KMI
Kinder Morgan Inc
Energy
02/20/2018
Presented
| Date | 02/15/2018 |
| Price | $17.31 |
| Market Cap | $38.58B |
| Ent Value | $79.17B |
| P/E Ratio | 1731x |
| Book Value | $15.17 |
| Div Yield | 2.89% |
| Shares O/S | 2,229.00M |
| Ave Daily Vol | 15,906,192 |
| Short Int | 2.68% |
Current
| Price | $24.76 |
| Market Cap | $55.04B |
| Kinder Morgan, Inc. engages in the operation of pipelines and terminals that transport natural gas; gasoline; crude oil; carbon dioxide (CO2) and other products and stores petroleum products chemicals; and handles bulk materials like ethanol, coal, petroleum coke and steel. It operates through the following segments: Natural Gas Pipelines, CO2, Terminals, Product Pipelines and Kinder Morgan Canada. The Natural Gas Pipelines segment engages in the ownership and operation of major interstate and intrastate natural gas pipeline & storage systems, and natural gas and crude oil gathering systems and natural gas processing & treating facilities. The CO2 segment is focused on the production, transportation and marketing of CO2 to oil fields that use CO2 as a flooding medium for recovering crude oil from mature oil fields to increase production. The Terminals segment engages in the ownership and/or operation of liquids and bulk terminal facilities located throughout the U.S. and portions of Canada that transload and store refined petroleum products, crude oil, chemicals, and ethanol and bulk products, including coal, petroleum coke, fertilizer, steel and ores. The Products Pipelines segment owns and operates refined petroleum products, NGL and crude oil and condensate pipelines that primarily deliver, among other products, gasoline, diesel and jet fuel, propane, crude oil and condensate to various markets. The Kinder Morgan Canada segment is focused on the operation of the Trans Mountain pipeline system that transports crude oil and refined petroleum products from Edmonton, Alberta, Canada to marketing terminals and refineries in British Columbia, Canada and the state of Washington. The company 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), Magellan Midstream Partners LP (MMP), Plains All American Pipeline LP (PAA), TransCanada Corp (TRP), Williams Companies Inc/The (WMB)
Highlights
The presenter is long shares of Kinder Morgan (KMI), seeing a valuation mismatch due to what he views as an overreaction to oil price fluctuations in 2014 – 2016, which led to ratings downgrades that forced KMI to cut dividends. The presenter states the underlying financials and contracts of KMI were not actually impacted, and thus the currently depressed valuation should correct. The presenter conservatively targets $27 for KMI shares, assuming $2.70 of distributable cash flow per share by 2022 and 10% yield, noting there is further upside should the yield come in closer to the 5% that peers enjoy and that KMI historically received.
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