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7iron10

7iron10
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  • Higher Maintenance Costs Could Hurt Pipeline Dividend Growth [View article]
    "and while it cannot be conclusively stated, the mismatch could be the primary reason why pipelines have been failing."

    Do you have any evidence to insinuate pipelines are failing more so than usual?

    Pipelines are the safest form of travel for our energy needs. Pipelines will fail - accidents happen. But to exaggerate that we're in some kind of epidemic if failing infrastructure...if you have an axe to grind with midstream assets it's about time you come out and say it.
    Jul 31, 2015. 07:23 AM | 4 Likes Like |Link to Comment
  • Richard Kinder buys 100K KMI shares, stock bounces higher [View news story]
    Going 'down the drain'? Please. Will it go lower? Likely....as will the entire midstream industry as well.

    The sky isn't falling - oil is just going lower, is all.
    Jul 24, 2015. 12:28 PM | 13 Likes Like |Link to Comment
  • Kinder Morgan - Buy It After The Recent Crash [View article]
    They're not going to raise them overnight. Moreover they're not going to raise then drastically overnight.
    Jul 23, 2015. 08:39 PM | 7 Likes Like |Link to Comment
  • Kinder Morgan - The Time To Buy Is Now [View article]
    A great call? The entire industry is in free fall....
    Jul 22, 2015. 09:36 PM | 3 Likes Like |Link to Comment
  • Glut of gas heading south to narrow region's price premium, analysts say [View news story]
    The entire midstream space is in massive decline, not just KMI.
    Jul 22, 2015. 06:11 PM | 2 Likes Like |Link to Comment
  • The Last MLP Safe Haven Is Now At Risk [View article]
    I only wish I had bought some puts after the short-lived 'recovery' after energy-related stocks initially tanked - now I'm just watching my MLP portfolio drop like a rock with nothing to show, lol...
    Jul 22, 2015. 10:08 AM | 3 Likes Like |Link to Comment
  • Apple beats estimates, guides light; shares fall [View news story]
    Apple*
    Jul 22, 2015. 05:21 AM | Likes Like |Link to Comment
  • Apple beats estimates, guides light; shares fall [View news story]
    30 years, huh? I'm genuinely curious to see if Apply will live to see 30 more years, let only any tech/gadget company...
    Jul 22, 2015. 04:56 AM | Likes Like |Link to Comment
  • Kinder Morgan Continues Down Unsustainable Path [View article]
    While I agree with you:

    You say KMI is issuing shares to pay dividends. I say it issues them to fund CapEx. Tomato Tomato? All I'm trying to say is, the --CASH-- is there for the dividend. Clearly it's not there for both, but it is there for one. And as management has clearly shown dividend is high (if not highest) priority, it is therefore safe.

    It's unfair, if not misleading, to judge a midstream company based on earnings. Depreciation for their bread-and-butter pipelines is not a cash charge. Additionally, with MaintCapEx the lives of said entities can be extended well past what depreciation allows for. KMI brought in 300mil in earnings this last quarter. Cash flow shows a different story.

    Again, I think this comes down to a fundamental view of how this company should be run. You seem to have a problem with it. In this current environment, I do not.
    Jul 16, 2015. 11:06 PM | 1 Like Like |Link to Comment
  • Kinder Morgan Continues Down Unsustainable Path [View article]
    Well, no one likes to see their ownership stake diminished. Equally as unappetizing, no on likes to see the ability to pay dividends face more burdens than it has to. However, at over 2 billion shares outstanding....what's another 20 million?

    I'd also like to add, as is (one might say) tradition in the midstream space, CapEx has been historically funded by a mixture of debt and equity - I ask again, what is changing?

    *Edit: "to pay the dividend". The dividend is fine. A look at cash flows proves this. Debt is fine - its interest expense is paid over and then some. This leaves CapEx as the unfunded expense. At current interest rates, it only makes sense to fund CapEx through debt. Interest expense to added EBITDA is miniscule in this fashion.

    If the debt is worrisome for you, don't invest. However, I don't see where the overtly hostile criticism is coming from? KMI/midstream entities are not a scheme - it's all right out there in the open to see.
    Jul 16, 2015. 10:37 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan Continues Down Unsustainable Path [View article]
    I have (and acknowledged this in another comment). Income uses non-cash charges. Those pipelines do not need to be replaced today, nor tomorrow for that reason. And as is fashion in the midstream space (and KMI in particular), they'd rather pay for them with debt, which has been addressed.

    Until interest expense becomes a burden at the expense of growth, I am not seeing the problem.
    Jul 16, 2015. 10:16 PM | 4 Likes Like |Link to Comment
  • Kinder Morgan Continues Down Unsustainable Path [View article]
    Again, are you sincerely asking how 'cash' was paid to stockholders, or...?

    "DCF was $20 mil in excess of dividends declared."
    Jul 16, 2015. 10:09 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan Continues Down Unsustainable Path [View article]
    rlp2451,

    Are you sincerely asking why revenues are down? Listening to the conference call would have clearly explained why revenues are down. Simple knowledge of KMI and its business segments would make it obvious: KMI has commodity exposure, and in a weak market such as this.....1+1=_.....
    Jul 16, 2015. 09:50 PM | 4 Likes Like |Link to Comment
  • Kinder Morgan Continues Down Unsustainable Path [View article]
    Yes, but his case lacks credibility.

    This is yet another in a series of articles highly critical of KMI. In his articles have been a number of flaws and concessions that should be mentioned when evaluating such a complex vehicle such as KMI. Moreover, he does not respond to criticism of his work.

    KMI is post merger in a capital-intensive industry; debt is going to be high. He fixates on debt/EBITDA without allowing any reasonable amount of time for new projects to be brought online and lower said ratio. He fixates on FCF deficits when management has directly stated CAPEX will not be funded organically. He has in his previous articles compared pre-merger metrics to post-merger metrics with the hope of strengthening is arguments. He has also in the past incorrectly calculated DCF (distributable, as he likes to make distinctions...) and dividends paid.

    Other members have called him out on his work - he does not respond. Take his criticism for what it's worth....

    That being said, doing one's own homework on KMI, understanding the business and the risks associated with it in this and near-approaching environments is advantageous.

    That being said, I too own KMI. It's a smaller holding in my energy portfolio. I prefer some safer, more conservatively run entities, but I have room for KMI and the like.
    Jul 16, 2015. 09:41 PM | 5 Likes Like |Link to Comment
  • Kinder Morgan's (KMI) CEO Steve Kean on Q2 2015 Results - Earnings Call Transcript [View article]
    Where are you getting this?
    Jul 16, 2015. 02:27 AM | 11 Likes Like |Link to Comment
COMMENTS STATS
132 Comments
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