We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks
KMI- a fallen high dividend yielder - for how long?
An SI Board Since March 2016
Posts SubjectMarks Bans Symbol
84 47 0 KMI
Emcee:  robert b furman Type:  Moderated
Kinder Morgan is the countries largest pipeline company in the US.

It has recently reduced its dividend to be able to internally fund and expand its operations - primarily the transporting of natural gas.

With the natural gas resources growing from the innovation of fracking technologies there is a mega trend at work with increasing uses of natural gas.

These growth areas are the result of four long term growth categories:

Electrical generation that is replacing coal fired plants with that of natural gas
Exporting of Natural gas to Mexico
Industrial use of natural gas in making hydro carbon based products
The exporting of LNG to world markets.

KMI currently has the largest distribution network in the US.

KMI sees a huge growing demand for more pipelines to serve the above four growth sectors.

The need for additional capital has forced a reduction of the dividend so that funds can be raised internally.

The application of these funds have been diverted from dividend streams to future growth projects.

I propose that after the expansion phase of their pipeline system is accomplished a strong dividend policy will be reintroduced.

To accumulate KMI shares during this stock price weakness is an opportunistic, but long term investment that will pay dividends into the long term future at above market yields.

The price weakness started when KMI announced it was buying (along with Brookfield Infrastructure)the remaining assets of the troubled Natural Gas Pipeline of North America:

Kinder Morgan, Inc. ( KMI) and Brookfield Infrastructure Partners L.P. (NYSE: BIP, TSX: BIP.UN) today announced a definitive agreement whereby they will jointly acquire, from Myria Holdings, Inc., the 53 percent equity interest in Natural Gas Pipeline Company of America LLC (NGPL) not already owned by them for a total purchase price of approximately $242 million. KMI will pay approximately $136 million and increase its ownership interest from 20 percent to 50 percent, and Brookfield Infrastructure will pay approximately $106 million and increase its ownership from approximately 27 percent to 50 percent. The transaction values NGPL at a total enterprise value of $3.4 billion, inclusive of existing debt.

Kinder Morgan, Brookfield Infrastructure to Acquire Myria Holdings Inc.'s Majority Interest in Natural Gas Pipeline Company of America

At this point Standard and Poors has put KMI on a credit watch and that has caused the reduced dividend - which was needed to shore up KMI credit rating.

This is where present and future LNG ports to export LNG are located - well within KMI'S pipeline presence.

This is a description of the assets bought by KMI and Brookfield:

One can easily see that Kinder has added to their existing network a 9200 mile pipeline that is well situated to grow Mexico exports and LNG exports as well as electrical generation plants and industrial plants for converting hydrocarbons to many products.

Once again this is a long term plan, and huge in scope.

It will be a long term dividend growth retirement plan for me.

I encourage others to join in the study of this expansion and critique weaknesses that may be mentioned.

Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
84Kinder Morgan, Energy Transfer rally after insider buys Mar. 2, 2020 10:58 AM ETE_K_S-March 2
83Nice action so far today - new 52 week high. Not too long ago I was looking at 2candsrr-January 9
82Kinder Morgan, Inc. (NYSE:KMI) today announced it has sold all of the approximatE_K_S-January 9
81Hi E_K_S, A lot of pipes are getting connected and will be this year - mostly irobert b furman-12/5/2019
80On my sale I gave up the dividend so need to factor that into my next Buy. I alE_K_S-12/5/2019
79Hi E_K_S, I bought 900 KMI at $19.67 on 11/27 (three days early). When price hrobert b furman-12/5/2019
78Kinder Morgan sees lower core earnings but higher DCF in 2020 Dec. 5, 2019 10:22E_K_S-12/5/2019
77Looks like a buy today - I bought some more today. If the $1.25 is approved nexrobert b furman-12/3/2019
76I added to today. Been a while since I did, and biz is getting better. KMI shorobert b furman-11/27/2019
75Is it time to pull the plug on KMI? Down again today. Insiders keep on buying asmiraje-11/27/2019
74KMI shares rise as Richard Kinder buys 300K shares Nov. 1, 2019 11:13 AM ET|AbouE_K_S-11/1/2019
73Sounds neat, Keep me updated. I'm thinking of using evacuated tubes for herobert b furman-10/16/2019
72Ok good to know. Plan to pay cash for the project estimate it to run $300K-$350E_K_S-10/16/2019
71HI E_K_S, By the time they get both permian pipelines built (although they are robert b furman-10/16/2019
70KMI my No. 3 portfolio position. Was looking at selling 20% of my top 10 holdinE_K_S-10/16/2019
69Hi E_K_S, Kinder is now pumping LNG out of elba island and one of the Permian probert b furman110/16/2019
68Kinder Morgan Q3 2019 Earnings Preview Oct. 15, 2019 5:35 PM ET|About: Kinder ME_K_S-10/16/2019
67One great big accomplishment - Let the free cash flow BEGIN !! Kinder Morgan strobert b furman-9/25/2019
66Hi E_K_S, Thanks for the great update. As this keeps up, I'm going to haverobert b furman-8/1/2019
65Kinder Morgan's Gulf LNG project wins U.S. approval for exports Aug. 1, 2019E_K_S-8/1/2019
64Hi E_K_S, I have finally averaged down to be above my cost by less than a buck.robert b furman-3/27/2019
63Kinder Morgan downgraded at Citigroup on valuation Mar. 27, 2019 3:19 PM ET|AbouE_K_S-3/27/2019
62With that lawst Buy, I got out of all my high cost $30.shares and replaced them E_K_S-12/18/2018
61Great buy E_K_S! We'll be grinning like a chessie cat when that $1.25 dividrobert b furman-12/18/2018
60Another 25% Buy for KMI at $15.49/share that reflects the completion of my sharE_K_S-12/18/2018
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):