In short, Market will never again reward MLP structure. P/E multiples will be at best in 20 to 30, yes P/E will matter again, not DCF.
You get your vote I get mine. You don't know me, so why would you call me an idiot? Learn to accept other view points with out resorting to insults.
With todays action of slashing dividend they can pay down the debt. However they need discipline and not go on shopping spree or construction spree.
Blaming Saudi's is of no consequence. over borrowing to pay dividends was the management short coming. KMI will now be valued on their earnings, grow the earnings get rewarded. They will have to earn their multiple in future.
Don't even talk of credit downgrade, RK is smarter than that, what is so holy of the word dividend? Sell a few shares when you need cash, its better to be a growth company with higher multiple than be subject to credit rating agencies. So how accurate were their ratings when the put USA on credit watch, or when they rated subprime mortgage back securities as AAA. You only need to borrow when you cant pay for it, KMI can pay for its growth and operating expenses, its just the dividend they cant afford simultaneously.
No way if they stop diluting shares, taking on more debt. Proceed only with projects committed to, no dividend till at least 75% of current debt is paid off or buy back shares which ever appears more attractive.
They are not buying existing houses, they are building new houses that need investment upfront and have to wait for ROI. You are right it will take longer than 4 years even though the debt will reduce rapidly, however they wont have any unused capacity. They may even get a preferred rate. OK lets split the difference debt free in 6 years?. Just worried what to do at this stage.
More NG Power generating plants will be on line next year, also LNG exports will start. So next year volume should be better than 2015 and continue the trend.
Is there any way KMI can abandon all new projects that can delayed without penalty focus only on "debt free" in 4 years? I mean ZERO debt! Is that possible if NG @ say $2.50 ?
Just for your information many of us are in the top 20% but we don't buy the KOO -AID of Right Wing party that they care for us. We don't give them campaign contributions.
Right wing wants America to look at and evaluate everything except the obvious. Spend all your resources except do not enact sensible gun laws, wow what a bad solution.
Drugs aggravate the problem TRUE, but Automatic Guns and lack of sensible gun laws are the problem. Sensible Gun laws WILL reduce guns in wrong hand, both criminals and those with mental problems. Sensible gun laws will also help guns being accepted by the society for their intended purpose, sport and self protection.
How do you plan to weed out drug users? Don't just post an absurd remedy and absolve guns from the equation. Even registration, psychiatric evaluation, clips that can hold multiple rounds, preventing guns in public arena the list of all sensible ways to stop mayhem is opposed by one party, lets work on something that is achievable, support those who will vote for sensible gun laws without stepping on 2nd Amendment.
So why do we need police force? Only criminals will get guns really? Mandatory 10 year sentence if you are caught having a Gun without permit, allow registration of existing guns for a year, will resolve that issue. Biometric for owners of guns so that only legitimate owner can use. Use technology to determine gun operated in a crime scene. Its nonsense to say only criminals will have guns. And a poor excuse for not wanting registration.
Do you understand 1% means 1 in a 100, so if there are 340 Million people in USA, we can only have 3.40 Million people in 1%. So how can you have lot more people in 1%, or it will become more than 1%? No wonder you believe in the VOODOO economics. Giving tax breaks to the wealthy will not lift any more boats. Actually giving tax breaks to the bottom 50% TAX PAYERS will lift most boats.