PR Newswire (Tue, 9:30AM)
PR Newswire (Mon, 9:30AM)
at CNBC.com (Aug 1, 2011)
at CNBC.com (May 20, 2011)
at MarketWatch.com (Feb 11, 2011)
at MarketWatch.com (Feb 4, 2011)
at MarketWatch.com (Oct 4, 2010)
Kinder Morgan Management, LLC through Kinder Morgan Energy Partners, L.P operates as a pipeline transportation & energy storage company in North America. Its pipelines transport natural gas, refined petroleum products, carbon dioxide & other products.
Thursday, Apr 36:56 PM
Thursday, Apr 36:56 PM| 17 Comments
- Kinder Morgan Partners (KMP) has the motivation to at least consider some kind of restructuring and/or elimination of incentive distribution rights, and such a move is doable but it wouldn't be easy, Credit Suisse analyst John Edwards says.
- Chairman Rich Kinder would be the linchpin to a transaction thanks to the ~23% stake he owns in the company, the analyst says as he envisions three scenarios that potentially could play out, including using KMP units and EPB units to eliminate the IDR burden from both entities while allowing KMI to continue as an entity, a move that would be analogous to Linn Energy/LinnCo's structure.
- Edwards writes that a restructuring would remove at least one major distraction to investors and allow KMP to trade back toward his target price of $90.
Wednesday, Mar 269:39 AM
Wednesday, Mar 269:39 AM| 6 Comments
- Kinder Morgan Partners (KMP +0.3%) says it plans to invest $1B to expand its carbon dioxide network with a new 213-mile pipeline.
- The Lobos Pipeline will transport CO2 from the company’s St. Johns source field in Apache County, Ariz., to its Cortez Pipeline in Torrance County, N.M., and will have an initial capacity of 300M cf/day.
- KMP says it will spend ~$300N on the pipeline and ~$700M to drill wells and build field gathering, treatment and compression facilities at the St. Johns field.
- The project also will support enhanced oil recovery projects owned by Kinder Morgan and other operators in the Permian Basin of West Texas and eastern New Mexico.
Friday, Mar 148:48 AM
Friday, Mar 148:48 AM| 28 Comments
- Kinder Morgan reconfirms its 2014 financial dividend and distribution guidance for Kinder Morgan (KMI), Kinder Morgan Partners (KMP), Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB).
- As previously announced, KMI expects to declare dividends of $1.72/share for 2014, up 8% Y/Y, driven by continued strong performance at KMP and contributions from EPB.
- KMP expects to declare cash distributions of $5.58/unit for 2014, up 5% Y/Y, mostly due to the positive impact of its tanker acquisition, Tennessee Gas Pipeline's incremental north to south firm transportation contracts, and additional long-term contracts on its El Paso Natural Gas pipeline system.
- KMR also expects to declare distributions of $5.58/share for 2014, to be paid in the form of additional KMR shares.
- CEO Richard Kinder also says the company has identified $14.8B in expansion and joint venture investments that should add to earnings.
Monday, Feb 243:24 PM
Monday, Feb 243:24 PM| 24 Comments
- Rcihard Kinder discloses buying nearly 200K shares of Kinder Morgan (KMI -2.4%) worth ~$6.4M, just four days after disclosure of a 100K share purchase worth ~$3.3M.
- The purchases may add to the perception, discussed in this weekend's negative Barron's piece, of an enormous transfer of wealth from MLP Kinder Morgan Partners (KMP -5.3%) to general partner KMI and that “the smart money has gravitated toward the GP.”
- Rich Kinder owns an $8.1B stake in KMI vs. just $26M in KMP.
- Also: KMR -4.6%, EPB -0.6%.
Monday, Feb 248:21 AM
Monday, Feb 248:21 AM| 24 Comments
- Barron's joined the parade of bears on Kinder Morgan Partners (KMP) and general partner Kinder Morgan Inc. (KMI) over the weekend, sending KMP -2%, KMI -1.2% and KMR -0.4% premarket.
- The article says KMP's calculation of distributable cash flow uses aggressive assumptions about how much it takes to sustain some of the company's businesses, particularly its oil production division, which generates almost 20% of annual cash flow; more conservative assumptions would lower DCF and probably the distribution and the price of the MLP units.
