Seeking Alpha

Richard Kinder made $1.5B this morning after consolidating pipeline empire

  • Not a bad way to start one's week: Rich Kinder made $1.5B this morning from the mega-deal that will streamline all the publicly traded Kinder Morgan entities into one company.
  • The stocks - Kinder Morgan (KMI +8.1%), Kinder Morgan Partners (KMP +16.5%), Kinder Morgan Management (KMR +22.9%) and El Paso Pipeline Partners (EPB +20.1%) - are all sharply higher, as the general view is that investors like the streamlined structure and that the company will now have a lower cost of capital.
  • Kinder is the largest KMI shareholder with 243.1M shares, a ~24% stake.
Comments (32)
  • seethrudanoise
    , contributor
    Comments (87) | Send Message
     
    congrats Rich!
    11 Aug, 11:31 AM Reply Like
  • Disturber
    , contributor
    Comments (178) | Send Message
     
    Well, well well. Looks like the short house of Stink-eye got seriously hosed this morning by Mr. Kinder, who knows what he knows!!!
    11 Aug, 11:33 AM Reply Like
  • SaltyDog62
    , contributor
    Comments (740) | Send Message
     
    Dat guy better go back to playing hockey
    11 Aug, 11:34 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1410) | Send Message
     
    The real profits have yet to come. Being free from the confines of the various structures will free up The Kinder money making machines into many more lucrative opportunities that otherwise would have likely been passed on. There is a good reason for the premiums.
    11 Aug, 11:38 AM Reply Like
  • searcher
    , contributor
    Comments (1635) | Send Message
     
    Yes, it's amazing how short sighted some of these analysts can be giving little, if any, credit to demonstrated expertise, tenacity, creativity, and integrity of the executive. Full access to banking and securities markets will enable this 8,000 lb. (that's right 'K') gorilla to finance and hypothecate prosperous growth.
    11 Aug, 06:59 PM Reply Like
  • Pablomike
    , contributor
    Comments (1747) | Send Message
     
    Capt.
    But you lose the tax advantage of the MLP.
    11 Aug, 07:50 PM Reply Like
  • raykrv6a
    , contributor
    Comments (2824) | Send Message
     
    Richard is a out of the box thinker and no one expected KM to do this. I like his style. Congrats to Richard.
    11 Aug, 11:38 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2652) | Send Message
     
    when asked about future acquisitions and how the new lower cost of capital allows more opportunity for projects, Kinder said: "just watch what we can do now"
    11 Aug, 11:42 AM Reply Like
  • George Edwards
    , contributor
    Comments (30) | Send Message
     
    Mr. Kinder made me a lot of money, not just this morning, but over the past 12 years I have owned KMP units. And not just capital gains, but a very nice income stream, steadily increasing over the years.
    11 Aug, 11:43 AM Reply Like
  • 7612841
    , contributor
    Comments (53) | Send Message
     
    Is it true that the short sellers at Hedgeye were puking up their breakfast this morning????? Does anyone know anything about this?
    11 Aug, 11:44 AM Reply Like
  • cjrunner
    , contributor
    Comments (44) | Send Message
     
    I wonder how Kevin Kaiser, Hedge Eye, and their loyal followers are enjoying their margin calls?
    11 Aug, 11:46 AM Reply Like
  • Anasazi101
    , contributor
    Comments (769) | Send Message
     
    I have questioned what has happened, over the last year or so...But....
    NOW I think a lot of answers have fallen into place...
    Long term holder of KMP...
    Sold all KMI about a couple years ago..?
    And recently buying KMR over the last 6 months.
    What's not to like...?
    R. Kinder was not the only one making money pre-market this A.M.
    WE ALL WERE..........YaHOOOOOO !!!
    11 Aug, 11:53 AM Reply Like
  • Arthur Cutton
    , contributor
    Comments (148) | Send Message
     
