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KMI- a fallen high dividend yielder - for how long?
An SI Board Since March 2016
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55 42 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 !!!
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55Hi E_K_S, I have some 200 at 35.00 and the rest were assigned from some $25.00 robert b furman-June 29
54Some tax loss harvesting. Sold 40% of KMI at $17.75/share w/ the expectations tE_K_S-June 29
53One analyst believes that the sale of the Trans Mountain Pipeline is a sign of mfred woodall-June 28
52Not totally sure of how a fixed fee is defined. I'm guessing that a minimumrobert b furman-June 18
51Are most of their pipelines contracted for 'fixed fee" now or can they E_K_S-June 18
50Its Bullish. Pipeline companies are adding lubricity to the oil so it flows thrrobert b furman2June 17
49Hey Bob, I have read in the last few days that oil and gas pipelines are maxed oJerome-June 17
48Hi Bob,......two dates that are important for KMI are June 22, which is the nextJerome1June 11
47Major sale of Trans Mountain Pipeline: 247wallst.com Brings 2 billion to the brobert b furman-May 31
46MACD and Stochastic oscillator are triggering bullish signal. On watch for clearAlejandroo Green-May 31
45Hi E_K_S, I view that as a relief. I've read some articles that state the robert b furman1May 29
44Canadian government to buy Trans Mountain Pipeline for C$4.5B Kinder Morgan ( KME_K_S-May 29
43Hi Jerome, The biggest LNG ships are so efficient they will make the smaller shrobert b furman1April 19
42Hi Bob, I opened a position on KMI this morning. I have read about the future Jerome-April 19
41I think so. Daily chart : screencast.com Weekly : screencast.com Kinder wasrobert b furman1April 19
40Any chance we see the previous high of $40/share buy 2020? Seems like the tableE_K_S1April 19
39Earnings out this morning and stockholders geta 60 % bump in next years dividendrobert b furman1April 19
38Hi alejandro, Thanks for the great chart and post!!! Bobrobert b furman-February 26
37bullish crossover in MACD and Stochastic oscillator. Technically, a potential goAlejandroo Green1February 26
36A good write up of what KMI is in the middle of : US Ethane Consumption Expecterobert b furman-February 21
35Hi JB, Believe me - I've thought of that before I typed what my bet is. Werobert b furman-February 20
34Hi Bob, <i>Next years dividend (if done as stated) will yield 5.11 %</miraje-February 20
33Hi Miraje, I'm still holding the bag on this one. I am in anticipation of robert b furman-February 20
32Is anyone still holding this thing? I've ridden it down since the divi slashmiraje-February 20
31Hi alanrs, I rely on you to know this stuff, that's why I don't have trobert b furman-8/21/2017
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