Kinder Morgan Energy Partners L.PNYSE
Nov. 22, 2014, 3:14 PM
- Test drilling began Friday night. Kinder Morgan (NYSE:KMI) intends to work 24 hours a day over the next 10 to 12 days to complete its work.
- KMI is test drilling 250 meters into the ground as part of its survey work for a proposed expanded pipeline, which would see it bore a tunnel under the mountain to reroute its existing Trans Mountain pipeline.
- KMI received a court injunction a week ago to have protesters removed from the site. More than 30 protesters have been arrested since Thursday.
Nov. 20, 2014, 5:42 PM
Nov. 20, 2014, 2:09 PM
- Kinder Morgan (KMI -0.9%) confirms that shareholders and unitholders at KMI, Kinder Morgan Partners (NYSE:KMP), Kinder Morgan Management (NYSE:KMR) and El Paso Pipeline (NYSE:EPB) approved all proposals related to bringing all four pipeline companies under one roof.
- KMI also projects a 16% dividend increase to $2/share for 2015, and expects to grow the dividend by ~10%/year during 2015-20 while producing excess coverage of more than $2B.
Nov. 19, 2014, 12:45 PM
- Kinder Morgan Partners (KMP +0.8%) rises to new 52-week highs a day ahead of the shareholder vote on the merger that would consolidate Richard Kinder's oil pipeline empire into a single entity.
- The closing of the Kinder Morgan (KMI +0.6%) merger is expected to occur on Nov. 26, which would make it the final trading day for KMP, El Paso Pipeline (EPB +0.7%) and Kinder Morgan Management (KMR +0.6%).
Nov. 14, 2014, 5:11 PM
- Kinder Morgan (KMI, KMP) says it will resume preliminary work on its Trans Mountain pipeline after a British Columbia court granted an injunction against protesters blocking work crews at the Burnaby Mountain conservation area.
- The injunction is Kinder’s latest win against the project’s opponents; the city of Burnaby sought to block work on the site after crews cut down trees, but lost before both a court and the national energy regulator.
- Kinder Morgan hopes to triple the size of its 300K bbl/day Trans Mountain pipeline in a C$5.4B expansion that would carry more crude from Alberta to the port of Vancouver and on to Asian markets.
Nov. 11, 2014, 3:21 PM
- Prospects for energy MLPs remain bright despite lower crude oil prices, Credit Suisse’s John Edwards says, as Q3 distribution growth in the sector has averaged ~11% Y/Y and direct cash flow per unit rose 20% Y/Y on average.
- The analyst says he saw little change in capex plans from energy MLPs in Q3 reports: Kinder Morgan (KMI, KMP) said it had seen no impact to business, Enterprise Products Partners (NYSE:EPD) continues to expect to invest $3.7B-$4.2B for 2015 and 2016 - the same as indicated before the oil price pullback - and Spectra Energy Partners (NYSE:SEP) remains on track in its drive to a $35B program.
- Credit Suisse upgrades Midcoast Energy Partners (NYSE:MEP), ONEOK Partners (NYSE:OKS), Targa Resources Partners (NYSE:NGLS) and Western Gas Partners (NYSE:WES) to Outperform from Neutral, while reducing Magellan Midstream Partners (NYSE:MMP) to Neutral from Outperform.
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Nov. 10, 2014, 6:21 PM
- Kinder Morgan (KMI, KMP) is overstating the economic benefits and and downplaying the costs of its proposed Trans Mountain pipeline expansion, according to a new report from Goodman Group consultants and Simon Fraser University.
- The authors say Kinder Morgan’s claim of 36K person-years of employment that would be created in British Columbia during the project’s development should be closer to 12K.
- On the cost side, the report also takes issue with Kinder Morgan’s worst-case spill scenario envisions costs of $100M-$300M, envisioning multi-billions dollars in costs if oil spills in a populated area.
Nov. 6, 2014, 3:16 PM
- A lawyer representing Kinder Morgan (KMI, KMP) subsidiary Trans Mountain tells the British Columbia Supreme Court that it should scrutinize the concerted effort by protesters to stop the company from its lawful activities, which he describes as “a conspiracy to harm.”
- While people may be motivated by environmental objectives such as climate change, "but the actual specific dominant purpose here... is to harm Kinder Morgan by preventing Trans Mountain [from doing] its work," the lawyer tells the court as it considers an injunction application against protesters blockading pipeline work.
- Five protesters are named as defendants in the court action that precedes a multimillion-dollar civil lawsuit over claims of trespass, assault and intimidation against employees prevented from conducting survey work on Burnaby Mountain.
Nov. 6, 2014, 9:45 AM
- The Kinder Morgan (KMI, KMP) consolidation continues to move forward after a Delaware state judge said yesterday that investors who had filed a class action suit attempting to stop the $44B deal don’t have a case.