- KMI takes 43% of total distributions from KMP and 50% of distributions generated on new capital spending, which places the MLP at a disadvantage to some rivals and limits growth prospects, the article maintains.
- Deutsche Bank says the Barron's report contains "old inaccuracies," and that KMP's recent offering is a common feature of MLPs to fund growth capex and is not specific to the Kinder companies.
Friday, Feb 214:30 PM
Friday, Feb 214:30 PM| 20 Comments
- Kinder Morgan (KMI) ended with a small decline, giving back morning gains that followed CEO Richard Kinder disclosing his purchase of 100K shares of KMI's stock yesterday at an average price of $32.97 each.
- The $3.3M purchase increased Kinder's direct stake in the company to nearly 232M million shares, or ~22.3% of its common stock; he also controls another 11.1M shares held in a limited partnership and by his spouse.
- KMI closed -0.6% after gaining as much as 1% earlier.
Wednesday, Dec 42013, 10:16 AM
Wednesday, Dec 42013, 10:16 AM| 19 Comments
- El Paso Pipeline Partners (EPB -9.5%) sinks following disappointing dividend guidance for nearly flat distributions over the next five quarters even with a lift from dropdowns.
- At least two firms are issuing downgrades: Morgan Stanley cuts units to Underweight from Equal Weight, and Tudor Pickering lowers its rating to Trim from Hold.
- Other Kinder Morgan companies are lower too: KMI -5%, KMP -1.9%, KMR -1.7%.
Tuesday, Dec 32013, 4:43 PM
Tuesday, Dec 32013, 4:43 PM| 23 Comments
- Chairman/CEO Richard Kinder foresees strong growth in 2014 across the Kinder Morgan companies, and says ~$14.4B in expansion and joint venture investments have been identified that will contribute to growth.
- Kinder Morgan (KMI) expects to declare dividends of $1.72/share for 2014, a ~10% Y/Y increase over its 2013 budget target of $1.57 and ~8% over the $1.60 of dividends it expects to declare for 2013.
- Kinder Morgan Partners (KMP) expects to declare cash distributions of $5.58/unit for 2014, a ~6% increase over its 2013 budget target of $5.28 and ~5% above its current expectation of $5.33; Kinder Morgan Management (KMR) also expects to declare distributions of $5.58/share for 2014.
- El Paso Pipeline (EPB) expects to declare cash distributions of $2.60/unit for 2014, a ~2% increase over expected 2013 distribution of $2.55; EPB's 2014 budget includes the expected purchase (dropdown) from KMI of 50% of Ruby Pipeline, 50% of Gulf LNG and 47.5% of Young Gas Storage.
Thursday, Sep 262013, 2:16 PM
Thursday, Sep 262013, 2:16 PM| 28 Comments
- Hedgeye's follow-up report on Kinder Morgan (KMI -0.1%) isn't moving shares this time around, unlike the firestorm generated three weeks ago when young Kevin Kaiser called the Kinder companies a "house of cards."
- In today’s report rebutting Richard Kinder's rebuttal, Kaiser corrects some of the math in his first report but maintains the pipeline operator is "defending the indefensible” and can’t justify its maintenance capital spending policies.
- The policy creates "an enormous wealth transfer" from Kinder Morgan Partners (KMP +0.3%) to KMI "that should not be taking place," Kaiser says, a "materially misleading" policy that results in KMI "taking hundreds of millions of dollars from KMP every year that it should not."
- Also, KMR +0.2%, EPD +1.3%.
Thursday, Sep 262013, 10:51 AM
Thursday, Sep 262013, 10:51 AM| 24 Comments
- Kinder Morgan (KMI +0.4%) could find itself on the defensive today when Hedgeye releases his second note in recent weeks critical of the company’s maintenance practices.
- Richard Kinder says his companies don’t cut corners on safety and noted that, like many other MLPs, KMI/KMP/KMR records much of its maintenance work as expenses instead of capital costs, which don’t impact cash distributions.
- Hedgeye's Kevin Kaiser says he stands by his original analysis, and will follow it up in today’s report; he believes Kinder eventually will need to issue debt or equity to pay for broken-down systems.
- “MLPs in general are massively overvalued, and we’re going to have a correction," Kaiser believes.
