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KMI
#1
Does anyone here own KMI or any of the Kinder Morgan family? I own KMI and am thinking about adding some more here. At this years projected dividend, the yield is over 6% and growth in the dividend has been in the low double digits to high single digits. One of the best things about KMI I feel is how much the owner buys shares. He owns several billion dollars worth.

Only thing holding me back is the lack of clarity when looking at their numbers. Things just aren't as clear as looking at the cash flows or balance sheet of a PEP. I know the pipeline/MLP industry has some unique accounting, but it has been around for decades without much problems. Financially, their growth appears to comes with a lot of debt(EV/EBITDA > 11) and with not much cash on hand, if there is a major economic crisis in the works, they could be in trouble. I want my companies to consistently growing and paying a dividend, yes, but I also want their equity(aka book value) per share to be rising. I know much of the added debt recently was due to the "takeover" of El Paso Pipelines (I am unsure on how the gained IDRs are valued on the balance sheets?), but I suppose Kinder believes it was well worth risk to add a quality asset like El Paso.

Will KMI take time to "repair" the balance sheet or will they be in perpetual growth mode, which the former would make this an excellent DGI pick imo, but the latter will undoubtably lead to disaster as some point. Is the risk worth the reward here? Are other pipelines on your radar?
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#2
EPD is likely the best company in the space but the yield is too low for me. I own shares of both KMI and PBA, with current sentiment as slow accumulation. Each is modestly weighted at 1.5%- 2% at present.
Alex
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#3
I am weary of investing in MLPs that give me K1s. Some people say they are no problem, others say they are a headache x10. PBA has been a great investment. I owned some as a result of the PVX takeover. Sold in the high 20s unfortunately, a while ago.
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#4
SE,is my best performer
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#5
I give the k-1's to my CPA. No trouble from my point of view. Cost of CPA for tax prep, $160. Not an efficient use of my time to save such a modest amount of cash.
Alex
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#6
(03-19-2014, 10:11 PM)Concasto Wrote: I am weary of investing in MLPs that give me K1s.

KMI does not issue K1's. I am considering initiating a position in KMI.
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#7
(03-20-2014, 11:18 AM)DividendGarden Wrote:
(03-19-2014, 10:11 PM)Concasto Wrote: I am weary of investing in MLPs that give me K1s.

KMI does not issue K1's. I am considering initiating a position in KMI.

Right, I was speaking to EPD mentioned above. I think I will be adding to my KMI position here soon.
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#8
Consider KMR (or EEQ) in you IRA or 401K. Better effective yield:

http://www.nasdaq.com/symbol/kmr

http://www.nasdaq.com/symbol/eeq

And no K-1 or filing taxes in the states your pipeline earns $$.
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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#9
(03-21-2014, 09:26 PM)Robandcindy2 Wrote: Consider KMR (or EEQ) in you IRA or 401K. Better effective yield:

http://www.nasdaq.com/symbol/kmr

http://www.nasdaq.com/symbol/eeq

And no K-1 or filing taxes in the states your pipeline earns $$.

Growth at KMI will always be better than KMP or KMR. KMI is expecting a CAGR of 8%, while only 5% at KMP/KMR. With the yields pretty close(about 6% vs 8% for 2014), I will be going with KMI.

If the discount ever becomes huge again for KMR vs KMP, KMR will be worth a look.
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#10
Anyone else submitting a claim form for the proposed settlement against KMI?

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