- The plaintiffs asked sought a court order temporarily stopping the deal they claimed would have big tax consequences for them after years of holding units in the company’s main pipeline operating partnership; taxes on such units are deferred until an investor’s death or until they are sold, but Kinder Morgan’s transaction would trigger the delayed taxes.
- The judge’s order means a Nov. 20 shareholder vote on the deal will proceed, although the judge did not dismiss the case outright or make any rulings on its core claims.
Nov. 5, 2014, 2:45 PM
- Kinder Morgan Partners (KMI, KMP) will expand its fleet of Jones Act tankers after agreeing to purchase two tankers from Crowley Maritime for ~$270M.
- The vessels each have ~330K barrels of cargo capacity and will join Kinder Morgan's existing fleet of five operating tankers.
- The deal is expected to be immediately accretive to cash available to KMP unitholders upon closing, which is expected to be effective Nov. 1.
Oct. 31, 2014, 9:57 AM
- Kinder Morgan (KMI, KMP) seeks a court order to stop Vancouver-area residents from blocking survey work for its Trans Mountain expansion project after protesters stopped crews from working all day Wednesday.
- The injunction application is the latest in a bitter battle over KMI’s plans to expand the pipeline through Burnaby Mountain.
Oct. 21, 2014, 11:49 AM
- Kinder Morgan Partners' (KMI, KMP) C$5.4B ($4.8B) Trans Mountain expansion, once seen as the best near-term hope for sending more of Canada's oil sands to Asia, is hitting a mountain of opposition from aboriginal communities intent on using the courts to block the proposed expansion.
- Other opponents include environmental groups and municipal leaders like the mayor of Burnaby, the Vancouver suburb that houses the existing pipeline terminus and its marine facilities.
- Although objections from local politicians and activists already have caused the National Energy Board to delay its final report on the project by more than six months to Jan. 2016, KMP says it plans to bring the project online in 2018 and remains confident it will stay on budget.
Oct. 15, 2014, 6:37 PM
- Kinder Morgan (NYSE:KMI) says Q3 earnings rose 15% Y/Y thanks to strong demand at Kinder Morgan Partners (NYSE:KMP), partly offset by a decline at El Paso Pipeline Partners (NYSE:EPB).
- KMP also reports an increase in distributable cash flow per unit, rising 10% Y/Y to $607M.
- CEO Richard Kinder says the company had identified a combined $17.9B in expansion and joint venture investments, up from $17B at the end of Q2 and $14.4B a year ago; the growth included an increase in KMP's backlog to $16.3B from $15.4B.
- Says earnings at its natural gas pipeline business rose 9%, amid strong results at its Tennessee Gas Pipeline, amid continuing growth in the Marcellus and Utica shale plays; overall natural gas transport volumes improved 10%, while gathering volumes added ~6%.
- Kinder Morgan plans to put all its publicly traded units under one roof by the end of the year, which will end its MLP structure.
- KMI +0.7% AH.
Oct. 15, 2014, 4:53 PM
- Kinder Morgan Energy Partners (NYSE:KMP) declares $1.40/share quarterly distribution, 0.72% increase form prior distribution of $1.39.
- Forward yield 6.49%
- Payable Nov 14 ; for shareholders of record Oct 31; ex-div Oct 29.
Oct. 15, 2014, 4:12 PM
- Kinder Morgan Energy Partners (NYSE:KMP): Q3 EPS of $0.57 misses by $0.07.
- Revenue of $3.93B (+16.3% Y/Y) beats by $360M.
Oct. 15, 2014, 3:18 PM
- MLPs have been crushed this week, and today Citi warns that the rapid drop in oil prices has created a "negative feedback loop on spending” and that a 15% drop in oil-directed drilling activity would result in a 50% drop in oil production growth.
- It Brent oil prices stabilize at $85-$90, Citi thinks the MLPs exposed mostly to oil and natural gas liquids would rebound modestly as a new equilibrium is developed between producers and midstream companies on spending; if crude continues to slide, Citi says MLPs exposed to natural gas would outperform.
- Miller Howard, a money manager specializing in income-producing stocks, is blaming newbie investors who don't fully understand MLPs and are "in it for the yield."
- Most MLP contracts are very long term, meaning that a temporary change in the oil price has no effect on those sources of revenue, Howard says, adding that "there is far from enough infrastructure to serve the domestic energy industry, even if it slows a bit."
- Some big MLPs have turned higher even as most stocks plunge: KMI +1.8%, KMP +1.5%, EPD +4.8%, PAA +3.7%, ETP +4%, ETE +8.6%, RGP +7.2%, CQP +6.6%, TEP +5.2%, PSXP +4.1%, MMP +7.1%, PAGP +4.9%, EEP +2.1%.
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