Kinder Morgan, Inc. is one of the largest midstream energy
companies in North America. During the first quarter, the company
improved its topline from the year ago period due to higher volumes
in most of its businesses. Going forward, we believe Kinder Morgan
will be able to seize attractive investment opportunities in the
near term, particularly in the Eagle Ford and Haynesville shale
plays. To shore up growth, the company is moving forward with its
planned $16.4 billion investment in expansion and joint venture
investments at Kinder Morgan Energy Partners and El Paso. The
steady rise in dividends is also a positive. However we feel all
the above positives have already been factored in the current share
price. As such we are maintaining our Neutral recommendation on
Texas-based Kinder Morgan, Inc., (KMI) is one of the largest
midstream energy companies in North America, operating
approximately 80,000 miles of pipelines transmitting natural gas,
refined petroleum products, crude oil, carbon dioxide and
additional products. It has more than 180 terminals that store
petroleum products and chemicals, as well as ethanol, coal,
petroleum coke and steel.
KMI owns the general partner (GP) interest and incentive
distribution rights (IDRs) of Kinder Morgan Energy Partners, L.P.
(KMP) and El Paso Pipeline Partners, L.P. (EPB). The company also
owns limited partner units of KMP, Kinder Morgan Management, LLC
(KMR) and EPB. KMP is considered to be one of the leading publicly
traded pipeline limited partnerships in America.
The company's reportable business segments comprise KMP's first
five segments as well as NGPL PipeCo LLC. These include:
KMP - Products Pipelines, Natural Gas Pipelines, CO2, Terminals,
Kinder Morgan Canada
NGPL PipeCo LLC - KMI holds 20% equity interest in NGPL PipeCo
LLC that is considered to be a major interstate natural gas
pipeline and storage system.
On May 24, 2012, Kinder Morgan, Inc. completed the acquisition
of El Paso Corporation. The agreement - announced on October 16,
2011 - created the largest natural gas pipeline system in North
America. The purchase price, including El Paso's $17 billion
outstanding debt, was $38 billion. Kinder Morgan shareholders own
approximately 68% of the combined company and El Paso shareholders
hold the balance 32%.
Kinder Morgan Inc. (KMI): Read the Full Research
KINDER MORGAN (KMI): Free Stock Analysis Report
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