    It would be just for Hedge Eye and their analyst to be 150% short the Kinder complex today. As the man said, "You sell. I'll buy and we'll see how it turns out". Up yers Stinkeye!
    11 Aug, 11:59 AM Reply Like
  • PACKER man
    , contributor
    Comments (149) | Send Message
     
    So glad that the idiots (with all due apologies to idiots!) at Hedgeye got their comeuppance!
    Could not have happened to a better bunch of idiots...and all this has come out of the ashes of Enron (Rich Kinder is an alum, an honest one who is not in jail as some of the others are)
    11 Aug, 12:10 PM Reply Like
  • Curtlevy
    , contributor
    Comments (42) | Send Message
     
    Hedgeye should be thanked. They gave me the opportunity to back up the truck on KMI, KMR.
    Tens of thousands thanks to Hedgeye!
    11 Aug, 02:14 PM Reply Like
  • harvestdividen
    , contributor
    Comments (85) | Send Message
     
    hats off to Richard Kinder!
    11 Aug, 12:19 PM Reply Like
  • Luddite
    , contributor
    Comments (2) | Send Message
     
    Bought KMI early this year thru July 1 based on some of the positive articles of SA, R Kinder buying and good analysis of WSJ/Hedgeye take down.

     

    Thanks to all
    11 Aug, 01:00 PM Reply Like
  • Total Return Investor
    , contributor
    Comments (774) | Send Message
     
    Long EPB well before the pre-Kinder days. There were times when the only reason I stayed with it the last couple of years were the glowing endorsements of Richard Kinder by SA readers. Their endorsements have been vindicated. Looking forward to holding KMI for the indefinite future and breathing a sigh of relief that I will soon be out of EPB with a nice return.
    11 Aug, 01:10 PM Reply Like
  • rbanet
    , contributor
    Comments (6) | Send Message
     
    Thank you Mr. Kinder!! You made my month!!!
    11 Aug, 01:46 PM Reply Like
  • smurf
    , contributor
    Comments (4130) | Send Message
     
    What happened to all the grousing about Rich Kinder stuffing his pockets with all the money from KMP and EPB?

     

    What a difference an announcement makes!
    11 Aug, 02:08 PM Reply Like
  • raykrv6a
    , contributor
    Comments (2824) | Send Message
     
    No, what a difference it makes when I'm stuffing my pockets with cash.........
    11 Aug, 02:17 PM Reply Like
  • Diggerdugit
    , contributor
    Comments (62) | Send Message
     
    And guess what?? The BOD only pays him $1 per year for all of his out of the box thinking. I think we should double his salary--- Then there is the CEO of LNG making more then Richard Kinder and doing far,far less.
    11 Aug, 08:34 PM Reply Like
  • NV_GARY
    , contributor
    Comments (2486) | Send Message
     
    digger-
    under the new c-corp he will have a huge salary- I saw an article, can't locate it now.
    12 Aug, 02:07 PM Reply Like
  • Anasazi101
    , contributor
    Comments (769) | Send Message
     
    "Out of the Box" that's old corporate speak like a toy out of Cracker Jacks...

     

    Believe this to be "cold and calculating" like a snake or a lizard....
    No emotions, just "close the deal"....I make money(RK) and so does everyone else, that is on the Merry-go-Round...
    Pretty simple really....IMO.
    BTW....Most CEOs make too much money now, but they love the "drumbeaters".

     

    Digger....not trying to be mean on condescending, just as I see it....$2 bucks is good....
    I've been looking through these "rose-colored glasses" too friggin' long...
    Oh yeah, long KMP and KMR....And loving it.
    11 Aug, 10:44 PM Reply Like
  • raykrv6a
    , contributor
    Comments (2824) | Send Message
     
    Ha. You interview, hire and fire enough people, you know that only 1 out of 10 is going to be a real performer and 1 out of a 1000 is going to be exceptional.

