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Kinder Morgan Energy Partners Message Board

  • fknight98 fknight98 Apr 10, 1999 7:55 AM Flag

    Lack of Interest?

    I�m confounded by the lack of interest in ENP.
    The company announced on March 17, 1999 that Q1
    earnings were expected to be better than the consensus
    estimate and the stock price is almost unchanged. During
    the same period, the overall energy sector and
    pipeline companies have shown some strength. In addition,
    telecommunication uses of ENP�s vast right of way have the
    potential to provide a substantial increase in total return
    for shareholders.

    The Zacks average analyst
    recommendation is 1.18 with 9 Strong Buy recommendations. The
    stock yields over 7.5% and the earnings growth rate is
    forecast to exceed 10% over the next five years. Once the
    momentum insanity in the overall market subsides and
    investors return to companies with tangible value, ENP will
    be one of the significant beneficiaries. IMO

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    • David Kiefer of Prudential Utility Fund was on CNNfn today to discuss his picks for utilities.
      He likes KMP

    • I'm new to this site so I have a few questions.
      Do you have any feeling for what is going on between
      KMI and Oneok as far as their negotiations? Rumors
      are that Oneok is buying a major chunk of the KMI
      pie. Such as all gathering and processing assets in
      Texas, Oklahoma, and Kansas plus the all the
      transmission assets in west Texas with the exception of the
      NGPL assets. Do you think either or both of these
      stocks would be a good buy at this time? I feel like KMI
      could reach $60 by end of 2nd Qtr if the divestitures
      are completed by the end of the 1st Qtr. This just a
      gut feeling, but I am going buy a little more KMI

    • Good question, unfused.

      Currently 29% of
      ENP's distributable cash flow goes to KMI (because of
      KMI's general partnership interest in ENP). On a going
      forward basis, 50% of every INCREMENTAL $1 of
      distributable cash flow will go to KMI. So, over time 29% will
      grow to 32% to 35%, etc. as ENP's distribution
      continues to grow.

      Expect Kinder to make
      acquisitions at the ENP level such that 50% of the associated
      cash flow hits the KMI income statement. This way, KMI
      puts up no capital and retains some of the income. The
      return is "infinite" to KMI shareholders. ALso, it is
      not bad for ENP shareholders as Kinder has proven
      time and again the deals he does at ENP are

      Look for some small terminal deals over the next
      couple of months, Exxon's piece of Plantation Pipeline
      company (probably $200M+) and some asset transfers
      (sales) from KMI to ENP. All of these deals will be
      accretive to both ENP and KMI holders.

      LH&C's decade
      of debt is an issue, but will be resolved over the
      next couple of years. With KMI merging with KNE,
      Kinder brought equity to the balance sheet such that
      debt to equity fell from low 70%'s to mid 60%'s. As
      asset sales are completed look for debt to back down to
      mid 50%'s over next 12-18 months and likely stabilize
      at roughly 50% level over next long term.

    • I have a question:

      How will KMI's earnings
      be affected by ENP's earnings? Many have noted how
      ENP is so well positioned..., how ENP is going to
      ship liquids out of Chicago..., how ENP is going to
      bring in the big bucks..., but they never say how all
      of this will affect KMI's bottom line?

      better yet, how will LH&C's decade of debt affect ENP's
      botom line???

      Will Mr. Kinder ever give us
      something to be thankful for????

    • enp has been making the charts and ahres hard steady this week

    • Last June I bought KNE at 13.50 after the deal
      with Sempra Energy fell through. Sold at 20.50 (too
      soon!). Now I have enough to buy back in, but I don't
      know which would be a better investment--KNE or ENP?
      Both are off their recent highs. If I buy ENP, which
      is probably going to be renamed KMI, will each 100
      shares of ENP become an equal amount of KMI? Thanks in

    • Jane-here is the link you referred

      It is real easy to copy and paste a link.Just put
      the cursor onthe Location[link]and click the mouse.It
      will turn blue.Then click on Edit and Copy.When you
      are ready to paste the link,go to Edit and

      Hope this helps.

      BTW this is an excellent
      interview and I recommend reading.


    • with richard kinder on cbs market watch
      yesterday, 9/16. go to news and click (i'd cut and paste it
      here but i'm new to the internet and skills are yet to
      be honed!) the interview answers many questions and
      underscores reasons to have confidence. good luck to you.

    • in terms of the quality of enp. it is a fine
      company with terrific returns combined with no fuss/muss
      when compared to the internets. i have owned my shares
      as a result of santa fe pacfic being bought out by
      enp, and i had the santa fe shares for years before
      the buyout. in addition, rick kinder seems to be very
      direct in his press releases and statements regarding
      the forward picture and we know this is not always
      the case when it comes to ceos/presidents. as far as
      kn is concerned, the corrective measures necessary
      to make it a financially stable contributing part of
      the whole are taking place now and, i believe, will
      be successful.

    • I'm a new holder of ENP and reacted to the info without the benefit of what you've told me.

      Looking forward to good things.


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