Rich Kinder buys 200K KMI shares as "smart money" moves away from KMP

Rcihard Kinder discloses buying nearly 200K shares of Kinder Morgan (KMI -2.4%) worth ~$6.4M, just four days after disclosure of a 100K share purchase worth ~$3.3M.

The purchases may add to the perception, discussed in this weekend's negative Barron's piece, of an enormous transfer of wealth from MLP Kinder Morgan Partners (KMP -5.3%) to general partner KMI and that “the smart money has gravitated toward the GP.”

Rich Kinder owns an $8.1B stake in KMI vs. just $26M in KMP.

Also: KMR -4.6%, EPB -0.6%.

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Comments (24)
  • tlc8386
    , contributor
    Comments (109) | Send Message
    Richard Kinder took KMI private once before no wonder he has that much $$ in it compared to the others. And the reason why investors would gravitate toward KMI is it's price is lower than kmr but the divvy is also less. But you can buy more stock for the money vs. KMR. Nat gas has had the largest gain this winter on top of the demand being the highest due to the storms there is no way we did not make money this winter. This selloff is a bear raid--
    24 Feb 2014, 03:37 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2863) | Send Message
    "And the reason why investors would gravitate toward KMI is it's price is lower than kmr but the divvy is also less. But you can buy more stock for the money vs. KMR."


    Saying that you'd rather buy KMI because its price per share is lower than KMP is irrational, since they dont represent the same economic interests.
    24 Feb 2014, 04:57 PM Reply Like
  • db4956db
    , contributor
    Comments (15) | Send Message
    KMI cannot succeed without KMP succeeding. This purchase cannot be interpreted as negative sentiment to KMP. KMI is simply a more leveraged way to bet on a KMP success.


    Of course for someone of Kinder's wealth, the $10m purchase is more of a gesture than a meaningful additional commitment.
    24 Feb 2014, 04:33 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3415) | Send Message
    ok so rich kinder added .11% to his positon.. not even a dividend DRIP!
    24 Feb 2014, 05:15 PM Reply Like
  • CLUB 198
    , contributor
    Comments (105) | Send Message
 me this is simply Rich Kinder moving money from one pocket of his jeans to the end, due to the interdepence of the stocks on one another, it will be a "rising waters lifts all boats" scenario. Despite the "Barons/shorts" I fail to see how you can stop the long term growth of this group.


    VERY long KMP
    24 Feb 2014, 05:48 PM Reply Like
  • addictedToSA
    , contributor
    Comments (18) | Send Message
    Richard Kinder can buy a boat and/or Porsche every day for the rest of his life. He chose to spend some money on his stock. It doesn't matter if it's pennies to *him.* He took money which could have been spent elsewhere, and bought KMI etc.


    That says something.
    24 Feb 2014, 08:52 PM Reply Like
  • coastside1000
    , contributor
    Comments (119) | Send Message
    It's not just Kinder buying. If you look at the insider trading record, since October 25, 2013, there have been 14 transactions, all open market purchases, by 5 different officers, including Kinder. The smallest of these was a purchase by a VP for $32k. Another director made purchases totaling $7 million. Kinder made purchases totaling more than $45 million in this period. The overall recent pattern shows meaningful insider buying, not a mere "gesture" by Kinder.
    24 Feb 2014, 06:32 PM Reply Like
  • Alpha Wolf
    , contributor
    Comments (231) | Send Message
    The "smart money" knows how to spell "Richard", and generally how to proofread.


    But I agree with others who say $ millions are more than a gesture, even for him.
    24 Feb 2014, 06:38 PM Reply Like
  • ephud
    , contributor
    Comments (4423) | Send Message
    If I was RK I'd be writing Puts hand over fist.
    24 Feb 2014, 07:30 PM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1154) | Send Message
    QUOTE ' an Enormous transfer of Wealth from the MLP KMP to the General Partner KMI .... The Smart Money has gravitated towards the GP.


    Oh, could that be Richard Kinder's Purchases and Holdings of 8.1 Billion Dollars stake in KMI versus just the 26 Million in KMP. Directors in line with the President.
    14 Transactions since October 2013 is clearly more than a ' gesture', rather a significant [ follow the money ] tell tale, which division reigns supreme [agreed]
    despite the interdependence ? any ultimate outcome of consolidation. He's picking up KMI at bargain under the percentage loss in KMP 5.3 % v/s 2.4, is Arbitrage.


