talking about KMI compared to LINE, KMI has 5 times free cash flow and more than 3x earnings let alone their operational differences...
LINE explores for oil and gas.. KMI transports it and locks in their transport agreements years at a time... their oil is a fraction of their total revenues. and even in one of the worst times of oil in 10 years... KMI still has solid revenues
that was before SOX and other regulations to prevent such things from happening... not saying that there are no possibilities of what you are saying to be correct... but what I think you meant is selling calls knowing the stock would fall... but regardless, I think the issue with Kinder is that he collects dividend income and owns a large % of the shares.
moreso than people expected but if customers are lessened then it would affect the user base of the pipeline toll system... its this and the interest rate hike... making the dividends a little less valuable as a result causing a further selloff... additionally the leverage and price environment, its painful... is the game over? I doubt it... the odds of that happening are close to nil... but it is certainly not a fun time for investors.... kind of like when chevron went to 75
The arguments that KMI is value-less or useless or the Enron throw-down is a scare tactic and doesn't hold value...
With our country using 30+% natural gas fired power gen and forecasted to rise and the need consistently rising as demand grows (slowly but surely) and coal retirements continuing.... and NG fired gen is much more reliable then power gen. People need to stop trying to scare people....
1) Investment grade at risk
2) Cost of business going up
3) commodity prices down
4) leverage growing and dividend rate highly unsustainable given current prices of NG and OIL etc.
5) Management communication to investors should be clearer with how they plan to maintain the investment grade rating
6) Dividend should be cut in half to stem the bleeding and probably will.
7) The sell-off is pricing in interest rate hikes and a dividend scale back... The two combined are creating a massive selloff in interest yielding securities... and it is quite clear.
this is pure idiocy.. Kinder Morgan has a vital infrastructure with the largest reach for natural gas transportation in a nation that is 30+% natural gas fired electric generation and forecasted to rise as it burns cleaner than coal and is more viable and reliable then renewables
And he did work for enron and so did a lot of other people... but he build Kinder morgan with a track record of getting projects done and being the best in Natural gas transport.
while you make points on some other stocks... throwing BP and EOG is a fallacy... BP paid 10s of billions into settlements for the oil spill... and EOG is a mother-fracker... now KMI is a bit of a different case and has been sold off (along with all other MLPs) drastically... KMI also has the largest network and natural gas pipeline infrastructure in north america... with coal retirements to continue and natural gas fired power forecasted to grow along with renewables... and NG fired plants currently sitting at around 30% of the electric generation in the country... this country does actually need KMI....
Guess who BP EOG and most other ship their gas on? KMI and other cos like Energy Transfer... williams, etc.
KMI is being oversold because their investment grade rating is at risk and it makes sense for them to keep it because cost of doing business could rise if it were taken away... now the real story here is leverage and cash flow... if KMI got rid of their dividend altogether they'd pay a lot of debt down through their current cash flows albeit less than 2 years ago with higher oil prices... but moot point in this environment.
It is what it is, KMI has options, but they are limited given this environment.... but make no mistake.. Despite Rich Kinder having worked for Enron (along with many others in this industry) this has nothing to do with it.... they have build one of the most if not the most vital natural gas infrastructure in the nation.
It is a problem with tempering expectations and slowing down that is hurting KMI.... but anyone who is spurting out nonsense has no idea how vital KMI is to this nation's current energy infrastructure.