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