• A spate of pipeline accidents after change of ownership could be due to other events or just plain chance. Kaiser does not link cause and effect between presumed cuts to maintenance capex and any increase in accidents.
• Maintenance capex does not have to exceed DD&A expense.
• Kinder Morgan is not spending less than other pipeline operators on maintenance capex on a per mile of pipeline basis.
• Kinder Morgan does not appear, therefore, to be inflating distributable cash flow.
As a result, it is my opinion that Kaiser's and Hedgeye's argument is significantly flawed and I would not let it dictate any investing decision.