Don't . . .make . . . the . . . panda . . . ANGRY! Looks like Kinder Morgan has a bit more cred than LINE with the investment community. Of course, this did bounce back to the mid $30's the day of Kaiser's conference, it was the later SEC stuff that sunk it back.
drwskier....great point. Unfortunately for LINN Shareholders, while there was some insider buying, even that has dried up. Tomorrow, September 10th is the big report from Hedgeye on KMI. There's at least a modest chance Richard Kinder will speak loudly and clearly about that, rather than have his company endure the torture LINN is undergoing, seemingly without end.
Messing with Richard Kinder is not a good idea. Kinder is the smartest guy in the room, and he makes sure he hires the "other" smartest guys in the room. Where does that leave Hedgeye? Oh, that's right, Hedgeye hires ex hockey jocks...
This will be very funny to watch. Rumor has it that Hedgeye will be targeting the CO2 (tertiary recovery) business of Kinder Morgan, which has been scrutinized numerous times by Kurt Wulff. The fact that the CO2 business now only makes up about 15% of Kinder Morgan and growing smaller with every new pipeline project and acquisition that they make, only makes Hedgeye look worse. One could go further and say that of the whole CO2 business, about 20% of it is based on selling CO2 to 3rd parties and the other 80% is indeed tertiary recovery. The rub has been that pundits feel like KM has not properly accounted for maintenance capital for the tertiary recovery (depletion). The only issue is that, as Kinder likes to remind them, big oil fields get bigger. This has been very true in the Permian, where virtually every producer is finding they have more opportunities on their existing production, with Wolfberry, Sprayberry, Wolfcamp, Bone Springs etc development, plus the outer limits of the fields are being expanded. Not only have the volumes not dropped off, but Kinder has managed to continue to push volumes higher year after year. If Hedgeye is indeed targeting the CO2 business, then they are targeting something that is ~12% of the whole enterprise (80% of the 15%). Clowns.
I am eagerly looking forward to seeing the foolishness that Hedgeye releases.