12-03-2015, 01:00 AM
I couldn't stay away from the Kinder empire today...The scale is too compelling. 46 billion market cap / 5 billion cash from ops per the negative Moody's analysis is a FFO or PE ratio of 9.2.
I see it as a simple multiple expansion/contraction story. OPEC fear of less oil shipped in USA means less revenues for American MLPs, thus more fear in the sector. I think KMI will be fine. When oil goes back up, multiple goes back up, etc. Dividends should be fine.
Plus they aren't doing that much capex in the next year.
I see it as a simple multiple expansion/contraction story. OPEC fear of less oil shipped in USA means less revenues for American MLPs, thus more fear in the sector. I think KMI will be fine. When oil goes back up, multiple goes back up, etc. Dividends should be fine.
Plus they aren't doing that much capex in the next year.