Seeking Alpha

greenergrass

greenergrass
Send Message
View greenergrass' Comments BY TICKER:
  • Kinder Morgan: Why Barron's Is Wrong Regarding The CO2 Segment [View article]
    Founder, I slipped three decimal points, the written off gas reserves are worth only $5.5 million, not $5.5 billion. The write-down is immaterial. I agree with your disfavor for the CO2 segment. Tertiary recovery with CO2 is a high cost operation.
    Mar 27, 2014. 10:02 AM | 1 Like Like |Link to Comment
  • Kinder Morgan Energy Partners: A Good Time To Buy? [View article]
    Lost jobs is an insufficient excuse for wasting natural resources and polluting the earth. If North Dakota insisted on monetizing their natural gas reserves, there would be a gain in jobs - long term.
    Mar 12, 2014. 02:45 PM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: A Good Time To Buy? [View article]
    The flaring would stop if the state insisted on it.
    Mar 11, 2014. 04:32 PM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: A Good Time To Buy? [View article]
    The oil companies would get the flares out lots faster if the state mandated stout flare penalties. Better yet, no oil production until you have a gas usage solution.
    Mar 11, 2014. 03:45 PM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: A Good Time To Buy? [View article]
    I hope sjfaris is reading this. He contacted IR for an explanation but did not hear back from them as of a couple of days ago.

    The gas flaring in North Dakota as a result of the Bakken oil boom is an atrocity. Back in the 80s when Wyoming dictated there would be no more flaring of gas, we rapidly found ways to monetize the gas. ND needs to do the same thing. The flaring problem might be commercial, i.e. the gas won't pay for treating and transportation. However I have heard that gas infrastructure is being installed, but that takes time.

    One thing I have not understood are low gas prices. On a BTU equivalent basis, with $100/bbl oil, gas should sell at $17.00. Can someone explain this?
    Mar 11, 2014. 11:31 AM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: A Good Time To Buy? [View article]
    KMP wrote off 5.5 billion cubic feet in proved gas reserves with a lame explanation about high operating costs in a negligible field. At $1.00 per MCF, the drop in stock price should be even higher. Before buying KMP, a better explanation for this write-off might be prudent.
    Mar 11, 2014. 11:02 AM | 1 Like Like |Link to Comment
  • Kinder Morgan: Why Barron's Is Wrong Regarding The CO2 Segment [View article]
    Steve,
    I dug further into the Katz Unit and ran across this early 2012 presentation on the CO2 segment:
    http://bit.ly/1cGxgWW

    My takeaway is that the Katz Unit provides a small contribution to the overall operation. I cannot explain how such a small contributor can have the large impact on proved reserves which makes me wonder if the gas reserves weren’t incorrect bookings from past years, and finally corrected for 2013. The weak opex explanation could be one of those statements that engineers hope won’t be questioned because of the immateriality of the unit. Finally since there was no mention of gas in the Katz in this report, I am wondering if someone didn’t slip a decimal point on gas reserves back in 2010 when reserves went from 0.7 to 3.1 BCF...Mike
    Mar 9, 2014. 11:16 AM | 1 Like Like |Link to Comment
  • Kinder Morgan: Why Barron's Is Wrong Regarding The CO2 Segment [View article]
    Steve, Thanks a lot for contacting IR and for your further research. I am sure you will let us know if you receive a response from them. I may defer purchasing KMR until they elaborate more on this write-down. After reading page 180 I am more confused - the Katz Unit boosted oil and NGL reserves and decreased gas reserves. Even though they claim the Katz makes up only 6% of proved developed reserves, the write-down is a 65% reduction on an MBOE basis for proved developed and undeveloped reserves...Mike
    Mar 8, 2014. 08:19 PM | 1 Like Like |Link to Comment
  • Kinder Morgan Energy Partners LP Doesn't Skimp On Maintaining Its Pipelines [View article]
    Re bullet 3: "•Comparing SEP and KMP's maintenance capex is comparing apples to oranges. when you factor in maintenance capex and operating expenses, KMP spends more per pipeline mile."

    This statement can be construed as a negative for Kinder Morgan. Maintenance CapEx prevents leaks. OpEx repairs leaks and cleans them up.

    Well said toomuchgas.
    Mar 5, 2014. 04:42 PM | 1 Like Like |Link to Comment
  • Opportunity Knocks At Kinder Morgan [View article]
    Smurf, I agree with the first part. K-1s are the last documents to arrive before I can submit my return, but I haven't had any complaints or higher charges from my accountant. Also, what about those folks that are saying that TurboTax handles K-1s with a problem?
    Mar 5, 2014. 03:44 PM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners LP Doesn't Skimp On Maintaining Its Pipelines [View article]
    Well done Elliott,
    Perhaps the CAPEX per mile of pipeline metric would be more useful if other operators were included in the comparison. This exercise may identify an outlier or shed more light on the discrepancy.

    Midglon's real world observation of Kinder Morgan's operational integrity is highly regarded and appreciated.

    Other operational insights are encouraged.
    Mar 5, 2014. 03:31 PM | 1 Like Like |Link to Comment
  • Kinder Morgan: Why Barron's Is Wrong Regarding The CO2 Segment [View article]
    Thanks Steve, I look forward to reading your findings...Mike
    Mar 5, 2014. 01:20 AM | 1 Like Like |Link to Comment
  • Kinder Morgan: Why Barron's Is Wrong Regarding The CO2 Segment [View article]
    Kinder Morgan's 5.5 BCF write down on their proved natural gas reserves (page 181 of their 10-k for 2013) is worth over $5 billion at $1.00/MCF. A $5 billion hit in market cap would be an 18% reduction in stock price. Perhaps this is also a contributor to the 7 1/2% reduction since the 10-k was published. Before I invest in KMP (and I really want to pull the trigger at these prices), I would like to have a better understanding for this reserve reduction. The explanation provided in the report of "Predominantly due to higher operating costs at the Katz Strawn Unit" leave me without a large degree of confidence in the future of their natural gas operations.
    Mar 3, 2014. 12:56 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan: Why Barron's Is Wrong Regarding The CO2 Segment [View article]
    Thanks Albert,

    Perhaps someone can clear up another concern I have on Kinder Morgan’s oil and gas segment. Page 181 of their 10-K for 2013 reports a 73% reduction in gas reserves to 2.07 BCF from 7.539 BCF. Their explanation “Predominantly due to higher operating costs at the Katz Strawn Unit” leaves me with concerns about operator competency and the future of the field. Can anyone tell me what the impact might be on KMP’s value?

    On the positive side their oil and natural gas liquids reserves are up 39% over 2012 figures.
    Mar 3, 2014. 12:55 PM | Likes Like |Link to Comment
  • Opportunity Knocks At Kinder Morgan [View article]
    Schlossberg, I don't own KMP (yet), but I do get a K-1 from OKS. I passed along the downloaded document to my accountant last year and they had no further questions. The comments from gawilley above are a cause for concern.
    Mar 2, 2014. 09:19 PM | Likes Like |Link to Comment
More on KMP by greenergrass
COMMENTS STATS
23 Comments
15 Likes