Fri, Nov 21, 2014, 7:12 AM EST - U.S. Markets open in 2 hrs 18 mins

Recent

% | $
Quotes you view appear here for quick access.

Kinder Morgan Energy Partners, L.P. Message Board

clydorn 43 posts  |  Last Activity: Nov 18, 2014 4:38 PM Member since: Jun 24, 2004
SortNewest  |  Oldest  |  Highest Rated Expand all messages
  • Reply to

    When we convert...

    by tacyos975 Nov 18, 2014 1:40 PM
    clydorn clydorn Nov 18, 2014 4:38 PM Flag

    Yes, the market sets the price which will flucuate according to demand, as you know. The conversion merely gives you 2.4849 shares of KMI per each KMR share.

  • clydorn clydorn Nov 17, 2014 12:44 AM Flag

    It is expected to be 11/26 as per the following KM release:

    "The closing of each merger is expected to occur on Nov. 26, 2014. Accordingly, it is expected that Nov. 26 will be the last trading day for KMP and EPB units as well as Kinder Morgan Management, LLC (NYSE:KMR) shares"

    Last closing of KMI on Friday was $39.37 which would equate to a KMR conversion price of $97.83. It all depends on what you think the price of KMI will be on the conversion date, or thereafter. Of course if KMR were to dip significantly then it would be an opportunity to buy KMR as long as KMI doesn't fall an equivalent value.

    Decisions, decisions?? good luck.

  • Reply to

    Price

    by brutus1845 Nov 14, 2014 1:53 PM
    clydorn clydorn Nov 14, 2014 3:35 PM Flag

    yeah, like getting a 3 dividend bonus, but it will probably go down tomorrow with some profit taking. I think a lot of KMP owners are still trying to decide whether to sell, or ride it out thru the conversion.

    I really only care about the price of KMI at conversion date as that will be my new holding & the more it goes up the more value we get.

    Sentiment: Hold

  • Reply to

    Nov. 26 is the date

    by annmarshaway Nov 14, 2014 9:41 AM
    clydorn clydorn Nov 14, 2014 2:18 PM Flag

    Yup, last day to trade KMP, KMR, or EPB units will be 11/26/2014.

    Also will miss KMR, but this conversion has been very profitable for us long term KMR holders. I wanted to sell my KMR when it hit $101, but the tax bite would have been too big. I will be happy with paying the tax on my KMI dividends though. Oh how I wish I would have put my KMR into my IRA's instead of a traditional brokerage acct. Oh well, 6 of one, half dozen of another, reasons for doing something.

    good luck to all KMR holders after the conversion.

    Sentiment: Hold

  • Reply to

    Price

    by brutus1845 Nov 14, 2014 1:53 PM
    clydorn clydorn Nov 14, 2014 2:08 PM Flag

    Maybe it has something to do with KM's recent SEC filing:

    "The closing of each merger is expected to occur on Nov. 26, 2014. Accordingly, it is expected that Nov. 26 will be the last trading day for KMP and EPB units as well as Kinder Morgan Management, LLC (NYSE:KMR) shares."

    I am just hoping that KMI holds steady, or goes up after the conversion.

    Sentiment: Hold

  • Reply to

    CONSOLIDATION DATE

    by holew Nov 10, 2014 1:16 PM
    clydorn clydorn Nov 10, 2014 10:13 PM Flag

    They expect it to be done by Thanksgiving, assuming the vote approves it. I am looking forward to owning my KMI shares by Dec. I would have preferred to keep my KMR units & its' tax free status, but I will be happy with the very generous, & growing, KMI dividend. As my KMR cost basis is quite low, I will be enjoying a high yield on the KMI dividends. Even though I will have to pay taxes on the dividends, I am now in my retirement "show me the money stage" & will enjoy the cash vs. the KMR stock dividends. Oh money....how shall I spend thee? Hope the conversion works out for all.

  • Reply to

    TURBO TAX

    by sara123049 Nov 7, 2014 2:07 PM
    clydorn clydorn Nov 8, 2014 12:34 AM Flag

    Sara: you might want to download the recent Kindermorgan sec filing titled "KMP / EPB Summary
    Tax Information Package"; as it has K-1 information/entries relative to the merger of KMP & EPB unit holders with KMI. I could no longer find it in the KM list of SEC Filings, but was able to find it via a google search under: "KMP / EPB Summary Tax Information Package".

    KMP shareholders should find this very helpful as it is pertinent to the 2014 tax filing.

