Kinder Morgan says it will meet or exceed 2014 financial expectations

Kinder Morgan reconfirms its 2014 financial dividend and distribution guidance for Kinder Morgan (KMI), Kinder Morgan Partners (KMP), Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB).

As previously announced, KMI expects to declare dividends of $1.72/share for 2014, up 8% Y/Y, driven by continued strong performance at KMP and contributions from EPB.

KMP expects to declare cash distributions of $5.58/unit for 2014, up 5% Y/Y, mostly due to the positive impact of its tanker acquisition, Tennessee Gas Pipeline's incremental north to south firm transportation contracts, and additional long-term contracts on its El Paso Natural Gas pipeline system.

KMR also expects to declare distributions of $5.58/share for 2014, to be paid in the form of additional KMR shares.

CEO Richard Kinder also says the company has identified $14.8B in expansion and joint venture investments that should add to earnings.

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Comments (28)
  • Swisser998
    , contributor
    Comments (166) | Send Message
    Rich Kinder for the win.
    14 Mar 2014, 08:53 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1171) | Send Message
    It's about time we heard from the Company instead of everyone else. Now, very under valued. Cheers !
    14 Mar 2014, 11:30 AM Reply Like
  • coyote flaco
    , contributor
    Comments (109) | Send Message
    Kinder is "chumming" the water for suckers. Remember the GS conflict of interest game? Just more from the Kenny Boy Lay and Enron playbook.
    14 Mar 2014, 03:40 PM Reply Like
  • 21thomas99
    , contributor
    Comments (411) | Send Message
    'Just more from the Kenny Boy Lay and Enron playbook.'


    You couldn't be more wrong. But don't take my word for it -- please explain why Kinder was not mentioned during the trial of Lay, Skilling, or Fastow.
    14 Mar 2014, 04:13 PM Reply Like
  • coyote flaco
    , contributor
    Comments (109) | Send Message
    I will stipulate to your statement, but it a red herring. Kinder left Enron before the fun and games. But the lives of Kenny Boy and Kinder follow parallel lines from youth in Missouri, fundamentalist religion, college, lust for wealth at whatever cost, and market gamesmanship. Read the biographies, and get back to me.
    14 Mar 2014, 09:26 PM Reply Like
  • 21thomas99
    , contributor
    Comments (411) | Send Message
    I have read numerous accounts of why Kinder left Enron. They all say the same thing -- Lay was being duplicitous with respect to Kinder. I even saved one of the articles


    Here is Richard Kinder's termination contract from Enron


    These two articles form the backdrop as to my initial comment.


    How is it found my initial comment a distraction? Is it because you view Kinder, et. al. as achieving their ambition with a blatant disregard for collateral damage?


    I read your initial comment as Kinder having played a role in the fraud at Enron, which was the motivation for my initial comment.
    15 Mar 2014, 08:43 AM Reply Like
  • Mike Nadel
    , contributor
    Comments (20493) | Send Message


    Agree wholeheartedly. I've been buying on these dips and now am "full up" on KMI and KMR. It's time to see it move back up ... and time for those divvies to get hiked as promised!


    15 Mar 2014, 11:33 PM Reply Like
  • Lovethosedividends
    , contributor
    Comments (82) | Send Message
    "The Smartest Guys in the Room," by Bethany McLean and Peter Elkind, reports that Lay forced Kinder out of Enron, which turned out to be a huge stroke of luck for Kinder. The book's reports on Mr. Kinder as a businessman are not only favorable but impressive. Long KMI and considering becoming long-er.
    16 Mar 2014, 11:04 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1171) | Send Message
    Dido Mike
    There's a valuation there, with dividends, just too comparatively low & if your eliminating Emotional Investing based upon Stories, these shares were a Gift. All Kinder did by pouring Millions into the shares was to boost convictions. his money or ours, no one puts that kind of personal fortune into shares of his own company, knowing they're going bankrupt ! I just wanted some Corporate Guidence aside - I think we're about to begin receiving an out pouring of differing analysis.
    Same old Wall Street story - avoid getting blown out of your position just as it turns. It's a core holding
    16 Mar 2014, 11:46 AM Reply Like
  • deercreekvols
    , contributor
    Comments (9849) | Send Message
    How did Jim Cramer know this?


    What a game he is playing...
    14 Mar 2014, 08:58 AM Reply Like
  • tomlos
    , contributor
    Comments (1301) | Send Message
    Long KMI! This is a GREAT entry point for long term holders... Don't get these kinds of opportunities too often.
    14 Mar 2014, 09:12 AM Reply Like
  • jeepnsam
    , contributor
    Comments (54) | Send Message
    $KMI for IRA 2014 and all the kids trusts today GO RK!
    14 Mar 2014, 09:27 AM Reply Like
  • smurf
    , contributor
    Comments (6442) | Send Message
    Nice to hear since I recently bought KMI on the dip.
    14 Mar 2014, 09:44 AM Reply Like
  • Sum02006
    , contributor
    Comments (461) | Send Message
    Take that, Barrons!
    14 Mar 2014, 11:10 AM Reply Like
  • Total Return Investor
    , contributor
    Comments (1388) | Send Message
    14 Mar 2014, 11:39 AM Reply Like
  • rubident
    , contributor
    Comments (12) | Send Message
    Why should I buy KMI, which has a lower dividend, as opposed to KMP or KMR? Also, why does Rich Kinder always buy KMI as opposed to KMP or KMR?
    14 Mar 2014, 01:04 PM Reply Like
  • movies555
    , contributor
    Comments (1462) | Send Message
    rubident, KMI is effectively a leveraged play on KMP. If KMP does well, KMI does really well.
    14 Mar 2014, 01:43 PM Reply Like
  • Market Flaneur
    , contributor
    Comments (68) | Send Message
    In short: KMI will have greater dividend growth than KMP or KMR. Lower yield now, greater growth: KMI. Higher yield now, lower growth: KMP/KMR.


