 Tim Lopes
Chief Risk Officer |
 Seth Bancroft
Junior Analyst |
October 24, 2011
Purchase Price: $77.05
Target Price: $91.00
- KMP has historically been a steady performer due to its high dividend yield (currently 6.1%) and its steady cash flow. Kinder Morgan’s use of long-term fixed price contracts limits its exposure to “risk on, risk off” market environments.
- The KMI acquisition of EP will reduce operating costs beginning Q3-2012.
- Legislation surrounding hydro-fracking and its environmental effect will be favorable for KMP and the industry. Domestic jobs and economic growth are two focal points of the current political campaigns, thus less regulation on the booming natural gas industry.
- Kinder Morgan is currently gauging customer interest in a possible expansion of its Alberta Oil Sands pipeline - currently the only pipeline servicing the west coast from the Oil Sands.
- KMP submitted a pipeline application which would put a Natural Gas line running from the Marcellus Shale –one of the largest known natural gas deposits in the world- to its Cochin Pipeline in Michigan.
Read Tim Lopes's bio here. Read Seth Bancroft's bio here.