43 AM Reply Like
  • JimmyBobby
    , contributor
    Comments (34) | Send Message
    No, but it does from EPB
    24 Feb 2014, 12:49 PM Reply Like
  • SaltyDog62
    , contributor
    Comments (838) | Send Message
    Barrons and Hedgeye, back again. Will look to pick up more KMI, wait and see...
    24 Feb 2014, 08:43 AM Reply Like
  • FleetUSA3226
    , contributor
    Comments (882) | Send Message
    Bought at 71 to add to my KMR long. Hard to resist this tax deferred dividend.
    24 Feb 2014, 09:54 AM Reply Like
  • crash9010
    , contributor
    Comments (183) | Send Message
    This seems like a rinse and repeat scenario. Line has given me a nice return thanks to the hit job by these folks(and the nice distribution). I see the same thing happening again with Kinder.
    24 Feb 2014, 08:54 AM Reply Like
  • korvet
    , contributor
    Comments (5) | Send Message
    Fear Mongering
    24 Feb 2014, 08:54 AM Reply Like
  • Blue22
    , contributor
    Comments (449) | Send Message
    Keep bashing Kinder Morgan and forcing con-jobs on investors so you can fill your short bags.


    Another gas-oil accident from a major. Another from a barge! These systems are old, some pipelines up to 60 years old! It takes hundreds of billions to update them and install safety devices, as well as scan for leaks, internal and external and on and on. With your childish legal actions costing Kinder millions and tying up projects, I have to wonder if you are in cahoots with our unstable President and his army of whatever they are!


    How about paying attention to the scams around you like: "Backdoor for Feds found in Apple software systems!" That sure does affect you! The Feds probably know all about your possible scams and will suck you dry when it benefits their conquest of everything.


    Kinder Morgan, Enbridge and TRP are critical to North American Energy and our immediate and long time future. Terrorizing investors for a few bucks is kickin yourself in your own nuts!
    24 Feb 2014, 09:12 AM Reply Like
  • AutoRegressive
    , contributor
    Comments (260) | Send Message
    They also hammered the drillers a few weeks ago which are now starting to come back. They really do move stocks though. I'm nervous about the upcoming pain in this name.
    24 Feb 2014, 10:09 AM Reply Like
  • tomlos
    , contributor
    Comments (1299) | Send Message
    picked up some more KMI today at under $32..... love it. Thanks HedgeEye and Barron's.
    24 Feb 2014, 10:18 AM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3554) | Send Message
    Agreed, loaded up today, appreciate the poor and outdated analysis Barron's
    24 Feb 2014, 01:02 PM Reply Like
  • Starman1
    , contributor
    Comments (19) | Send Message
    Thank you analysts for manufacturing the buying opportunity.
    - Its so good to do my own due diligence.
    I'll add more units as no doubt you are buying some too.
    Long KMP..
    24 Feb 2014, 11:01 AM Reply Like
  • Be Here Now
    , contributor
    Comments (6322) | Send Message
    It's 'Barron's Monday'.
    24 Feb 2014, 11:18 AM Reply Like
  • mydogmoe
    , contributor
    Comments (1430) | Send Message
    Barron's simply is not as entertaining as the New York Post. They are both tabloids however. I think the weekly nature of Barron's and the fact that Seeking Alfa and other internet business news outlets provide such faster news, that by the time they are on to something it is stale bread. In order to grab attention sensational stories are becoming more the norm than the exception. Remember the Tesla is a $50 stock cover story last summer? It was selling for $100 then and is over $200 today...
    24 Feb 2014, 11:40 AM Reply Like
    , contributor
    Comments (589) | Send Message
    After reading all the Posts, pro and con for the last 1/2 yr I decided to add in a larger stake to my IRA and cash account. Picked up KMI at 32.39 and KMR 71.00
    Reviewed my history and I like the ?(dividends)? Im getting. Sorry my Schwab account has it listed as dividends.


    Put an additional buy in for KMI for 31.50 hoping it does a double dip.


    By the way my managed Schwab account has KMI in it so not everyone thinks its a dog about to go south. They've had it in my account since I opened with them 3/4 of a yr ago.
    24 Feb 2014, 11:42 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1166) | Send Message
    That's analysts with a small ' a ' - The Barron's article as other baseless Media created Stories are as proportional in factually based contents as have been recognized following any assembly of so called Research based Articles ultimately disassembled in contents under Sensational Journalism. Opportunistic and intended to enhance Readership sales by Headlining, that's all. In 4 short paragraphs presented above, totally repudiated.


    Yes, it impacts share prices temporarily ' until, the screaming Buy Call ' is ultimately made at such point in reversal under which sellers have been suckered out of their long-term positions despite the realities underscoring the same reasons Kinder Executives have been buying-in. and that's not far away.


    Institutional Valuation $ 46. a share. Current price $ 32.
    24 Feb 2014, 01:10 PM Reply Like
  • BASEBALL1952
    , contributor
    Comments (102) | Send Message
    Sold Sept puts of KMI at $30 and KMR at $65-If it never gets this low I'll just keep the cash--If it goes this low i want to buy the stock..
    24 Feb 2014, 02:45 PM Reply Like
  • Penny Lane
    , contributor
    Comments (78) | Send Message
    Nice job Hedgeye! KMR's down by 4.9% today. How much did you make? But sooner or later you'd better go long...
    24 Feb 2014, 02:47 PM Reply Like
  • Archman Investor
    , contributor
    Comments (3379) | Send Message
    The biggest scam out there are the social media companies that rely on obsessed people to constantly participate in their time wasting.
    Want to short something? There is going to come a time when you can short FB & TWTR, et. al. like there is no tomorrow.
    24 Feb 2014, 02:56 PM Reply Like
  • Uain53
    , contributor
    Comments (1808) | Send Message
    'Smart money' lemmings making buying opportunities for me. Did very well on the LINN (LNCO) opportunites and am repeating for (KMI).


    Meanwhile all they can do is cycle money from one lemming's pocket the the other's. More of these dolts than individual investors, so they create wealth for me, re-invested dividends, buys on dips....


    heh, heh,
    I feel like a Snowy Owl on the Tundra in spring.
    24 Feb 2014, 11:44 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3554) | Send Message
    Ditto, that LNCO episode was a gold mine
    25 Feb 2014, 01:59 AM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3554) | Send Message
    Speaking of LNCO, just sold more puts this morning
    28 Feb 2014, 12:40 AM Reply Like
  • mydogmoe
    , contributor
    Comments (1430) | Send Message
    All four in the group closed higher today. Maybe Barron's has evolved into a contrary indicator. Tesla is up 150% since their bearish sell cover story last summer...
    25 Feb 2014, 10:13 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
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