The Motley Fool has an article today comparing KMP with a new pipeline MLP that just came into existance. (FYI, the Fool has long been a big fan of Richard Kinder and KM* in general) Last week Crosstex Energy Inc (XTXI) did an IPO on Crosstex Energy LP (XTEX). The article compares this new entity with "the king". Not surprisingly, KM* comes out looking an awful lot better than XT*. The article is available at www.fool.com/News/mft/2004/mft04011517.htm
(I bet Yahoo eats this message by tomorrow, as it contains a link to a non-Yahoo site. We'll see)
Correct about the yield at XTXI...price went up fast and yield came down. In any event, XTXI is paying $1.20 annualized and XTEX is paying $2.80. Someone stated that XTXI is paying do dividend...that is incorrect. As usual, looks like rrb has it figured out...
The article below says the inital dividend yield on XTXI (the GP, not the LP) is 6.9%. The writer may have been calculating that based on the initial pricing of $16.50 to $18.50. In that case, $0.30 per quarter sounds about right. Of course, it wound up pricing at $19.50 and then went to $25 on the first day.
As Warren Buffett famously said: "In the short term, the market is a popularity contest; in the long term, it is a weighing machine." Crosstex Energy Inc. may be the popular choice this week, but when investing for the future, I would place my bets on Kinder Morgan.