Losing billions and billions like it's monopoly money. Analyst downgrades surely coming over next week. Any downturn in oil/gas prices = back to $30s per share, maybe $20s if stock market overall tanks with slowing economy later in 2016.
KMI is purely a gamble on higher oil/gas prices at this stage. What will KMI price be if energy prices reverse to new lows this summer on global recession reality? Can they stay in business as currently configured if revenues and cash flows fall further?
Cash flow down
Earnings down sharply
Cutting CAPEX to save money
Cannot access debt market
Cannot afford current lowered Dividend unless oil market improves
Cannot afford $42 billion in debt unless oil market improves
Cannot afford to invest in growth opportunities without borrowing more (increasing leverage & risk) or diluting existing shareholders with new issuance
Otherwise we're firing on all cylinders?
Good enough for Wall Street bankers and buffaloed longs I guess
Using words like goal and will try to keep dividend at $0.50 annually not very reassuring. Company cannot pay dividend, high debt load and CAPEX at present levels. The areas to cut are CAPEX affecting future operations & cash flows and/or the dividend. KMI I has borrowed additional debt or diluted with share offerings at $3 billion annual rate last 3-4 years. Close to a PONZI scheme to stay in business? Much of current CAPEX is required spending to keep pipelines working. Getting harder to cut more. Dividend cut to zero may be next if oil/gas do not recover rest of year?
cash flow estimate now projected a good -5% for all of 2016 against last estimate in January. Cannot fund the projects it was hoping to build, with weak junk bond market... If they cannot dilute more with new debt and stock issues, basically cannot afford dividend for long either
Yahoo! been deleting my posts on report since 4:05 on company website. CANNOT fund current projects and dividend, cutting back $500 million minimum on CAPEX 2016
I fear KMI''s stock price action is a HUGE warning of #$%$ earnings and guidance in coming days. Gap back down at $15.50 needs to be filled also.
Hope longs are ready for reduced guidance closer to break-even "non GAAP" also. KMI will likely have write-downs that create $1 to $2 BILLION in GAAP losses for year.
Today's open will be a great time to sell longs in KMI. Don't miss it. You might not get many more opportunities on way to sub-$10 this summer?
Too much debt, too much hype from management, too many pipelines to keep fixing and upgrading each and every day. I don't see how this company can honestly pay ANY dividend and stay in business unless it borrows more and dilutes existing shareholders. PRAY FOR OIL REBOUND like Buffett I guess.