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+--- Thread: KMI (/showthread.php?tid=456)
RE: KMI - rapidacid - 12-08-2015
Confused. Is KMI presenting at the WFC conference or not?
8K: http://api40.10kwizard.com/cgi/convert/pdf/KMI-20151207-8K-20151203.pdf?ipage=10613506&xml=1&quest=1&rid=23§ion=1&sequence=-1&pdf=1&cik=1506307&dn=1
Presentations: http://ir.kindermorgan.com/presentations-webcasts
RE: KMI - DividendGarden - 12-08-2015
(12-07-2015, 10:29 AM)lucas03 Wrote:(12-07-2015, 10:19 AM)DividendGarden Wrote: I am curious to see the company's next press release. I think they will cut the dividend. It's something like a 13% yield today. Cutting by 50% will still yield 6-7%, but it will free up $1.5 billion.
I also hope that they will cut. Yield 6-7% is pretty nice for new investors, but its 3-3,5% for current investors
Agreed. I would be happy with a 50% dividend cut to remain cash-flow positive without incurring additional debt.
RE: KMI - DividendGarden - 12-08-2015
Kinder Morgan board is meeting today.
http://seekingalpha.com/news/2971896-kinder-morgan-board-reportedly-meets-today-as-stock-sinks-again
RE: KMI - rapidacid - 12-08-2015
Word is 2016 divvy of 0.50 vs 2.0 expected.
http://www.streetinsider.com/dr/news.php?id=11137170
RE: KMI - Roadmap2Retire - 12-08-2015
Yup, dividend cut announced
http://ir.kindermorgan.com/press-release/kinder-morgan-announces-2016-outlook
RE: KMI - ChadR - 12-08-2015
75% dividend cut will hurt. Glad I only have 50 shares. Don't want to sell, but might if the cut is that big.
RE: KMI - Rasec - 12-08-2015
75% is more than i thought (I was betting on 50%), i'll keep my 152 shares, I'll keep reinvesting dividends, but will not be buying more until I see a solid return, which might take a couple of years (if at all).
RE: KMI - EricL - 12-08-2015
Dividend cut sucks, but in the long run is the best choice of action for the company and for shareholders.
Frees up $3.37B ($1.51x2.23B shares) in annual cash flows which it can use to fund growth projects and pay down debt. This allows the company to maintain its investment grade credit rating while also avoiding selling off assets at distressed prices to meet cash flow needs.
Could be a tremendous buy if it drops much further. At a $15 share price it would trade at just 6.7 times the forecast DCF of $5B and would also yield 3.3%, which I would expect to see a return to growth in the future once the balance sheet is cleaned up.
The business remains the same as it was at $40 earlier this year and is producing plenty of cash flow. The company simply got ahead of itself with dividend payments and their high leverage caught up to them.
RE: KMI - DividendGarden - 12-08-2015
KMI is down 7% in afterhours.
RE: KMI - Rasec - 12-08-2015
The $14.5 marks 50% of my investment "gone".
RE: KMI - lucas03 - 12-08-2015
(12-08-2015, 05:28 PM)Rasec Wrote: The $14.5 marks 50% of my investment "gone".Under 30 is still better than many investors I guess. I have limit order on $15, not sure if I should wait extra day or two. I guess a lot of DGI investors will sell (since dividend cut is common sell criteria)
EDIT: Ups, my limit order did not come through. My orders are daily reseted and I missed $14,5 price. Today its 17,22
RE: KMI - Caversham - 12-08-2015
I'm surprised the dividend was cut by 75%, I was expecting 40%-50%. I hope KMI uses some of the cash flow to buy back shares (preferably the preferred shares) while the price is severely depressed.
The company still has solid assets and strong cash flow. I plan to initiate a small position now that the uncertainty around the dividend is gone.