    Not sure why Kinder buys KMI over KMP/KMR.


    Maybe someday the KMP (the limited partner) will buy out or merge with KMI (the general partner) and Kinder wants to be on the seller's side.


    KMI is a C-corp with dividends on a Form 1099-B.
    KMP is a MLP with income distributions on a Schedule K-1.
    KMR is KMP with unit distributions instead of income, thereby avoiding a Schedule K-1. (Selling some or all of the position will trigger reporting on a 1099-B.)


    That's my understanding, anyway.
    14 Mar 2014, 01:50 PM Reply Like
  • ads7w6
    , contributor
    Comments (44) | Send Message
    That is almost all correct, except that the dividends from KMI are reported on Form 1099-DIV
    14 Mar 2014, 03:23 PM Reply Like
  • Cheese Head
    , contributor
    Comments (298) | Send Message
    Additionally, as KMR pays their "dividend" in stock not cash, there is no dividend withholding tax by US for foreigners like with normal US dividend paying companies which is good for me being a Canadian in Qatar where also no tax, so I get full almost 8% return.
    15 Mar 2014, 05:29 AM Reply Like
  • Union Trade Assoc
    , contributor
    Comments (1171) | Send Message
    Yes, that's true - KMI will have the Higher percentage of Dividend Growth. if as Kinder has stated, 14.8 Billion Dollars in expansionary & Joint Venture Projects - that is the growth which will drive earnings higher- a question on the minds of every Investor weather KMI KMP or KMR, finally responded. To be perceived regardless what form in which you elect to invest.
    KMI can benefit handsomely off KMP in the form of increase percentage of distributions payout on a straight up 1099. The main controversy was forward earnings guidance not which shares were most beneficial, and now we have that answer. The Barron's report accomplished confusing investors concerning the structure of the Company. which shares represented what.


    Suddenly it's no longer dead money & perhaps the turn around has arrived. What a fantastic opportunity to acquire more shares ! the impact appears quite positive.
    14 Mar 2014, 05:10 PM Reply Like
  • raykrv6a
    , contributor
    Comments (3665) | Send Message
    It was nice to see KM confirm earnings. I feel better about the additional KMI I had picked up.
    14 Mar 2014, 05:53 PM Reply Like
  • boy1der
    , contributor
    Comments (43) | Send Message
    Nicely stated RK, Long KMI & KMP!
    15 Mar 2014, 01:52 AM Reply Like
  • rubident
    , contributor
    Comments (12) | Send Message
    KMI is now 31.70 and pays 5.3% dividend. KMP is now 74.25 and pays 7.37%. When you talk about a higher dividend growth rate in KMI, it seems to me that KMI has a long way to go to catch up with the dividend being paid by KMP. Or, are you saying is that the share price of KMI will appreciate more than KMP, giving an overall better return? Also, if you get a K-1 from KMP, how do you enter that on your tax return? Are you paying the same tax rate as dividends? If you have KMR, I assume you are not liable to pay tax on the gain until you sell it. At what tax rate is the gain: dividend, capital gain, or ordinary income? Thanks
    16 Mar 2014, 11:45 AM Reply Like
  • Anasazi101
    , contributor
    Comments (3592) | Send Message
    Well I'm not exactly sure, seen some of these games before; More then once..
    I'm not really all that fond of a Company coming out to do "major damage control."
    Usually the street will back that up or investors will....
    I'm not really seeing NEITHER...


    So another point to ponder: Is if you have only been in Kinder for about a year to maybe three?? You really are kind of losing your azz in some ways...


    And even picking up more KMR after being way long on KMP...
    I'm not that much of a "happy camper" over the shorter period...
    Maybe when I eliminated KMI a couple years ago, I should have paid a little closer attention to what maybe your buddy Rich is doing...??


    We have several investments that have performed much better the last several years.
    And I really don't "expect" this out of what I consider a "more mature" company,
    And getting kind of tired of the drumbeats, Con and Pro....
    Plus the "chumming" of the waters so to speak..
    21 Mar 2014, 02:08 AM Reply Like
  • raykrv6a
    , contributor
    Comments (3665) | Send Message
    KM guided, Morningstar came out with new valuations. Just time to sit and collect the divvy's now.
    21 Mar 2014, 02:11 AM Reply Like
  • Anasazi101
    , contributor
    Comments (3592) | Send Message
    Thanks...will consider.
    21 Mar 2014, 02:30 AM Reply Like
  • Ruffdog
    , contributor
    Comments (3769) | Send Message
    The difference between "Kenny Boy Lay" and Rich Kinder is that Rich has a lot of skin in the game.


    Expect a great first quarter from Kinder. All pipeline should be running at above their Firm Transmission Rights capacity, so that KM is collecting extra transmission revenues for the above allocated transmission and it will show up on the bottom line.
    22 Mar 2014, 11:43 AM Reply Like
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