Thursday, Sep 192013, 7:55 AM
Thursday, Sep 192013, 7:55 AM| 8 Comments
- Questions around Kinder Morgan's (KMI) maintenance capex practices and the capex treatment of acquired assets have not been fully resolved after yesterday's conference call with CEO Richard Kinder, Jefferies says.
- As a result, the firm does not expect the Kinder family of companies to outperform peers; it maintains its Hold rating and $38 price target on KMI, preferring Williams Cos. (WMB) and Targa Resources (TRGP).
- In the premarket, KMI +0.4%, KMP +0.1%, KMR -0.6%, EPB flat.
Wednesday, Sep 182013, 7:35 PM
Wednesday, Sep 182013, 7:35 PM| 26 Comments
- Kinder Morgan (KMI) was today's top gainer among energy stocks after billionaire CEO Richard Kinder held a conference call angrily defending his companies against criticism from 26-year-old analyst Kevin Kaiser, providing details of KMI's reported capital expenditures. (audio)
- "What we did in reducing costs is not related to spending on the integrity of our pipelines," Kinder said to claims the company has cut maintenance work to boost cash distributed to investors in its partnerships.
- He noted that a $222M variance between El Paso's (EPB) 2011 capex of $354M and its projected $132M in 2013 capex could be explained by the expensing of anomaly repairs and capex synergy among IT systems and mechanical equipment.
- Kaiser isn't backing down: "I'm early, not wrong."
- Today: KMI +4.4%, KMP +3.2%, KMR +2.9%, EPB +2.4%.
Wednesday, Sep 182013, 9:01 AM|Wednesday, Sep 182013, 9:01 AM| 49 Comments
Wednesday, Sep 112013, 5:45 PM
Wednesday, Sep 112013, 5:45 PM| 91 Comments
- Hedgeye's Kevin Kaiser explains his "house of cards" view on the Kinder Morgan companies in an interview with Charlie Gasparino (video): "To me, 'house of cards' means something that has an unstable foundation, and when you need to raise more and more capital to continue to pay out higher and higher distributions... that’s a very unstable foundation."
- Kaiser doesn't see anything illegal but thinks "there are some very misleading statements with some of the non-GAAP financials."
- "The entire MLP sector is sort of a regulatory nightmare," he says, but the issues around Kinder Morgan "are more egregious than some of the others."
- In today's trading: KMI -2.8%, KMP -1%, KMR -2%, EPB -0.9%.
Tuesday, Sep 102013, 7:25 PM
Tuesday, Sep 102013, 7:25 PM| 45 Comments
- Hedgeye analyst Kevin Kaiser unleashed a firestorm last week when he dubbed the Kinder Morgan (KMI) companies a "house of cards," but today's release of the full 45-page report produced little heat.
- The report claims Kinder's overriding strategy is to "starve the assets of routine maintenance expenses and capex in order to maximize [distributable cash flow]," and has cut nearly in half the amount of maintenance capital it spends on the pipeline assets it acquired in its 2012 purchase of El Paso (EPB).
- By cutting or deferring the maintenance spending, general partner KMI is getting more payments than it deserves, Hedgeye alleges, essentially pointing to CEO/chairman Richard Kinder, who bought $18M in KMI stock as it slumped recently.
- "Our business units perform a bottom up review of maintenance capital needs and operating expenses, with the objective being to increasingly reduce risk and improve safety," the company responds, without addressing the details of Hedgeye's report.
- In today's trading: KMI +1.9%, KMP +1.2%, KMR +1.4%, EPB +1.6%.
Monday, Sep 92013, 11:44 AM
Monday, Sep 92013, 11:44 AM| 47 Comments
- Kinder Morgan (KMI +2.6%) CEO Richard Kinder today bought 500K KMI shares at $35.47-$36, worth ~$17.9M, an SEC filing reveals.
- Last week, Hedgeye asserted KMI and its affiliated companies were headed for a fall, apparently over how the Kinder companies account for maintenance and capex spending, commodity hedging and acquisition strategies.
- The CEO owns more than $8B worth of various Kinder entities; would anyone really put this much of their savings into a fraud?
- Also: KMP +0.2%, KMR -0.4%, EPB -0.4%.
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