     

    Rules are boundaries and most people accept the rules. Richard is willing to go beyond. i like Richard.
    12 Aug, 01:12 PM Reply Like
  • tway resources
    , contributor
    Comments (2) | Send Message
     
    GREAT!!!
    12 Aug, 02:17 AM Reply Like
  • Diggerdugit
    , contributor
    Comments (62) | Send Message
     
    ANASAZI101:
    All I know is RK has made me a lot of $ over the last several years. He seems to put His money where his mouth is, which many of these over paid CEO do Not do. I'm a very Nationalistic individual. I want our country to become energy independent, which we seem to be on the road to doing. With that in mind we are going to really need to grow our energy infrastructure and mid-stream assets. Richard Kinder has a great track record in acquiring the necessary assets to do that. He is a Through Bred from that stand point. As my daddy used to say " you will never win the Kentucky Derby on a jacka$$" It takes a Through Bred to do that. So I'm long RK via KMP & KMI
    12 Aug, 12:55 PM Reply Like
  • Anasazi101
    , contributor
    Comments (769) | Send Message
     
    Yup I think we have all done pretty well with investments in Kinder over the last few years...Although after a pull back in recent months, this new approach has certainly brought some of our lost value, back-in-line.

     

    And we invest in enough other entities, to appreciate any increase in values to our bottom lines...Kinder's are, but a couple..
    And we have done just as well with others...
    Major concern on this deal, will be tax ramifications and how all treatments will be handled, eventually on payouts or exchanges..

     

    I wouldn't count Rich Kinder out and say he is doing all this as goodwill for share and unit holders...He's making a "huge bundle" for himself.
    As maybe the Board may "only pay" him a $1 a year....???
    He has been richly rewarded with other compensations, in stocks, options and other instruments...
    He HAS BEEN PAID WELL, and I think he is looking out for Number #1.
    He has became a multi billionaire in a very short time frame, with these investments..
    long Ks....
    13 Aug, 09:43 AM Reply Like
  • Diggerdugit
    , contributor
    Comments (62) | Send Message
     
    Pulled this off of Google when searching for RK's compensation package--

     

    The Kinder Morgan companies have a combined market value of $106 billion. The Kinder Morgan CEO (Richard Kinder) takes a $1-a-year salary and earns no annual bonus from any of the four companies. Richard Kinder is the largest KMI shareholder with 243.1 million shares – a ~24% stake. KMI is currently paying a $1.72 ann. dividend. RK's cut = $418,132,000 annually. For us common folks that is like hitting the MEGA Powerball jackpot every year. Richard confirmed his salary and annual bonus of $0 on CNBC Monday. He may have some stock options granted to him as CEO, but so do their employees and BOD members. Richards dividend compensation is the same as any other shareholder....he just owns more shares than the rest of us. Now, compare that to the CEO of Cheniere Energy CEO Charif Souki who is paid $142,000,000 annually and the Company has yet to make dollar one. Note that I said "paid". this is not a earned dividend.

     

    Just thought the numbers are interesting to those who believe RK is over paid or over compensated. Compared to Mr. Souki---he is NOT.
    13 Aug, 02:32 PM Reply Like
  • searcher
    , contributor
    Comments (1635) | Send Message
     
    Not only that, but those reading this right now and salaried are probably overpaid, as well.
    13 Aug, 02:56 PM Reply Like
  • raykrv6a
    , contributor
    Comments (2824) | Send Message
     
    Most people don't have a plan. Some people like RK plan down the road 3 yrs, 5 yrs, 10 yrs. That's how some people make it and rest are either jealous, want a handout, or both.
    13 Aug, 03:08 PM Reply Like
  • Anasazi101
    , contributor
    Comments (769) | Send Message
     
    Do you really think Rich Kinder, needs to be compensated any more per year than he is already...??
    And just where do you think those Equity holdings came from..?
    Aren't the terms "Award or Awarded" tossed around a lot...?
    And I do hope that all noticed that those are 6 zeros, behind the $418..

     

    Hardly jealous, for what reason..?? That's a part of the World that we will never take part in...
    We are fairly happy living in our little corner of it...
    And lucky to be able to "suck in air every morning" when we wake up..
    15 Aug, 10:11 AM Reply Like
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