    @ tlc 8386 is not irrational ' because, they do not represent the same economic interests ' ... KMI represents MORE.
    24 Feb 2014, 08:00 PM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1154) | Send Message
    P.S. The Barron's Article [is] old news, hardy reflects what is occurring - they couldn't know what Kinder is actually doing, intends to do, nor what ultimately drives the circumstances underscoring corporate decisions which have yet to materialize, nor any response by Shareholders, many Institutional.
    Look, this is tremendous enterprise regardless your personal thoughts, conclusions or reasoning. We're not divesting our position for anything !
    24 Feb 2014, 08:14 PM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1154) | Send Message
    Today's Volume rather capped the sell off we'd speculate.
    24 Feb 2014, 08:16 PM Reply Like
  • romilar
    , contributor
    Comments (778) | Send Message
    Don't care why Mr. Kinder is buying, just that he's not selling. at these prices I am adding also. I agree with the "bear attack" notion rather than something being fundamentally wrong with the company and it will ultimately be to the benefit of the long holder who makes use of this sale price. I've looked at the company components and the group and I just can't imagine anything short of an asteroid impact causing sudden failure.


    Long KMI.....Rom
    24 Feb 2014, 10:46 PM Reply Like
  • elprez2
    , contributor
    Comments (24) | Send Message
    Once again the Baron's negative gushing comes to the surface..some day maybe there will be an investigation of possible stock manipulation by these people..does anyone think that maybe just maybe the Barron's group has now began taking huge positions in KMP now that they have successfully brought down the price on another commodity for their personal gains..Hmm Just wondering
    25 Feb 2014, 08:35 AM Reply Like
  • Ruffdog
    , contributor
    Comments (3565) | Send Message
    Or maybe the author's brother-in-law is short Kinder stocks.
    25 Feb 2014, 10:19 AM Reply Like
  • jerrywengler
    , contributor
    Comments (657) | Send Message
    The company that has lost out of all of this, the Kinder attack and the Linn attack, that will sink in value appears to me to be Barron's. Lost credibility is hard to regain.
    25 Feb 2014, 10:22 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1154) | Send Message
    Yes, Loss of Credibility, ultimately Egg in the Face.
    26 Feb 2014, 02:57 PM Reply Like
  • Ruffdog
    , contributor
    Comments (3565) | Send Message
    Another reason to own MLPs rather than tanker train companies is that the weather has a bigger impact on oil by tanker than MLP. Cold weather and tornadoes. I wouder if a tornado hit a tanker train who would be responsible for the environmental mess? Obama?
    25 Feb 2014, 10:23 AM Reply Like
  • leviticus1935
    , contributor
    Comments (84) | Send Message
    Rich Kinder ruled out (for the time being) a merger of KMI and KMP in his response to Barrons. I wonder what would happen if KMI/KMP revised the partnership agreement to reduce the top IDR rate down to 35 percent from 50 percent. KMP's distribution would immediately jump and KMP would grow faster. KMI's dividend would decline, but grow faster. KMI shares might not drop as much as you think because it will become a faster growing GP. Might be a win/win for all parties - except for those who are expecting a certain level of dividends from KMI. They could switch to KMP or KMR.
    25 Feb 2014, 11:41 AM Reply Like
  • raykrv6a
    , contributor
    Comments (3628) | Send Message
    Added more KMI today after reading the KM response to Hedgeye. I believe KM knows their business and operations where Hedgeye cannot.


    Hedgeye is like a gnat that buzzes around and is a very minor distraction. I believe KM will continue to grow and reward the investors.


    Long EPB, KMI, and KMR.
    26 Feb 2014, 04:19 PM Reply Like
  • Anasazi101
    , contributor
    Comments (3402) | Send Message
    Quick question, that maybe some here could answer...?
    Trying to wrap my head around this..?


    Have(do) owned KMP long term...several years.
    Have(did) own KMI for a couple years, sold maybe 2 years ago?


    What advantage is there to owning KMR as opposed to KMP ?
    I see the share "price difference", both being depressed because of recent media attention...
    The dividend rates(%) are similar in payouts; On both.


    But can't find ex-div, pay date or amounts on KMR??
    And is the only advantage, linked to "tax advantages" on KMR..?
    Those are my two(2) quests...
    Thanks in advance.....Ana
    27 Feb 2014, 12:25 PM Reply Like
  • HackFab
    , contributor
    Comments (1279) | Send Message
    Sold 200 shares of DUK (at a nice profit) to add 441 shares to my position in KMI. At $.41 per quarter KMI dividend (versus $.78 DUK), I'm at a net gain of $24.81 in dividend income per quarter.
    28 Feb 2014, 02:03 PM Reply Like
  • raykrv6a
    , contributor
    Comments (3628) | Send Message
    At this price, you will probably have a nice capital gain too.
    28 Feb 2014, 03:03 PM Reply Like
  • HackFab
    , contributor
    Comments (1279) | Send Message
    All in my IRA, so I'll worry about the cap gain when it comes to RMD time.
    28 Feb 2014, 08:07 PM Reply Like
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