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Kinder Morgan Suffers Mounting Oil Losses

The $50 price mentioned in the article was a price set by hedges established several years ago. The new hedges established this year are fixed at a much higher price and the new prices will flow to the bottom line. The idea is to hedge oil prices so that the core business, i.e., the pipeline business, is not jerked around by volatile changes in the price of oil but instead mainly acts as a toll-road for the movement of oil and gas around the country.