SI
SI
discoversearch

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.  For example, here is how to disable FireFox ad content blocking while on Silicon Investor.
Technology Stocks
KMI- a fallen high dividend yielder - for how long?
An SI Board Since March 2016
Posts SubjectMarks Bans Symbol
62 43 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:

pipeline.kindermorgan.com

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.

LETS MAKE SOME LONG TERM MONEY HERE !!!
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
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
59Kinder Morgan sees 10% growth in distributable cash flow next year to $5B Dec. 3E_K_S-12/3/2018
58Right kind of thinking Eric, Bobrobert b furman-10/26/2018
57Did another Sell (9/5/2018) of KMI @ $17.62/share and bought back 50% of those tE_K_S110/26/2018
56After 31 days was able to buy back my shares sold at $17.75/share for $17.62/shE_K_S-8/7/2018
55Hi E_K_S, I have some 200 at 35.00 and the rest were assigned from some $25.00 robert b furman-6/29/2018
54Some tax loss harvesting. Sold 40% of KMI at $17.75/share w/ the expectations tE_K_S-6/29/2018
53One analyst believes that the sale of the Trans Mountain Pipeline is a sign of mfred woodall-6/28/2018
52Not totally sure of how a fixed fee is defined. I'm guessing that a minimumrobert b furman-6/18/2018
51Are most of their pipelines contracted for 'fixed fee" now or can they E_K_S-6/18/2018
50Its Bullish. Pipeline companies are adding lubricity to the oil so it flows thrrobert b furman26/17/2018
49Hey Bob, I have read in the last few days that oil and gas pipelines are maxed oJerome-6/17/2018
48Hi Bob,......two dates that are important for KMI are June 22, which is the nextJerome16/11/2018
47Major sale of Trans Mountain Pipeline: 247wallst.com Brings 2 billion to the brobert b furman-5/31/2018
46MACD and Stochastic oscillator are triggering bullish signal. On watch for clearAlejandroo Green-5/31/2018
45Hi E_K_S, I view that as a relief. I've read some articles that state the robert b furman15/29/2018
44Canadian government to buy Trans Mountain Pipeline for C$4.5B Kinder Morgan ( KME_K_S-5/29/2018
43Hi Jerome, The biggest LNG ships are so efficient they will make the smaller shrobert b furman14/19/2018
42Hi Bob, I opened a position on KMI this morning. I have read about the future Jerome-4/19/2018
41I think so. Daily chart : screencast.com Weekly : screencast.com Kinder wasrobert b furman14/19/2018
40Any chance we see the previous high of $40/share buy 2020? Seems like the tableE_K_S14/19/2018
39Earnings out this morning and stockholders geta 60 % bump in next years dividendrobert b furman14/19/2018
38Hi alejandro, Thanks for the great chart and post!!! Bobrobert b furman-2/26/2018
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
Copyright © 1995-2019 Knight Sac Media. Data provided by IEX, Alpha Vantage, Coinbase, Binance, Fintel and CityFALCON News - See Terms of Use.