KMI
Kinder Morgan Inc
Energy
07/18/2016
Presented
| Date | 07/14/2016 |
| Price | $20.90 |
| Market Cap | $46.59B |
| Ent Value | $83.35B |
| P/E Ratio | 348.33x |
| Book Value | $15.78 |
| Div Yield | 0% |
| Shares O/S | 2,229.00M |
| Ave Daily Vol | 16,471,110 |
| Short Int | 2.83% |
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: Buckeye Partners LP (BPL), Enterprise Products Partners LP (EPD), Kinder Morgan Inc (KMI), Magellan Midstream Partners LP (MMP), Southern Co/ The (SO), Spectra Energy Corp (SE)
Highlights
Kinder Morgan (KMI) is one of the most misunderstood and attractive investment opportunities in the midstream sector. The presenter is long at this time and sees the $19 - $20 realm as a good entry point with a favorable risk/ reward. His bullish view is based on 1) the quality of KMI’s overall business/ revenue streams, 2) an attractive valuation, and 3) optionality around asset sales and capital allocation. KMI should be able to delever more rapidly than the market expects, and based on a reasonable yield and/ or a fair multiple (to either EBITDA or distributable cash flow) the stock could make its way to $30 ($1.80 dividend equating to a 6% yield or 12x - 15x $2+ of distributable cash flow) over the next 12 -18 months. Longer-term, he sees the potential for shares to trade at $40+ again.
The long thesis is predicated on three core points:
- KMI operates a high quality business.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.