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Kinder Morgan President C. Park Shaper doesn't understand why Kinder Morgan Management (KMR)...

Kinder Morgan President C. Park Shaper doesn't understand why Kinder Morgan Management (KMR) trades at a discount to Kinder Morgan Energy Partners (KMP), he told Seeking Alpha in an interview. "KMR shares are pari passu with KMP units," and have the "added advantage of allowing you to control when you pay your taxes."
Comments (1)
  • Jefferson Ridge
    , contributor
    Comments (10) | Send Message
     
    KMR trades at a discount to KMP because the company is underspending maintenance capex - reducing the future viability of its assets to fund a higher dividend today. Thus, because the KMR dividend is paid in stock, you are getting less worth in the future.
    15 Apr 2012, 03:25 PM Reply Like
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