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Kinder Morgan Partners (KMP) -2.4% premarket after its $380M sale of the Express-Platte pipeline...

Kinder Morgan Partners (KMP) -2.4% premarket after its $380M sale of the Express-Platte pipeline system to Spectra Energy (SE). "There’s a whiff of desperation about this deal," 24/7's Paul Ausick writes. "The sale seems to be an admission that Kinder Morgan needs cash and this is an attractive property that it can easily convert into cash."
Comments (10)
  • Mike Maher
    , contributor
    Comments (2428) | Send Message
     
    $380 million for an asset that produces $15 mil a year in cash flow doesnt seem desperate to me, that seems like a very strong price.
    11 Dec 2012, 09:01 AM Reply Like
  • Energysystems
    , contributor
    Comments (889) | Send Message
     
    I agree, especially on an asset they only owned 1/3 of.
    11 Dec 2012, 09:07 AM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
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    --another excellent move by KMP management ,

     

    and an idiotic "story" by 24/7 authors

     

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    11 Dec 2012, 10:05 AM Reply Like
  • Daniel Wilson
    , contributor
    Comments (73) | Send Message
     
    They wouldn't sell a producing asset just to fund a growth project unless the present value of the growth project justified the sale.

     

    The stock is down a couple of points due to KMP's planned secondary offering announced in June that priced last night: http://1.usa.gov/TSI4Vg
    11 Dec 2012, 09:12 AM Reply Like
  • david reid
    , contributor
    Comments (5) | Send Message
     
    Just an opportunity to pick up some KMP if you are a long term investor.
    11 Dec 2012, 09:26 AM Reply Like
  • zorro2828
    , contributor
    Comments (459) | Send Message
     
    It is not the sale that concerns me, it is what management does with the funds.. ( IE. FCX and the bonehead purchase of oil )
    11 Dec 2012, 09:39 AM Reply Like
  • Remyngton
    , contributor
    Comments (354) | Send Message
     
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    Excellent sale by KMP , one of the smartest operators around

     

    " desperate " ... hmmmm .... more like , brilliant

     

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    11 Dec 2012, 09:49 AM Reply Like
  • Uncle Pie
    , contributor
    Comments (2543) | Send Message
     
    $380 million is peanuts for Kinder Morgan.
    11 Dec 2012, 09:53 AM Reply Like
  • Crude Oil Trader
    , contributor
    Comments (305) | Send Message
     
    LOL.....Possibly the stupidest thing I have ever seen written on Seeking Alpha. Another brilliant move by the guys at KMP. It would take decades to recoup 380 at 15 a year. And they know what to do with it.
    11 Dec 2012, 10:18 AM Reply Like
  • katzm
    , contributor
    Comments (7) | Send Message
     
    On one hand, since KMP/KMR's two other co-owners --- including the Ontario Teachers’ Pension Plan Board and Borealis Infrastructure, the infrastructure investment arm of the OMERS pension plan --- are selling out their one-third interests to Spectra as well, it suggests that all three owners are seeing the acquistion price as attractive. On the other hand, I wonder why it is that the management of relatively small $17.85 billion Spectra Energy can figure out something more profitable to do with the Express-Platte pipeline system that Kinder Morgan wasn't able to figure out. Spectra must have some additional pipeline assets in their network that make this acquisition more synergistic to them.
    12 Dec 2012, 05:30 AM Reply Like
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