"Personally, I see little hope for gas above $4 for the rest of the year, so look for a minimal dividend increase by year end."
a hard early winter could change things on a dime ... we may be near the lows of the year, although I'm not strinngly bullish for natgas for rest of year, I'd expect it to regain the 4s.
thanks, I also found this:
"Kinder Morgan Details Expansion Plans on EPNG to Export Natural Gas to Mexico"
HOUSTON--(BUSINESS WIRE)--Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that El Paso Natural Gas Company (EPNG) has entered into a 21-year firm transportation agreement with Mexico’s Comisión Federal de Electricidad (CFE) to initially provide approximately 163,000 dekatherms per day (Dth/d) of firm transportation capacity by October 2014, ramping up to 200,000 Dth/d by October 2017 and 550,000 Dth/d by October 2020. The phased capacity increases will be accomplished using existing and expansion capacity on the EPNG system. As previously announced, capital expenditures are estimated at approximately $529 million.
“This firm transportation agreement will help CFE to realize its goal of converting numerous fuel oil-powered generation plants throughout Mexico to natural gas, as well as provide transportation for a number of new gas-fired plants currently under development”
Engineering and procurement activities have begun on the first phase of work, which involves system improvements to deliver volumes to the Sierrita Pipeline near Tucson by October 2014. The second phase will result in incremental deliveries of natural gas to the Sierrita Pipeline and to California, and is expected to be completed by October 2020. The Sierrita Pipeline is expected to be in service in September of this year.
don't fall for that piece by RJ, its pure pump\dump and wrong. unless something fundamental changes LNCO will not trade at a premium to line.
tell that to a KMP investor and they will slap you in the face ....
its ordinary income with taxes deferred, just like phil said.
unless there is a company discount sponsored drip, you can easily outperform an auto drip. stock broker drips is just plain being lazy.
eventually kmi could end up performing similar to some of the old very large cap oil stocks. But thats a long ways away. First you have to get past the stepped up basis depreciation, which is at least 5 years away. Second KMI is mostly domestic where the growth is exploding, while exxon is global.
Finally exxon although integrated, is really about producing energy, KMI is about transporting energy.
Either way looks good for at least 5 years, just watch for signs that the projected div coverage is struggling.
what if one sold KMP now and moved it into KMR to hold for the kmi exchange is there any benefit tax wise or otherwise ?
its sad to see someone so dumb and blind especially one thats supposed to be smart. The NE is one of the last places in the US which is ijmporting LNG and the highest energy costs. Maybe shes still using OIL to heat her home :)
getting tax raped so others can live on welfare and bomb the rest of the world is patriotic ? NOT
ahhh but he specifically said "reinvest the funds .... for a very long period of time" meaning he was not looking for immediate income BUT a reinvestment vehicle .... drip drip drip ... get it ? thats why i asked. I sympathize with those that are in KMP for the monthly income, Its a big tax hit. But still the taxes would be due sometime unless you died first, and you still had the kMR option.
I am also dissapointed in losing the tax advantaged PIK dividends from KMR. However I believe that richard kinder wants to grow and will be successfull, so I'm ok with tradeing off some of the KMR benefits for straight growth in KMI. Just watch out if in the future Kinder is unable to continue growing and rasing dividends after this deal is done.
I'll be using hedging+options to make up for the lower income expected after the deal concludes.
actually comparing KMR before and after I am losing around 3 points in PIK divs.
if the div rate for KMI does go up by 2 points, meaning over 6% then I'm only losing a point or two.
friggin dumbos 10% on ~4% is only in the 4s, 6% on 7% is in the 7s. At that rate it will take more than a couple of years to get back to a 7+% div rate. geeez
dude don't try and spin numbers on me. KMI is in the 4% div range as qualified divs, and KMR is in the 7% ramge as ltcg after is all said and done you will end up owning KMI in that same 4% range until they raise the div rate.
Didn't you learn anybout about % in high school ?
not after the fact. I have been building positions in KMR since 2008 and more recently in KMI during its recent lows, and have disclosed my opinion on these same message boards for a few years. The BEST information AT the time told me to BUY KMR instead of KMP because of a higher total ROI and lower total net taxes.