The following is a press release from Fitch Ratings:
Fitch Ratings-New York-19 February 2014: Fitch Ratings has assigned a 'BBB' rating to Kinder Morgan Energy Partners, L.P.'s (KMP) proposed senior notes issuance. The Rating Outlook is Stable. Net proceeds from the offering will be used to repay commercial paper (CP) and for general corporate purposes. KMP's total debt including commercial paper and consolidated subsidiary debt at YE 2013 was $19.9 billion.
KEY RATING DRIVERS
Rating Rationale: KMP's rating and Stable Outlook reflect the significant and growing scale and scope of operations; geographic and functional diversity of assets; successful track record in acquiring, expanding, financing and operating energy operations; and predictable earnings and cash flow generated from natural gas and refined products pipelines. The rating also considers Fitch's expectation for stable credit metrics in 2014 with adjusted debt to EBITDA to approximate 4.0x or below for the year. Moreover, recent large acquisitions have been funded in a credit-neutral manner. KMP raised $2.3 billion in new equity in 2013, excluding equity issued as part of its unit-for unit-purchase of Copano Energy L.L.C. (CPNO). Recent dropdown acquisitions, Tennessee Gas Pipeline Co. (TGP) and El Paso Natural Gas Co. (EPNG) generate stable cash flows and, along with CPNO's midstream operations, have been good fits with KMP's master limited partnership (MLP) structure. Approximately 80% of KMP's cash flows are expected to be generated under long-term fee-based or similar arrangements.
KMP remains an active acquirer: On May 1, 2013, KMP completed its purchase of CPNO for a total purchase price of approximately $5.2 billion, including assumed debt. The transaction was a 100% unit-for-unit transaction. CPNO is a midstream natural gas company with operations primarily located in Texas, Oklahoma, and Wyoming. Kinder Morgan, Inc. (KMI; Fitch IDR of 'BB+'), owner of KMP's general partner, has agreed to forego a portion of its incentive distributions related to this and other prior transactions. On Jan. 17, 2014, KMP closed its purchase of American Petroleum Tankers (APT) and State Class Tankers (SCT) for $962 million in cash. APT and SCT are engaged in the marine transportation of crude oil, condensate, and refined products in the U.S. domestic trade, commonly referred to as Jones Act trade. APT's fleet includes five Jones Act qualified tankers with 330,000 Bbls of capacity each under contract for an average remaining term of four years. SCT has commissioned the construction of four additional Jones Act qualified tankers to be delivered in 2015-2016. Upon delivery these tankers have contracts with an initial term of five years. KMI has agreed to waive incentive distributions amounting to $13 million in 2014, $19 million 2015, and $6 million in 2016 to facilitate the transaction.
Other considerations and credit concerns include KMI's control over KMP; exposure to interest rates on approximately $5.7 billion of variable rate debt; modestly negative effects of a weak U.S. economy on asset utilization; regulatory challenges and potential refunds relating to KMP's Pacific products pipelines; aggressive expansion spending; and exposure to changes in natural gas liquids (NGLs) and oil prices and volumes for its CO2 and midstream business segments. The financial impact of commodity price volatility is minimized through hedges which have been applied to approximately 71% of the company's expected 2014 net oil production of approximately 38 thousand barrels per day.
They just get repeated because volatility is funds friend and people do not understand dcf. Cash flow is fine! Distribution is safe. Insider buys AT MUCH HIGHER PRICE! THIS IS A STEAL. SEE YOU IN APRIL-I WILL BE THE RICHER ONE!
Richard Kinder is a buyer of shares so how bad could this company really be. Otherwise wouldn't he just wait for shares to come to him.
Anyone who has been doing business with George Sorros for 25 years is a liberal. Think President Obama. Therefore they lie cheat and steal if necessary to make their points in business or government. Truth will rise to the top. I am staying long KMP and USA!
After completing projects next year and they raise distributions who will be glad they scoffed up shares here? L and me!
Tell you this. Richard Kinder bought 828,000 shares in DEC. This could be a buying opportunity before next distribution. Sorry I could only buy 1500 shares today.
A little fine bourbon on the rocks??? Makers Mark!
SEP has huge growth coming in 14 and 15! See research post on SEP board. Long KMP SEP EPD. Also nice growth and proven earnings record at ESV. Nice dividend - 75cents too- not a distribution but I hold in IRA. Good luck to all longs. .
Eps-cfy12% eps-nfy 32% rev. Growth cfy 196% rev. Growth nfy 227% this is a no brainer ! buy now reap rewards! numbers found on scottrade research- no skin in the game!
Earnings and Dividends
EPS Growth CFY*
EPS Growth NFY*
Revenue Growth CFY*
Revenue Growth NFY*
Dividend Growth 5 Year
Last QTR Dividend
Spectra Energy Partners, LP
12.43% 32.11% 196.81% 227.19% 45.11% 4.89% $2.07 $0.52
Ares Commercial Real Estate Corp
2,025.00% 48.24% 306.56% 72.55% -- 7.46% $1.00 $0.25
Monroe Capital Corp
673.33% 14.66% 908.26% 61.55% -- 11.03% $1.36 $0.34
Hi-Crush Partners LP
30.00% 25.96% 69.96% 46.24% -- 5.62% $1.96 $0.49
Mid-America Apartment Communities Inc
31.28% -23.83% 26.81% 42.64% 1.94% 4.75% $2.92 $0.73
Home Loan Servicing Solutions Ltd
23.08% 6.77% 442.81% 34.37% -- 7.94% $1.80 $0.15
Retail Opportunity Investments Corp
220.00% -41.67% 41.78% 24.80% -- 4.12% $0.60 $0.15
Medical Properties Trust, Inc.
11.94% 13.33% 21.67% 24.50% -5.83% 6.73% $0.84 $0.21
PDL BioPharma Inc.
22.07% 20.34% 17.17% 22.86% -- 6.83% $0.60 $0.15
50.00% 33.33% 33.22% 22.54% -8.73% 8.53% $1.14 $0.10
31.02% 27.92% 16.11% 21.31% -- 9.50% $3.80 $0.95
Stellus Capital Investment Corp
570.00% 5.22% 696.73% 17.38% -- 9.22% $1.36 $0.34
Capital Product Partners L.P.
41.18% 66.67% 14.07% 16.18% 4.40% 9.18% $0.93 $0.23
Giant Interactive Group Inc (ADR)
14.63% 6.38% 12.37% 15.21% -- 6.02% $0.65 $0.23
Exterran Partners, L.P.
51.19% 0.00% 19.60% 14.39% 7.70% 7.27% $2.11 $0.53
Compare up to five selected companies
Price data as of close, January 13, 2014
* CFY = Current Fiscal Year, NFY = Next Fiscal Year
Screen Saved as:
Ways to Fund
Website Terms & Conditions
Agreements & Disclosures
The performance data quoted represents past performance. Past performance does not guarantee future results. The research, tools, and information provided will not include every security available to the public. Although the sources of the research tools provided on this website are believed to be reliable, Scottrade makes no warranty with respect to the contents, accuracy, completeness, timeliness, suitability, or reliability of the information. Information on this website is for informational use only and should not be considered investment advice or recommendation to invest.
I say it's a huge buy! Came up as # 1 on my research at Scottrade for growth in rev. and earnings. this is manipulation. Yellen isn't going to shock the nation with huge taper and growing interest rates. PS Bank of Eng. kept rates the same yesterday1/2 %.