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Kinder Morgan Energy Partners, Message Board

  • printeam1 printeam1 Jun 20, 2005 4:55 PM Flag

    KMR 1.25% up today

    As CHARTNY has said before, this cannot be sustained.
    Anybody has a plausible explanation for what's been happening in the last 10 days, or so?

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    • Yes, NRGP should be the same (although it is at the discretion of the BoD). NRGP owns a chunk of NRGY units as well as the GP(which includes the incentive distribution rights), which is of course what makes the GP attractive. The distribution at NRGP should grow much much much faster(in terms of percentage) than NRGY. In other words, you are paying more(higher multiple) for the distribution at NRGP, but the growth will be much much larger (essentially the same story at XTXI, MWP, KMI and of course KSL). KSL's just happened to work out in terms of price and percentage.

    • I am not 100% sure of my facts. The Kaneb website is now history (it links you to the Valero site). That was where some of my understanding came from of the unique (and murky) relationship between KPP and KSL.

      Do you know if NRGP's distribution setup at all resembles KSLs? The faster-than-KPP distribution growth for KSL was a dominant feature I am going to miss for my long term investing.

    • Actually KSL was the GP of KPP and they held the incentive distribution rights. I am not sure if you are confusing some of the subtler points of the picture. For example, NRGP (the GP of NRGY) is also structured as KSL was (an LLC, which for tax purposes is the same as an MLP). Since KSL and NRGP are "partnerships", they have a GP, although they have/had no incentive distribution rights or 2% take, just control mechanisms (principal officer, controllers, BoD).

    • I agree with most of what you wrote. One quibble though: KSL was not the real GP for KPP. The entire Kaneb operation has now been bought by Valero (VLI), so it is a moot point. However I suggest you remove KSL/KPP from your historical comparisions.
      KSL was a odd (and wonderful) duck, IMHO. While on paper they were listed as the GP of KPP, they really weren't the GP. KSL was traded as an MLP, with a unique distribution increase relationship to KPP (initially for every $1.00 in KPP distribution increases, KSL's distribution was guaranteed to go up $1.25. This was later upped to $1.50 per $1.00).
      As close as I can understand the complicated GP story, the real GP of KSL and KPP was a privately held concern owned by the chairman and a few others .
      All this is now history, as KPP and KSL no longer exist as of 7/1/2004. Nobody every has to scratch their heads wondering about what the heck KSL is.
      To reiterate my point: don't view KSL as the GP for KPP in examinations of GP vrs. MLP outcomes.

    • Opps, IRA account. Put brain in gear before mouth in motion.

    • Hmmmmmm, I didn't think that KMI was untaxed.

    • Buying the GPs is my perfered way to use IRA funds.
      Own KMI in my IRA and KMR in my taxed accounts.
      No need to say the obvious that KMI with untaxed dividends has and will likely out perform KMR.


    • shartyny wrote: "just select option to have no emails" in the MLP 'group'.

      Yep - you CAN escape the emails - and they are a pain due to higher traffic than one might want. And I should have pointed out that opt out option that both you and geo12ar stated.

      I guess I should have stressed more of the positive points - that the emails are a pain, BUT THEY ARE WORTH IT.

      For those of you who read the EPD board - just yesterday I posted one of the articles from the MLP group on the EPD board - a long story on the history of a pipeline joint owned by EPD and VLI. Very good story IMHO.

      If recs [recommendations] are a good measure of the value of a post - then that posting was valued.

      BTW - 'recs' are something ALL of us should do a bit more.

    • You can change your profile so that you don't automatically get any e-mail. I am a member and periodically look at the messages(and articles) without the issue you raised.

    • Re to:factoids
      "You should be warned that the group messages come by e-mail - and this will add from four to seven more LONG mesages a day to your e-mail traffic."

      NO, just select option to have no emails.

      I get no emails, just read the messages online when I want to see them and which ones I want to see. Works for me.


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