The stock has taken a 12% beating over the past year while virtually every other viable stock has had good gains. When will the company get this maintenance thing behind it???
sean_erickson2000 • Mar 3, 2014 5:11 PM "They pay out their cashflow from their existing operations and then issue equity to fund expansions or new operations."
BWP is going through what Kinder Morgan's El Paso recently experienced. So yes it is relevant. It got so bad that Richard Kinder had to try and prop up the stock.
Investors can just buy and hold, they do not need to be concerned with all this bookkeeping stuff. There will be an increased demand for pipelines in the future.
KMP's reported DCF per unit for 2013 was $5.39, up from $5.07 for 2012. KMR expects to declare distributions of $5.58 per share for 2014 and the distribution to KMR shareholders will be paid in the form of additional KMR shares.
The figures your bookkeeper is giving you does not apply to pipelines. The Distribution is paid out of available cash. Accountants was to replace the 100 year pipe sooner. In a hundred years we may not replace the pipe at all.
Bookkeepers make assumptions about stuff that they know nothing about. What matters is the sustainable distributable cash flow, of which Kinder Morgan has plenty because Kmr plows back over a half a billion dollars a year in cool, clean unadulterated cash.
We can sustain the current distribution indefinably, we issue debt and equity to fund new projects. Projects are usually twenty year contracts with inflation adjustments built in. We need $14 Billion for new accretive projects in the next five years.
Kmr higher yield, no K-1s. Search.. Arthur Paullin's Investors' Primer For Kinder Morgan