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


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To: E_K_S who wrote (78)12/5/2019 10:46:20 AM
From: robert b furman
   of 145
 
Hi E_K_S,

I bought 900 KMI at $19.67 on 11/27 (three days early).

When price hit the lower Keltner I sold 10 Dec 19. puts hoping to get them assigned and work my cost down a bit.

That juicy $1.25 will begin paying in late April.

I'm happy to wait 4 months to begin receiving 6.35% dividend yield for many years to follow. In between I'm getting 5.08%.

I'll continue to sell 19.00's less than 30 days out as a revenue stream that will help me pay for any stock that may be assigned.

Tempted to just buy more - hard to find a solid 6% plus!!

Can't get that done with XOM or CVX.

Bob

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To: robert b furman who wrote (79)12/5/2019 10:55:54 AM
From: E_K_S
   of 145
 
On my sale I gave up the dividend so need to factor that into my next Buy. I also have WMB on my Buy list. KMI position is larger so am motivated to add to the WMB. The KMI dividend increase has me put KMI ahead of the list.

I still think BOTH companies will do just fine w/ all the Oil/NG we are now producing. I believe the latest number are over 12.6mln barrels a day (2019) vs 3.8mln in 2005

Going to need a lot more pipes to move that oil IMO.

EKS

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To: E_K_S who wrote (80)12/5/2019 2:52:27 PM
From: robert b furman
   of 145
 
Hi E_K_S,

A lot of pipes are getting connected and will be this year - mostly in Permian to Houston/Corpus and export - that's a lot.

Exporting will grow pipe usage (lowest rate to safely move oil to ship channel for petrochemicals) and export.

Good steady growing revenue. Infrastructure should accelerate all growth.

I'm too much in KMI, but they have done the dividend pledge they committed to 3 years ago.

I don't argue with a good yield. Especially if free cash flow is strong while company reduces debt.

I've always liked that Kinder had a huge position and is buying more.

Electrical generation in Houston is almost all gas. Pollution years ago required it.

Exporting out of texas for crude, liquids, and gas must be huge and growing.

Steady slowing growth and a good dividend yield with stability.

I've owned KMI before they cut the dividend.

I've averaged down and love the dividend income growth - which will slow down after the $1.25 bump in 2020

Sure took a hard bounce off the lower Keltner:

screencast.com

Bob

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From: E_K_S1/9/2020 9:53:34 AM
   of 145
 
Kinder Morgan, Inc. (NYSE:KMI) today announced it has sold all of the approximately 25 million shares of Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) (Pembina) stock it received in connection with Pembina's acquisition of the outstanding common equity of Kinder Morgan Canada Limited. The sale of these shares is consistent with KMI's previously announced intention to convert the shares into cash in an opportunistic and non-disruptive manner, and the after-tax proceeds of $764 million are consistent with KMI's 2020 budget. As previously disclosed, KMI intends to use the proceeds to pay down debt - creating balance sheet flexibility in 2020 (relative to KMI's long-term leverage target of 4.5 times Net Debt-to-Adjusted EBITDA).

-------------------------------------------------------

PBA +5% on that news

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To: E_K_S who wrote (82)1/9/2020 2:58:21 PM
From: candsrr
   of 145
 
Nice action so far today - new 52 week high. Not too long ago I was looking at 21.50 as a spot to lighten-up a bit. However, after looking at a longer term chart, I'm thinking the 23 area form the fall of 2016 might be a better target.

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From: E_K_S3/2/2020 12:18:03 PM
   of 145
 
Kinder Morgan, Energy Transfer rally after insider buys
Mar. 2, 2020 10:58 AM ET|About: Kinder Morgan, Inc. (KMI)|By: Carl Surran, SA News Editor

Kinder Morgan ( KMI +2.3%) and Energy Transfer ( ET +3.8%) enjoy heady gains as prominent insiders made big purchases recently as shares were weakening, Barron's reports.

Kinder Morgan Executive Chairman Richard Kinder paid $6.2M on Feb. 26 for 300K KMI shares at an average price of $20.72/share, raising his holdings to 243.4M shares in a personal account and another 11.8M shares through a limited partnership.

Kinder paid 2.1% less than the $21.17 year-end 2019 price of Kinder Morgan stock; KMI dropped 9.4% YTD through Friday's close.

Energy Transfer Chairman and CEO Kelcy Warren paid $45.2M on Feb. 19 for 3.6M publicly traded units at an average price of $12.53, lifting his overall ownership to 255.6M units.

Warren paid 2.3% below Energy Transfer's $12.83 year-end closing price; ET units have since shed 13.6% YTD.

Kinder owns a stake of more than 11% in Kinder Morgan, while Warren owns 9.5% of Energy Transfer, according to S&P Capital IQ.

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From: E_K_S4/20/2020 3:08:43 PM
1 Recommendation   of 145
 
In for a few more KMI @ $14.51/share. Would like to add more at these prices but going to try to average in. Completed new buys for WMB at/near these prices so KMI on my Buy list now.

Dividend yield at 6.68%.

EKS

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From: E_K_S4/22/2020 4:45:05 PM
   of 145
 
Kinder Morgan posts narrow Q1 miss, raises dividend less than projected
Apr. 22, 2020 4:38 PM ET|About: Kinder Morgan, Inc. (KMI)|By: Carl Surran, SA News Editor

Kinder Morgan (NYSE: KMI) -0.9% after-hours as Q1 earnings came in slightly below expectations and distributable cash flow drops 8% Y/Y to $1.26B.

Q1 adjusted EBITDA fell 5.1% Y/Y to $1.85B and revenues slid 9.4% to $3.11B; Q1 dividend rose 5% to $0.2625/share ($1.05 annualized).

"While we have the financial wherewithal to pay our previously planned dividend increase, with significant coverage, in unprecedented times such as these, the wise choice is to preserve flexibility and balance sheet capacity. Consequently, we are not increasing the dividend to the $1.25 annualized that we projected, under far different circumstances, in July of 2017," the company says.

Kinder says it has cut expenses and sustaining capex by more than $100M from its planned budget, and has reduced its 2020 expansion capital outlook by $700M, or nearly 30%.

The company says these actions more than offset the reduction in DCF and should result in an improvement in DCF less expansion capex of ~$200M compared to budget.

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To: E_K_S who wrote (86)4/22/2020 7:55:25 PM
From: robert b furman
   of 145
 
Hi E_K_S,

For my money, the 5% dividend raise is dandy.

I feel even better that they have become and are now showing that they believe the balance sheet and free cash flow is more important than profitless growth.

Don't get me wrong I'd love th extra 20 cents.

That being said, with this new viewpoint, my bet is we get it even faster in the next 2-5 years.

I like the call - it's what I've have said as well if in the board of directors meeting.

I'll take that raise every year till I parish and smile about it.

Thanks for posting the earnings!

Here is the slide show:

mail.google.com

Bob

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To: robert b furman who wrote (87)4/22/2020 10:58:31 PM
From: E_K_S
   of 145
 
I picked up some KMI earlier this week. Was Buying WMB earlier this month at about the same price. I like both of the companies and believe they could be up 50% by this time next year (or higher).

Always have to move the oil & NG.

EKS

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