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   Technology StocksKMI- a fallen high dividend yielder - for how long?


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From: E_K_S12/8/2020 8:59:06 AM
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Kinder Morgan sees 3% rise in 2021 dividend per share
Dec. 08, 2020 8:47 AM ET Kinder Morgan, Inc. (KMI) By: Carl Surran, SA News Editor 1 Comment

Kinder Morgan (NYSE: KMI) issues preliminary financial projections for 2021, including $1.08/share in dividends - a 3% Y/Y increase - and $1.2B in distributable cash flow in excess of discretionary capital spending and dividends.

The company says it reduced 2020 expenses and sustaining capex by nearly $190M, and lowered its discretionary capital outlook for 2020 by $680M, or nearly 30%, resulting in a $160M improvement to DCF less discretionary capex compared to the original budget; net debt-to-adjusted EBITDA ratio at year-end 2020 should be ~4.6x.

Kinder expects to generate $2.1B in attributable net income in 2021, $2B more than its 2020 forecast, due primarily to asset and goodwill impairments taken last year, and expects to generate $4.4B in DCF during 2021, 3% below its current 2020 forecast, affected by several factors including lower re-contracting rates on certain natural gas pipeline assets.

The company expects DCF less discretionary capex and dividends of $1.2B in 2021, an improvement of more than $700M vs. the 2020 forecast.

Kinder also says it plans to invest $800M in expansion projects in 2021.

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To: E_K_S who wrote (116)12/8/2020 1:44:56 PM
From: robert b furman
   of 134
 
Hi E_K_S,

It's not the hoped for 20 cents, but all increases in the dividend are graciously received. <smile>

Compared to many, the 5%, and this 3 cents is a whole lot better than a cut.

With normalcy and higher prices with bigger volumes, KMI will be one of the better to offer hefty dividend increases in the near future. IMO

A solid yield based on cost!

Thank for the prompt post!

It will be interesting to see the revenue the big pipelines from the Permian produce in 2021,plus all of the liquefaction trains up and running . Should be good growth!

Bob

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From: E_K_S1/18/2021 8:27:46 AM
   of 134
 
Biden may cancel Keystone XL pipeline permit as soon as his first day in office: source

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To: E_K_S who wrote (119)1/18/2021 12:30:19 PM
From: robert b furman
   of 134
 
Hi E_K_S,

I may well have a bad impression, but I thought there was not a lot of desire to build the pipeline.

Shale will be so much cheaper and plentiful, with export ability from the Gulf of Mexico already in existence and more coming on why build an expensive pipeline for oil coming from Canada.

Remember we have a glut of oil. LOL

Maybe after the Capex destruction we've already endured the price of WTI goes back to 100.00 and it is justifiable, but with a 3 years completion lag?

Not sur eit is a wise investment?

Canada has already bought out KMI's Transmountain pipeline. I say let them do a pipeline to the west coast and build a Pacific Coast terminal.

The alyeska pipeline in Valdez is running at 25%. Seems no real need for the frozen tundra development either.

A lot of these huge infrastructure plans go away with a commodity collapse.

I think that is what we're seeing. Once bit twice shy.

The beauty of inexpensive shale. Prices go up, turm it on, prices go down,turn it off.

The US holds the pricing of world oil.

Not a bad place to be in. Surely should curtail long timeframe capital developments - unless the reserves are huge and can be done cheaply over the long run. ie Guyanna, Suriname, Brazil.

Bob

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To: robert b furman who wrote (120)1/18/2021 12:35:23 PM
From: E_K_S
   of 134
 
I was thinking eventually would/could see NG and/or Liquified Ammonia Gas or even hydrogen. Perhaps wait for the demand from the Green New Deal.

I am looking way forward where these pipelines will be used to transport Hydrogen in the form of ammonia gas and/or NG.

Lots of development in Canada in those oil sands to process hydrogen at the source. It's one of those legacy developments that leap from into next generation fuels.

EKS

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To: E_K_S who wrote (121)1/18/2021 12:50:43 PM
From: robert b furman
   of 134
 
Hi E_K_S,

Man, thought I was a long term investor! <smile>

I guess Obama didn't think that far out.

He only wanted the poll numbers, not hydrogen I guess.

It will be interesting for sure.

Bob

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To: robert b furman who wrote (122)1/18/2021 1:04:16 PM
From: E_K_S
   of 134
 
I stumbled on some research plots out in those Oil Sands where they convert that messy oil directly into hydrogen. Probably the reason why I still hold on to my investment there.