    Sentiment: Hold

  • Reply to

    TURBO TAX

    by sara123049 Nov 7, 2014 2:07 PM
    clydorn clydorn Nov 7, 2014 3:18 PM Flag

    Go to the Kindermorgan website, select Investor Relations, select KMP & then select K-1 information. Look this page over & see if it answers your concerns. You are able to download K-1 info directely to Turbo Tax if you do not decide to enter it directly yourself from the K-1, or you can follow the Turbo Tax Interview Process as it guides you thru the step by step process of entering K-1 info.

    Turbo Tax works great & I have used it to do numerous K-1 entries, but have never tried the download option. You will probably need the Turbo Tax Premier Program as a minimum.

    Turbo Tax does everything you asked about for the tax year the program addresses. You may have to provide past K-1 information as tax year 2014 represents a total sale of the KMP partnership. So previous year K-1 info, especially previous passive losses that might not have been used, might have to be added to cut your current year tax.

    If this is your 1st tax year in which you have owned an MLP then it should cover everything on the 2014 K-1; however if you have previous year KMP K-1's then you may have to have that info available to enter into Turbo Tax. Good luck.

    Sentiment: Hold

  • clydorn clydorn Nov 5, 2014 10:46 PM Flag

    One of the options available to KMP unit holders is to select the all-stock option for conversion of KMP to KMI. Such an option offers you 2.4849 shares of KMI stock for every KMP unit converted.

    You then must look at your total investment return. As my cost basis is quite low & I am converting to KMI stock my actual KMI return on initial investment, for year 2015, comes out to 10.8% for each share of KMI received. And it will increase every year for the next 6 years as the dividend rises to $3.22 per share.

    Taxes will not be as high as many expect & the $10.77 cash to be received, with one of the options, is expected to cover any tax cost.

    Every persons situation is different & we all have different goals/preferences, thus all conversion options need to be analyzed before making a decision.

    Good luck on your decision.

  • Reply to

    merger

    by rjraecek Nov 3, 2014 1:06 PM
    clydorn clydorn Nov 5, 2014 10:26 PM Flag

    Of course there is a chance that KMI can drop after the acquisition/merger, however various analyst price targets range from mid $40's to $50. Also the 2015 KMI dividend will be $2.00 per share with annual 10% dividend increases, already announced, thru 2020. This means we are looking at a 2020 annual dividend of $3.32. This in itself should keep the stock price stable & moving up. Also, KMI has recently undertaken numerous business deals expected to be accretive to earnings & look to continue its' growth after the merger.

    I am looking, for myself for a good 6 year growth stock & hopefully beyond. Of course everyone should do their own due diligence & watch all of their stocks like a mother hen, lest you become like the best of breed buggy whip, or typewritter shareholders of the past.

    Sentiment: Hold

  • Reply to

    merger

    by rjraecek Nov 3, 2014 1:06 PM
    clydorn clydorn Nov 5, 2014 10:17 PM Flag

    The following info is quoted from the KMI Acquisition Transaction Information Release & should answer your question.

    "Q: What are the expected U.S. federal income tax consequences resulting from the mergers?
    A: Consequences will be different for each holder due to a number of factors, including whether the holder owns KMP or EPB units or KMR shares, generally characterized as follows:

    • KMP and EPB — the receipt of KMI common stock, cash or a combination of KMI common stock and cash in exchange for KMP and EPB units pursuant to the mergers will be a taxable transaction to U.S. holders for U.S. federal income tax purposes. A U.S. holder will generally recognize capital gain or loss on the receipt of KMI common stock and / or cash in exchange for units. However, a portion of this gain or loss will be separately computed and taxed as ordinary income or loss. Passive losses that were not deductible by a U.S. holder in prior taxable periods may become available to offset a portion of the gain recognized by such U.S. holder. Consult your tax advisor for more information."

    Hope this helps, The conversion vote is on 11/20 and acquisition is expected to be completed by Thanksgiving. Everything apears to be moving forward expeditiously & smoothly. Hope to be a happy KMI share holder by December.

    Sentiment: Hold

  • Reply to

    merger

    by rjraecek Nov 3, 2014 1:06 PM
    clydorn clydorn Nov 4, 2014 8:59 PM Flag

    Geez Louise, doesn't anybody read the KM Press Releases? Following is a quote from the "KMI Acquisition of KMP, KMR and EPB
    Transaction Information" as it pertains to KMP:

    Q: What consideration will I receive for my KMP units, KMR shares or EPB units?
    A: Holders of KMP ..... will have the right to receive the following consideration for every unit or share owned at the effective time of the mergers:

    • KMP — the holder may elect one of the following consideration options (subject to proration):
    (i): all-stock - 2.4849 shares of KMI common stock,
    (ii) all-cash - $91.72 in cash without interest, or
    (iii) mixed - a combination of 2.1931 shares of KMI common stock and $10.77 in cash without
    interest. Holders who elect to receive the mixed consideration will not be subject to proration.

