Seeking Alpha

Kinder Morgan, Inc. (KMI)

  • 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
  • Wed, Jan. 21, 4:19 PM
    • Kinder Morgan (NYSE:KMI) declares $0.45/share quarterly dividend, 2.3% increase from prior dividend of $0.44.
    • Forward yield 4.29%
    • Payable Feb. 17; for shareholders of record Feb. 2; ex-div Jan. 29.
  • Wed, Jan. 21, 4:16 PM
    • Kinder Morgan (NYSE:KMI): Q4 EPS of $0.08 misses by $0.26.
    • Revenue of $3.95B (+2.1% Y/Y) misses by $350M.
    • Press Release
  • Tue, Jan. 20, 5:35 PM
  • Thu, Jan. 15, 11:42 AM
    • A new report from J.P. Morgan’s energy team reminds investors that despite the Q4 meltdown from declining crude oil prices, MLPs still clawed out a 5% total return in 2014, far better than the -8% total return for the overall energy sector.
    • Still, the firm is sticking with top blue chip MLPs and defensive natural gas names, tabbing six Outperform-rated stocks that can stand some volatility as part of a growth and income portfolio: EPD, KMI, PAA, BWP, DM, EQM.
    • Others are more pessimistic on the group: S&P Capital IQ's Stewart Glickman says there isn't a single E&P MLP that has healthy fundamentals, though some companies such as PAA and RGP are now cheap enough to be potentially good deals.
    • Renaissance Capital's Nick Einhorn thinks a better alternative is to invest in funds that own groups of the MLPs.
  • Sat, Jan. 10, 8:25 AM
    • Kinder Morgan (NYSE:KMI) tops Credit Suisse's list of its nine favorite energy and utility stocks to own for 2015, believing KMI’s recent MLP acquisitions will lower the company’s cost of capital and open the door for double-digit dividend growth and additional potential acquisitions.
    • Noble Corp. (NYSE:NE) is the top pick among offshore drillers, despite the fact that analysts don’t believe the inflection point in the drilling down-cycle is coming until at least 2016; fulfilling the firm's $30 price target would mean nearly 90% upside.
    • Also recommended: SUNE, EXC, RDS.A, RDS.B, TSO, DVN, PDCE, SLB.
    • SandRidge Energy (NYSE:SD) is one of Credit Suisse's five energy and utility stocks to avoid despite an upbeat quarterly report, believing the risk associated with SD’s extremely high leverage likely will lead to significant capex cuts, thus limiting production growth and cash flows.
    • The firm also would avoid CVRR, SFY, YGE and SO.
  • Dec. 31, 2014, 2:48 AM
    • The U.S. Bureau of Industry and Security said it will allow companies to sell oil condensate that has been processed through a basic distillation tower, giving them a green light for export without violating a four decade old ban.
    • The agency also published a list of answers to common questions about crude exports, providing guidelines for the first time on an area that has been blanketed in confusion, although many are saying there is still a lot of room for interpretation.
    • Previously: U.S. gives silent okay to condensate exports (Dec. 30 2014)
    • Related tickers: PXD, EPD, BHP, PSX, KMI, ETP, RGP, CVX
  • Dec. 30, 2014, 8:13 AM
    • The U.S. Commerce Department is telling some oil companies that they should consider exporting condensate without formal permission, Reuters reports.
    • Officials familiar with the law said the agency's discussions did not represent a change in policy since self-classification is allowed under U.S. export controls.
    • Despite the policy, Pioneer Natural Resources (NYSE:PXD) and Enterprise Products Partners (NYSE:EPD) obtained explicit permission from the agency to export in June, while last month BHP Billiton (NYSE:BHP) became the first company to announce that it would export condensate without authorization from the government.
    • Related tickers: PSX, KMI, ETP, RGP, CVX
  • Dec. 23, 2014, 6:55 PM
    • Goldman Sachs' David Kostin thinks it’s time for patient investors with at least a 12-month time horizon to begin loading up on energy companies.
    • The Goldman team recommends refiners such as Marathon Petroleum (NYSE:MPC) and Phillips 66 (NYSE:PSX), as well as midstream companies that are less sensitive to oil prices and offer the potential for dividend growth, including EQT Midstream Partners (NYSE:EQM), Kinder Morgan (NYSE:KMI) and Cheniere Energy (NYSEMKT:LNG).
    • With capital spending sure to take a hit and oil prices likely to remain volatile, oil service companies probably aren’t the way to go, but Goldman considers the more defensive names such as Atwood Oceanics (NYSE:ATW), Schlumberger (NYSE:SLB) and Oceaneering (NYSE:OII) as the best of a bad lot.
  • Dec. 22, 2014, 2:40 PM
    • New England building trades leaders are endorsing Kinder Morgan's (KMI -0.9%) proposed Northeast Energy Direct natural gas pipeline, saying the project will create jobs and that more natural gas is needed to reduce the cost of living and doing business in New England.
    • The revised route announced by KMI earlier this month would construct 90% of the pipeline adjacent to or co-located with existing utility corridors in parts of New York, Massachusetts and New Hampshire, and allows the possibility of new natural gas service in some areas that currently lack it.
  • Dec. 10, 2014, 6:56 PM
    • Cheniere Energy (NYSEMKT:LNG) signs 15-year pipeline capacity agreements with Kinder Morgan (NYSE:KMI) and a multi-year gas storage agreement for the proposed Corpus Christi liquefied natural gas export project in south Texas.
    • KMI will provide 550K dekatherms/day of firm natural gas transportation service and 3B cf of natural gas storage capacity to serve the LNG export facility.
    • KMI will expand its existing Texas intrastate pipeline system in south Texas to provide 250K dekatherms/day of firm transportation and 100% of storage services, and expand its TGP Pipeline to provide 300K dekatherms/day of firm transportation; KMI expects to invest ~$187M on the project.
  • Dec. 10, 2014, 2:22 PM
    • Kinder Morgan (KMI -3.1%) founder Richard Kinder plans to turn over day-to-day management to current COO Steven Kean, Kinder's no. 2 man said at today's Wells Fargo industry conference.
    • The board still must approve the transition, and no timeline has been set; founding partner Kinder will continue as executive chairman.
    • Kinder has promised shareholders of the newly combined company a payout of $2/share in 2015, a 16% increase, and Kean said today that KMI can meet that promise even if oil averages $65/bbl next year.
KMI vs. ETF Alternatives
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.