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.  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
421 60 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
421Unless the IRA is a Roth.Willitsoar1September 29
420Trans Mountain toll deal wins approval from Canadian energy regulator, raising cE_K_S-September 29
419Hi miraje, KMI loves to dip. Not really too often. It has a classic sideways corobert b furman-September 25
418All GREAT TRADES! That's why I like you owning the same shares I do. Werobert b furman-September 25
417Totally agree. My KMI is from a long held IRA where I sold long term puts with robert b furman-September 25
416We could be seeing 40 if KMI announced a billion or two in a stock market repurcmiraje-September 25
415When you die, your heirs get a step up in basis too. I can never really sell myE_K_S-September 25
414if kmi is bought in an ira then forget about 20% max tax on dividends as all dolJohn Carragher-September 25
413<i> Biggest knock on EPD is it is an LP which is taxed as personal incoElroy-September 25
412Hi Elroy, Biggest knock on EPD is it is an LP which is taxed as personal incomrobert b furman2September 25
411Fair enough. I find K-1 tax reporting fairly easy as long as you don't sellElroy-September 25
410EPD is a MLP that requires K1 reporting. I own it but not adding and/or sellingE_K_S1September 25
409<i> KMI remains a great long term buy and hold.</i> Any opinion Elroy-September 25
408We could be seeing 40 if KMI announced a billion or two in a stock market repurcrobert b furman4September 25
407 For Kinder Morgan (KMI), Capital One Securities also initiated coverage on SE_K_S-September 23
406RBC Lifts Price Target on Kinder Morgan to $36 From $35, Keeps Sector Perform RaE_K_S1September 22
405KMI is a prize. Anybody have a position in CRGY? I've made a number of smaSmart_Asset2September 19
404Great news. Greater cash flow and stock buybacks coming.robert b furman-September 19
403Search results confirm that Kinder Morgan (KMI) has been announced as the sole mE_K_S-September 19
402Some more good news, if this huge project gets past the inevitable greenie lawsumiraje5September 19
401Hi E_K_S, VP of terminals and pipelines serial sellers ( kids in college or newrobert b furman-August 25
400Hi Miraje, I have always thought those who supported the Green New Deal were furobert b furman1August 24
399 KMI - Kinder Morgan, Inc. - SEC Form 4 Insider Trading Screener E_K_S-August 24
398Hi Bob, KMI is my second largest buy and hold position. I've added shares imiraje-August 24
397Hi Miraje, I've noted the same thing. It got a bump up in price with the Wrobert b furman3August 24
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):