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Kinder Morgan, Inc. (KMI)

  • Thu, Apr. 16, 10:39 AM
    • Kinder Morgan (KMI +0.5%) will continue to look for acquisitions in the coming months, CEO Richard Kinder said in the company's earnings conference call, after this year already paying $3.1B for the Bakken pipes owned by Harold Hamm’s Hiland Partners and $158M for Royal Vopak’s Gulf Coast storage.
    • Kinder says an impediment to more deals is the easy access to capital that many companies have despite the collapse in crude prices that has strained balance sheets across the industry.
    • KMI has not been immune to lower oil and gas prices, as its carbon dioxide business has suffered along with sliding prices, and the company now says it will not move forward with three projects valued at ~$900M.
    • Direct comparisons to previous quarters are difficult since KMI abandoned its fragmented MLP structure and became a single company during Q4 2014, but the CEO says Q1 results were strong: "We more than doubled the number of shares, we increased the dividend by 14%, and we still substantially increased our excess coverage."
  • Wed, Apr. 15, 6:54 PM
    • Kinder Morgan (NYSE:KMI-0.7% AH after reporting higher Q1 earnings due to strong performances in most of its businesses, but EPS fell to $0.22 from $0.28 on an increase in shares outstanding, and revenue missed analyst expectations.
    • KMI says it is is on track to meet its full-year dividend target of $2/share, or $0.50/quarter, and earned distributable cash flow of $0.58/share for Q1, which equates to coverage in excess of dividends totaling $206M.
    • Segment earnings for KMI's natural gas pipeline business rose 1% Y/Y to $1.09B, led by contributions from the Hiland acquisition and strong performance at the El Paso natural gas pipeline business; however, earnings for the carbon dioxide business fell 23% to $281M due to lower commodity prices.
    • Pipeline products segment earnings rose 20% to $204M, and earnings for the terminals business grew 16% to $264M.
    • KMI says its current backlog of expansion and joint venture investments is $18.3B.
    • Also: Kinder Morgan declares $0.48 dividend
  • Wed, Apr. 15, 4:24 PM
    • Kinder Morgan (NYSE:KMI): Q1 EPS of $0.22 misses by $0.01.
    • Revenue of $3.6B (-11.1% Y/Y) misses by $950M.
    • Shares -0.3%.
    • Press Release
  • Wed, Apr. 15, 4:12 PM
    • Kinder Morgan (NYSE:KMI) declares $0.48/share quarterly dividend, 6.7% increase from prior dividend of $0.45.
    • Forward yield 4.42%
    • Payable May 15; for shareholders of record April 30; ex-div April 28.
  • Tue, Apr. 14, 5:35 PM
  • Thu, Apr. 2, 11:25 AM
    • Kinder Morgan (NYSE:KMI) is initiated with a Buy rating and $47 price target at Stifel, which cites KMI's well covered and growing dividend
    • Stifel expects KMI to pay respective distributions of $2.00 and $2.20 in 2015 and 2016, which would indicate approximate growth rates of 15% and 10%.
    • The firm believes that, regardless of commodity price moves, KMI's fee-oriented, take-or-pay business model should support compounded annual distribution growth of 10% over the next five years.
    • Stifel thinks KMI's new structure after the acquisition of the company's three MLPs vehicles will enable it to compete for growth capital projects and participate in the M&A market, as highlighted by the recent purchase of Hiland Partners.
  • Tue, Mar. 31, 6:34 PM
    • Kinder Morgan (NYSE:KMI) and Keyera (OTC:KEYUF) announce a 50-50 joint venture to build a new crude oil storage terminal in Edmonton, Alberta.
    • The JV will build 4.8M barrels of crude oil storage at the new Base Line Terminal, and says "strong, creditworthy customers" have entered into long-term, firm take-or-pay agreements; capacity at the new terminal has potential to increase to 6.6M barrels, depending on future demand.
    • KMI says it will invest C$342M for an initial 12-tank buildout, with commissioning expected to begin in H2 of 2017; separately, KMI will invest up to an additional C$69M for connecting pipelines and related infrastructure, for a total project investment of C$411M.
    • The terminal is under development on land owned by Keyera and will be operated by KMI.
  • Thu, Mar. 26, 2:36 PM
    • Canada's government says it will give the National Energy Board until next year to deliver up-to-date guidelines for oil pipeline companies to improve safety and protect the environment.
    • The instructions coincide with several major pipeline expansion projects proposed in Canada by companies such as Kinder Morgan (NYSE:KMI), Enbridge (NYSE:ENB) and TransCanada (NYSE:TRP).
    • The Conservative government has promoted expansion of the oil and gas industry, pledging to make the country an "energy superpower."
