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
- MKM Partners chief market technician Jonathan Krinsky offers his picks and pans in the world of energy MLPs, based mostly on relative strength compared to the sector’s benchmark Alerian MLP Index, which has slumped for the past six months.
- Krinsky's Buy recommendations: ALDW, BPL, CPLP, ENB, ETE, KMI, PAGP, SEMG.
- However, he tags CNP, NRP, SDLP and TOO with Sell ratings.
- ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, MLPN, EMLP, MLPG, MLPX, MLPS, MLPY, AMU, YMLI, MLPJ, ZMLP, ENFR, AMZA, ATMP, MLPW, MLPC, IMLP, OSMS, YGRO, MLPO
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.
Tue, Feb. 10, 7:48 AM
- Kinder Morgan (NYSE:KMI) says it is purchasing three Houston storage terminals and an undeveloped site from Royal Vopak for $158M.
- The acquisition covers a 1M-plus barrel storage complex at Galena Park, Tex., that handles base oils, biodiesel and crude oil, immediately adjacent to KMI's Galena Park terminal complex; two Vopak terminals in North Carolina, and an undeveloped site at Perth Amboy, N.J.
- KMI says the deal will boost its storage capacity on the Houston Ship Channel to more than 45M barrels and 138M barrels in North America.
Mon, Feb. 9, 12:30 PM
- Alberta is in talks with Alaska about shipping oil sands crude through the state to the Pacific, as energy supporters struggle to convince opponents in Vancouver and Washington state of the merits of building new pipelines to ship crude out of the land-locked province.
- An Alaska plan that would involve constructing a pipeline along the Mackenzie River valley and then west to existing ports on the U.S. coast is "technically feasible, [but] whether it’s economically feasible has yet to be determined," Alberta Premier Jim Prentice tells Bloomberg.
- The route for a potential Alaska pipeline would cross through Canada’s Yukon and Northwest Territories, where both governments are supportive, Prentice says.
- Enbridge's (NYSE:ENB) planned Northern Gateway pipeline would terminate at B.C.'s Kitimat port, where groups oppose the project; Kitimat is ~1,000 miles southeast of the Alaskan port of Valdez.
- Alberta’s other pipeline options include TransCanada’s (NYSE:TRP) Energy East project to the Atlantic port of Saint John, New Brunswick; TRP's Keystone XL pipeline to the Gulf of Mexico; and Kinder Morgan’s (NYSE:KMI) Trans Mountain expansion to the port of Vancouver.
Wed, Jan. 28, 12:58 PM
- Kinder Morgan's (KMI -1.3%) proposed Freedom Pipeline, which would move West Texas crude to California, is getting more interest from west coast refiners, according to the head of the company's natural gas pipeline unit.
- A revamped proposal for the pipeline includes adding a facility at the front end in Texas to provide crude blends that better match the Alaska North Slope crude that California refineries typically process; the new proposal also involves shipping condensate that could be exported from California.
- If approved, the pipeline project would open another outlet for processed condensate exports that so far have been shipped from the U.S. Gulf coast.
Sat, Jan. 24, 8:25 AM
- In a low-yield world, the newly launched iBillionaire High Dividend Index - which tracks the trading moves of 25 investing-savvy billionaire investors such as Stanley Druckenmiller, James Dinan and Nelson Peltz - actually lives up to its name with a dividend yield of 5.34%.
- At 24%, the index has a high allocation of energy shares, including OXY, TRP, CNP, COP, BP, ATLS, CVI, WMB, APL, RIG and ARP.
- Also worth noting is that the index contains some high-yielding mortgage REITs, an area most investors hate right now but where billionaires seem to find value; examples are NRF, AGNC and CIM.
- No mutual fund or ETF tracks this index, but it offers a fishing pond of income investment ideas to research further.
- The top 20 holdings: TLM, CVC, GM, TIME, AEE, D, STAY, KMI, TROX, EXC, STNG, PPL, IRM, PFE, KKR, KAR, F, MIC, LO, ABBV.
Thu, Jan. 22, 6:49 PM
- Analysts generally are modestly positive on Kinder Morgan's (NYSE:KMI) $3B deal for Harold Hamm's Hiland Partners pipeline network, as "the accretion should support a slight acceleration to KMI's prior dividend forecast despite what otherwise looks like an expensive transaction."
- KMI shares ended barely above unchanged as the broader stock market roared higher, as investors may have thought that Richard Kinder was not conservative enough in assessing the deal; "It doesn’t look especially cheap on the up-front numbers," a Tudor Pickering analyst said, but "they’re trying to take advantage of what they view as a down market in the Bakken."
- For Continental Resources (NYSE:CLR) head man Hamm, selling off his personally owned pipelines gives him lots of dry powder in case he decides to buy any troubled smaller oil companies, plus the personal cash losses from his nasty divorce are well documented.
- But Hamm may have gained a better deal than anyone realizes: A judge in the divorce proceedings valued Hamm's 62% stake in Hiland at just $248M.
Wed, Jan. 21, 7:28 PM
- In Kinder Morgan’s (NYSE:KMI) first quarter as a unified company, the company reported unadjusted Q4 net income fell to $126M from $338M in the prior quarter.
- KMI's cash flow available for distribution rose to $1.278B, or $0.60/share, compared to $482M, or $0.46/share, for the same period in 2013.
- KMI says its current backlog of expansion and joint venture investments totals $17.6B, adding that the overwhelming majority of the cash its businesses generate is fee-based and not sensitive to commodity prices.
- Adjusted earnings at the natural gas pipeline business rose 5% Y/Y to $1.06B.
- Richard Kinder confirms he is stepping down from his CEO role in June, to be replaced by current COO Steve Kean; Kinder will become executive chairman, and says, "My name is on the door, and I don’t plan to go anywhere. As we say in Texas, I plan to die with my boots on."
- Also: Kinder Morgan declares $0.45 dividend
- Also: Kinder Morgan to buy Bakken oil services provider in $3B deal
- KMI -1.8% AH.
Wed, Jan. 21, 4:28 PM
- Kinder Morgan (NYSE:KMI) agrees to acquire Hiland Partners from Harold Hamm in a $3B deal, including debt.
- Hiland's assets, which are mostly fee based, consist of crude oil gathering and transportation pipelines and gas gathering and processing systems, primarily serving production from the Bakken formation in North Dakota and Montana.
- KMI says the acquisition creates a premier midstream platform in the Bakken with a significant amount of acreage dedicated under long-term gathering agreements.
- Hiland's customers include Continental Resources, Oasis Petroleum, XTO Energy, Whiting Petroleum and Hess. among others.
- KMI expects the acquisition to be modestly accretive to cash available to pay dividends in 2015 and 2016 and $0.06-$0.07 accretive beginning in 2017.
- Also: Kinder Morgan misses by $0.26, misses on revenue
KMI vs. ETF Alternatives
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.
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