    Hope this helps, don't know when KMP holders will be able to exercise their option as I am a KMR holder, but should have been in the merger proposal info sent out.

    Sentiment: Hold

  • Reply to

    The 10.77

    by gqgerb Oct 27, 2014 3:18 PM
    clydorn clydorn Nov 1, 2014 1:20 PM Flag

    You got it right, KMI Aquisition info has stated that the purpose of the cash addition to KMP conversion holders was to cover any expected tax amount due.

  • Reply to

    VOTE NO

    by fredmertz999 Oct 30, 2014 8:47 AM
    clydorn clydorn Nov 1, 2014 12:15 AM Flag

    Now your talking, sell & take your profit from owning KMP & reinvest. Thats the name of the game.

    Sentiment: Hold

  • Reply to

    VOTE NO

    by fredmertz999 Oct 30, 2014 8:47 AM
    clydorn clydorn Nov 1, 2014 12:11 AM Flag

    You will get the 4th quarter distribution, it will just be the KMI dividend instead. Sell now if you don't want to convert.

    Sentiment: Hold

  • Reply to

    The 10.77

    by gqgerb Oct 27, 2014 3:18 PM
    clydorn clydorn Oct 28, 2014 6:24 PM Flag

    Well, guess that if you don't know what the conversion payment options are then, in your own words, you "should not be in the equities market, period."

  • Reply to

    mlp mutual funds

    by averyed510 Oct 18, 2014 7:57 AM
    clydorn clydorn Oct 20, 2014 6:25 PM Flag

    Mutual Funds were allowed to own MLP's in 2004. They usually send out 1099's for investors with income & capital gains reporting in Nov, but K-1's for MLP holders usually don't come out till Feb.

  • Reply to

    How many shares after merger?

    by tesketax Oct 16, 2014 1:04 PM
    clydorn clydorn Oct 20, 2014 4:47 PM Flag

    Yes, the conversion of 100 KMP shares you will have 219.31 shares of KMI & $1077 cash unless you elect to receive all shares or all cash.

  • Reply to

    How many shares after merger?

    by tesketax Oct 16, 2014 1:04 PM
    clydorn clydorn Oct 17, 2014 10:45 PM Flag

    Glad it helped & nice move on the 84.96 price. That gives you a KMI conversion cost of $34.19 per share cost. That looks very good going forward.

    I think that after the conversion & when the dust settles, & portfolios realigned, that KMI will do very well going forward for the next 5 years. Good luck.

    Sentiment: Hold

  • Reply to

    How many shares after merger?

    by tesketax Oct 16, 2014 1:04 PM
    clydorn clydorn Oct 17, 2014 4:19 PM Flag

    There is a list of SEC Filings on the KM website I think that are dated 09/25/2014, Go to the KM website, click on investors, choose KMI & select SEC Filings. There are several that have important KMI Conversion Info.

    One such, titled: "KMI Acquisition of KMP, KMR and EPB
    Transaction Information" states the following:

    "(a) Subject to proration, KMP and EPB unitholders will have the option to elect all-cash consideration of $91.72 per KMP unit and $39.53 per EPB unit, or all-stock consideration of 2.4849 KMI shares per KMP unit and 1.0711 KMI shares per EPB unit."

    In the Q&A section the following is provided:
    Q: What consideration will I receive for my KMP units, KMR shares or EPB units?
    A: Holders of KMP, KMR, or EPB will have the right to receive the following consideration for every unit or
    share owned at the effective time of the mergers:

    • KMP — the holder may elect one of the following consideration options (subject to proration):
    (i): all-stock - 2.4849 shares of KMI common stock,
    (ii) all-cash - $91.72 in cash without interest, or
    (iii) mixed - a combination of 2.1931 shares of KMI common stock and $10.77 in cash without
    interest. Holders who elect to receive the mixed consideration will not be subject to
    proration.
    • KMR — 2.4849 shares of KMI common stock.

    • EPB — the holder may elect one of the following consideration options (subject to proration): (i) all-stock - 1.0711 shares of KMI common stock, (ii) all-cash - $39.53 in cash without interest, or (iii) mixed - a combination of 0.9451 of a share of KMI common stock and $4.65 in cash without interest. Holders who elect to receive the mixed consideration will not be subject to proration"

    Hope that helps as it does give the KMP share holder several options to contemplate. Good luck.

    Sentiment: Hold

KMP
97.90-1.86(-1.86%)Nov 20 4:03 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Splunk, Inc.
NasdaqGSThu, Nov 20, 2014 4:00 PM EST
Foot Locker, Inc.
NYSEThu, Nov 20, 2014 4:02 PM EST
GameStop Corp.
NYSEThu, Nov 20, 2014 4:00 PM EST