A leading master limited partnership
Kinder Morgan Energy Partners L.P.
) has embarked on a new business - Kinder Morgan Resources LLC -
that will own mineral reserve interests and other assets in North
America. The business will involve owning, leasing and acquiring
natural resource reserves.
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The new venture will form part of its Terminals business segment
and entail leasing of properties to operators in exchange for
royalty payments without actually owning the coal mine or other
natural resources. The lessees of the properties and not Kinder
Morgan will bear any commodity price risk related to the
Kinder Morgan Resources LLC will be headed by, Richard M.
Whiting, who has been appointed by the partnership as president.
With over 35 years of experience in the coal industry, Whiting is
expected to guide the new entity profitably.
Kinder Morgan's other new ventures will offer enhanced services
to its coal industry customers as well as other selected industry
participants. The new business will also assist the partnership
to fortify its presence among mineral producers and develop its
Kinder Morgan Resources will function under the Kinder Morgan
Terminals, which has over 180 terminals that store petroleum
products and chemicals, as well as manage materials including
coal, petroleum coke and steel products. Currently, the
partnership has more than $450 million in ongoing coal terminals
expansion projects and it is trailing additional opportunities.
According to market sources, in 2012, the partnership's terminals
business managed around 38 million tons of coal, as well as 11.6
tons of petroleum coke and 4.4 tons of soda ash, among other
Kinder Morgan carries a Zacks Rank #3 (Hold). However, Zacks
Ranked #1 (Strong Buy) stocks -
Newpark Resources Inc.
Gulfmark Offshore, Inc.
) - are expected to perform impressively over the short term.