KMI
Kinder Morgan Inc
Energy
09/28/2015
Presented
| Date | 09/24/2015 |
| Price | $29.34 |
| Market Cap | $64.17B |
| Ent Value | $128.28B |
| P/E Ratio | 39.12x |
| Book Value | $16.07 |
| Div Yield | 6.68% |
| Shares O/S | 2,187.00M |
| Ave Daily Vol | 14,987,952 |
| Short Int | 2.24% |
Current
| Price | $24.76 |
| Market Cap | $55.04B |
| Kinder Morgan, Inc. operates as a holding company. It owns and operates pipelines and terminals that transport natural gas, gasoline, crude oil, carbon dioxide and other products and stores petroleum products, chemicals and handle bulk materials like ethanol, coal, petroleum coke and steel. The company operates through six segments: Natural Gas Pipelines, Products Pipelines, CO2, Terminals, Kinder Morgan Canada and Other. The Natural Gas Pipelines segment is engaged in the sale, transport, processing, treating, storage and gathering of natural gas. The Products Pipelines segment is engaged in the transportation and terminating of refined petroleum products, including gasoline, diesel fuel, jet fuel and natural gas liquids. The CO2 segment is engaged in the production and sale of crude oil from fields in the Permian Basin of West Texas and the transportation and marketing of carbon dioxide used as a flooding medium for recovering crude oil from mature oil fields. The Terminals segment is engaged in the translating and storing of refined petroleum products and dry and liquid bulk products, including coal, petroleum coke, cement, alumina, salt and other bulk chemicals. The Kinder Morgan Canada segment transports crude oil and refined products from Alberta, Canada to marketing terminals and refineries in British Columbia, the state of Washington and the Rocky Mountains and Central regions of the U.S. Kinder Morgan was founded by Richard D. Kinder and William V. Morgan on August 23, 2006 and is headquartered in Houston, TX. |
Publicly traded companies mentioned herein: Kinder Morgan Inc (KMI)
Highlights
Shares of Kinder Morgan (KMI) presently yield ~7.5% based on his 2016 numbers and appear to be attractively valued, said the presenter. He is long the stock and sees the risk/reward as attractive at $29/share. If his model proves to be accurate KMI might have to issue 250 million shares at $35 to cover a "40 cent gap" (the difference between 2019 guidance and what they would have to issue vs that guidance) assuming 10% growth out to 2019; however, the dividend could be around $2.95 (in 2019) and investors today have the opportunity to buy a 9% yield. In his opinion, in a worst case scenario the $0.40 gap is “not a big deal.”
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