    • Meanwhile, the NEB reportedly is investigating up to a dozen new allegations of natural gas pipeline safety code violations at TRP, which would mark the second time in recent years the regulator has probed safety practices at TRP following complaints by a whistleblower.
  • Wed, Mar. 25, 11:36 AM
  • Mon, Mar. 23, 7:21 PM
    • Kinder Morgan (NYSE:KMI) is initiated with a Buy rating and $50 price target at Argus, which likes KMI's stable group of mainly fee-based midstream assets that provide both geographic diversity and the potential for further expansion.
    • The firm looks for KMI to expand its footprint both organically and through acquisitions, leveraging its position as the largest midstream operator in North America, and believes that increased scale provides a competitive advantage and thus has a positive view of KMI's growth strategy.
  • Tue, Mar. 17, 10:58 AM
    • The Keystone pipeline disappointment is hardly a death knell for TransCanada (NYSE:TRP), as the company remains one of the top holdings in Skip Aylesworth’s Hennessy Gas Utility fund, which climbed 21% last year as distribution gains trumped price drops.
    • TRP is "a fine, healthy company and, yes, this is a hiccup, and they would love to see Keystone happen, but it is just a part of their business," Aylesworth tells Barron's.
    • Of one Aylesworth's favorite energy investments actually is Berkshire Hathaway (BRK.A, BRK.B), which is heavily involved in the distribution of natural gas and owner of Burlington Northern, which is exploring using natural gas to fuel long-distance freight trains.
    • Other favorites: ENB, WMB, LNG, NJR, KMI, SE
  • Mon, Mar. 9, 7:15 PM
    • Kinder Morgan (NYSE:KMI) sold its first-ever euro denominated bond today, issuing €1.25M of bonds divided into seven- and 12-year tranches, and orders exceeded €4.75M.
    • Yields on euro denominated bonds have fallen to record lows as the ECB has entered the market with bond buying program, and U.S. companies have piled in to take advantage; the boom in issuance reflects how U.S. companies are now able to sell eurobonds offering yields 1.5%-1.75% lower than they would have to pay on equivalent bonds issued in the U.S.
    • KMI priced the $750M seven-year tranche at 110 bps over the European benchmark mid-swaps and the $500M, 12-year tranche at 145 bps over mid-swaps.
  • Thu, Mar. 5, 8:08 AM
  • Wed, Mar. 4, 11:22 AM
    • Kinder Morgan (KMI -0.6%) wants to drill through Burnaby Mountain in British Columbia to reach an oil-loading ship terminal, but WSJ reports that it is facing more challenges than the mountain itself, as it also is battling resistance from Vancouver officials and protestors opposed to fossil fuel development.
    • Burnaby Mountain has become a symbolic battlefield in a much larger debate about energy resources in North America, opponents and supporters of the pipeline plan say.
    • Canadian oil producers are counting on KMI’s $4.3B proposal to triple the capacity of the existing Trans Mountain pipeline, which connects Alberta’s oil sands to a Pacific coast terminal, as the fate of the Keystone XL pipeline remains in limbo.
    • More than a dozen oil companies have binding deals for up to 20 years with the pipeline, including Exxon (NYSE:XOM) affiliate Imperial Oil (NYSEMKT:IMO), Cenovus Energy (NYSE:CVE) and Canadian Natural Resources (NYSE:CNQ), who view the project as a vital link to new markets in Asia.
  • Tue, Mar. 3, 2:57 PM
    • Kinder Morgan (KMI +0.5%) says it will conduct more public information sessions discussing its proposed a 70-mile natural gas pipeline through southern New Hampshire.
    • The state’s congressional delegation last week asked the company to do more public outreach beyond five meetings conducted recently in communities affected by the proposal.
    • Supporters say the controversial pipeline is needed to increase capacity in a region that pays some of the highest energy costs in the U.S., while opponents fear harm to the environment and property values.
  • Fri, Feb. 20, 6:51 PM
    • Kinder Morgan (NYSE:KMI) is reinstated with an Overweight rating and $50 target price at Barclays, which says KMI's expected 10% annual dividend growth through 2020 is supported by a large fee-based backlog of projects and limited commodity exposure.
    • While KMI's leverage is on the high side, the amount of dividend coverage exceeds that of most of its peers, and only 6% of cash flow is exposed to commodity prices this year, positioning KMI to weather the potential volatility in the commodity markets during the months ahead, the firm says.
    • Barclays says KMI's ~$500M coverage expectation and leverage metric really can be at risk only if volumes are significantly lower than anticipated or a large number of projects are not brought into service on time, both of which it considers unlikely.
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Company Description
Kinder Morgan, Inc., owns interests in an energy transportation and storage company. The Company, through its subsidiaries, owns and operates pipelines that transport natural gas, gasoline, crude oil, carbon dioxide and other products.