Kinder Morgan, Inc. (KMI): A Silver Lining

We experienced unanticipated twists and turns over the past number of months with Kinder Morgan, Inc. (KMI). The oil and gas sector’s cyclical downturn was well underway, KMI’s cash flow remained strong, yet the share price fell with others in the sector. The negative sentiment also turned to KMI’s increased debt that was used in part to fund the […]

Buying More Kinder Morgan, Inc. (KMI)

Kinder Morgan, Inc. (KMI) & Brookfield Infrastructure Partners (BIP) just bought [Source] the remaining 53% of Natural Gas Pipeline Company of America LLC (NGPL) for about $242 million equity but both companies also took on NGPL’s $3 billion in debt, about $1.5 billion each. NGPL: NGPL has about 9,200 miles of pipelines, 1 million horsepower […]

Kinder Morgan, Inc. (KMI): Opportunity for the Patient Investor

The KMI investment has hit a rough patch right along with the entire midstream infrastructure sector. The share price decline in KMI is disappointing and causes investors to wonder if we missed something. We did a thesis [Source], analyzed the data and came to the conclusion that KMI has the potential for a good risk […]

A Closer Look at Kinder Morgan (KMI) Part II

This is the second part of a two part follow up on the Kinder Morgan investment thesis [Source] where we estimated Kinder Morgan Inc. (KMI), had the potential for attractive returns in a three to five year time frame. In Part I [Source] we take a closer look at KMI’s distribution and the company’s guidance for […]

A Closer Look at Kinder Morgan (KMI) Part I

We posted the investment thesis in October, 2014 [Source] after we estimated Kinder Morgan Inc. (KMI), had the potential for attractive returns in a three to five year time frame. In Part I we take a closer look at KMI’s distribution and the company’s guidance for distribution growth. In Part II, we’ll do the same […]

Kinder Morgan Inc. (KMI), Reports Good 2Q15 Results

Last week Kinder Morgan Inc. (KMI), reported second quarter 2015 (2Q15) results. Overall it was a decent report and our investment thesis remains on track. You will recall our investment thesis’ total return centers on management’s projected dividend growth and the resultant share price appreciation resulting from the consolidation of the Kinder Morgan companies last […]

Kinder Morgan, Inc. (KMI) Reports Solid 1Q15 Results

Kinder Morgan Inc., first quarter 2015 report (1Q15) is solid [Source]. While KMI is up about 30% since our initial purchase in October 2014, at the current share price level of about $43/share it still offers a strong potential return with a healthy margin of safety. We believe the company is on track to achieve $60-70 […]

Kinder Morgan, Inc. (KMI) Reports Solid 4Q14 Results

We bought Kinder Morgan Inc., in October, 2014 after they announced the consolidation merger bringing all of its publicly traded segments into one company. We expected good things from KMI and the 29% gain in 2014 was a nice start for the 2½ months we owned it. We are expecting more good things over the years and […]

Kinder Morgan Inc. (KMI) Investment Thesis

The oil and gas industry relies on midstream companies with the infrastructure to transport large volumes of products. Houston based Kinder Morgan Inc. and its subsidiaries make up the largest midstream infrastructure company in North America with approximate 80,000 miles of pipelines and 180 terminals. The pipelines transport crude oil, natural gas, refined petroleum products, […]