Oil Sands Producer Eyes Hydrogen Exports

Canada has the potential to become a top hydrogen exporter and shake off a reputation of global warming offender. That this vision is beginning to gain traction in the heart of the country’s oil patch goes to show how the world’s energy transition is taking center stage with growing pressure from consumers and investors — even if it’s still unclear how long it will take until cleaner sources will have enough scale to displace crude and other fossil fuels.
Proton is testing its zero-emissions technology on a well in Saskatchewan that could reach output of as much as 20 tons of hydrogen a day this fall, Chief Executive Officer Grant Strem said in an interview. A facility the company aims to build in the next two years could produce 500 tons per day at a cost of about 10 Canadian cents (7.6 cents) a kilogram, compared with $1 to $3 per kilogram for the currently cheapest method, he said.

“As far as I know, it’s the only path that can lead to hydrogen production on a gigajoule basis that’s less expensive than natural gas,” Strem said.

Never say never

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To: E_K_S who wrote (123)1/18/2021 1:22:01 PM
From: robert b furman
   of 134
 
Well anyone who has been looking must acknowledge our world is constantly being upturned by innovative creative destruction.

Good thing to watch for.

Thanks. Probablt should not hold my breathe tho eh? <smile>

Bob

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To: robert b furman who wrote (124)1/20/2021 4:39:43 PM
From: robert b furman
2 Recommendations   of 134
 
KMI beats consensus by 3 cents at 27 cents and beats on revenue with 3.12 revenue with consensus at 3.05.

Cash flow covering dividend comfortably.

Confirms 1.08 2020 dividend expectation.

Lot of big projects completing this 2021 Q1.

Shoould get better with demand for oil and gas growing as noralcy recovers.

I forgotten , what's normal? <smile>

AH stock trading $15.98 to $16.00.

I think KMI will continue to be a solid comeback story and excellent dividend growth stock.

Patiently waiting to get into the black on this one . Had some before the dividend slash and burn.

I'm a years dividend away from being in the black.

Adding up all the dividends received. I am in the black, so well within my longterm comfort zone and it is a very nice high yielder.

Kinder Morgan Announces Results for Fourth Quarter of 2020; Maintains $0.2625 Per Share Dividend

Author of the article:


Business Wire

Publishing date:
Jan 20, 2021 • 27 minutes ago • 32 minute read

Article contentHOUSTON — Kinder Morgan, Inc.’s (NYSE: KMI) board of directors today approved a cash dividend of $0.2625 per share for the fourth quarter ($1.05 annualized), payable on February 16, 2021, to common stockholders of record as of the close of business on February 1, 2021. This dividend represents a 5% increase over the fourth quarter of 2019.

KMI is reporting fourth quarter net income attributable to KMI of $607 million, compared to net income attributable to KMI of $610 million in the fourth quarter of 2019; and distributable cash flow (DCF) of $1,250 million, an 8% decrease from the fourth quarter of 2019.

“Despite the pandemic’s continued drag on the economy and on energy demand, our company weathered the fourth quarter well, producing substantial earnings as expected and robust coverage of this quarter’s dividend,” said KMI Executive Chairman Richard D. Kinder.

“Our assets continue to provide strong cash flow and our corporate philosophy remains sound: fund our capital needs internally, maintain a healthy balance sheet, and return excess cash to our shareholders through dividend increases and/or share repurchases. As noted in our December financial guidance, the board expects to increase the dividend by 3% for 2021, to $1.08 per share (annualized). The company also has the capacity to engage in opportunistic share repurchases up to $450 million,” Kinder concluded.

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To: robert b furman who wrote (125)1/20/2021 4:59:36 PM
From: E_K_S
   of 134
 
Fwiw sold 30% of my position yesterday along w/ small amounts of WMB, CVX to redeploy into Green New Deal stocks/project.

I was way over weight in pipeline stocks and w/ the new Administration felt it prudent to lighten up a bit.

Nice to see KMI covering dividend and if/when Green New Deal looks at NG (especially w/ fuel cells) I expect pipe line usage/growth may be limited.

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One of the positives is that these pipeline companies own all the land rights that these pipes sit on. Can they put up cell towers, solar panel arrays in certain areas, and/or look at other revenue streams that a $10 Trln Green new Deal/Infrastructure program may offer.

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