By the time they get both permian pipelines built (although they are shared ownerships) Plus elba export of LNG, revenue will be substantially improved. It appears the LNG export will grow to be huge globally as many projects have received FID's.
Many in the permian do not get the full price for their oil as they must use rail.
For KMI to include a connection to the most efficient method of transporting, a company needing cash flow will pay handsomely to get hooked in to the pipeline.
I do not expect a return to a $2.00 dividend, but I think Kinder has to shoot for that, to redeem himself in the eyes of many stockholders who hung with him. Not only to redeem himself,but he has been buying more stock himself.
I have a mixed feeling about return of capital. I'd like to see the dividend get covered before the dividend gets bumped beyond $1.25.
My average is $19.04 so at 6.6% - I'm a happy camper.
If they keep rising to the 2.00 divind of the past, I'm sitting on a 10% plus yield with a lowering cost basis.
KMI is going to be around for my life and growing without a doubt in my mind.
It's a buy and hold in my retirement plan.
I park it next to my T and XOM and sleep well at night.
I too have a construction project coming.
If I do not have the cash flow from dividends to cover the building , I'll get a construction loan.
Rates are too low for me to sell a portfolio of dividend aristocrats that I have worked hard to get at right prices by selling long term puts and having them get assigned to me.
There are plenty of bankers out there looking to make cheap loans when they know they will get paid back. <smile>