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Mike I had the boat loaded with THLD and Im riding it like a ca surfer right now...hope you had a piece of it
Short and sweet info on revenue and margins.
Revenue details
Kinder Morgan Energy Partners reported revenue of $2.0 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $2.4 billion. Sales were 4.0% higher than the prior-year quarter’s $1.9 billion
Margin details
For the quarter, gross margin was 45.2%, 200 basis points better than the prior-year quarter. Operating margin was 26.1%, 160 basis points better than the prior-year quarter. Net margin was 23.7%, 250 basis points better than the prior-year quarter.
Hey Bioman do you remember me? I got slaughtered in the lame other stock a while back. I'm doing real well now with the one i've been buying and I think it's just the tip of the iceberg. Can you look at LFVN for me and let me know what you think. Exponetial growth and huge quarterly revenue growth can't be ignored.
looks like we are bouncing off the ceiling here IMO
By Jason Stevens
The merger of Kinder Morgan Inc. (KMI) and El Paso (EP) will work out very well for their shareholders as well as those holding Kinder Morgan Energy Partners (KMP) and Kinder Morgan Management (KMR), in our view. Prospects are somewhat less rosy for unitholders of El Paso Pipeline Partners (EPB), as the partnership will no longer be the sole recipient of asset drop-downs from El Paso.
Investing in EP, KMI, and KMR are the best ways to play the deal, in our opinion. Our merger-case valuation for KMI implies a $30 per share value for EP, or 19% upside to current prices. KMI is trading 15% below our merger case currently. We think this deal may help KMR close its discount to KMP, suggesting 7% upside.
The Midstream Two-Step
We've seen this playbook demonstrated twice, with Energy Transfer Equity's (ETE) bid for Southern Union (SUG) and now with Kinder's purchase of El Paso. Step 1: A general partner buys a C corporation with lots of pipeline assets. Step 2: The general partner sells the assets to its controlled master limited partnerships, realizing three distinct benefits.First, the drop-downs move the pipelines to a more tax-efficient structure at the MLPs, in effect securing a higher multiple on future cash flows for the assets. Drop-downs are priced at a level that guarantees cash flow accretion for the MLPs, enabling the MLPs to raise distributions at a faster rate. The general partner benefits directly from increased distributions on the limited partner units it owns and from increased incentive distributions.
Second, to finance the drop-down, the MLPs come to market and raise fresh debt and equity, typically in roughly equal measure. For a $1.0 billion drop-down, the MLP typically raises $500 million in new equity. The increase in units outstanding at the MLP elevates the general partner's incentive distributions, which are calculated based on the total dollar value of distributions paid to limited partners.
Third, the general partner takes the proceeds from the asset sale and pays down its acquisition debt, with a goal of holding zero parent-level debt upon completion of asset drop-downs. The math works as long as a general partner doesn't pay more for assets than it can charge its MLP and still have the drop-down be cash flow accretive.
Kinder Morgan's Bid and Valuation
The accounting for the deal is complex, as there are five publicly traded entities involved, and our final valuations are based on path-dependent assumptions. The size, pace, and pricing of asset drop-downs, and the share of assets sold down to KMP versus EPB, can greatly affect the valuations of not only KMP and EPB, but also KMI. The reason these assumptions are critical has to do with KMI's ownership of limited and general partner interests in each MLP, which affords KMI significant cash distributions. As assets are dropped down to either KMP or EPB, the MLP will finance the deal with both debt and equity (we assume a 50/50 split). Drop-downs have two effects on the MLPs. First, drop-downs increase distributable cash flow (based on our assumed transaction prices, which keep drop-downs accretive to distributions for both KMP and EPB), which allows the MLPs to raise distributions at a faster rate than otherwise possible, increasing KMI's cash inflows from distributions. Second, the new equity issuance required to finance transactions also increases KMI's cash inflows, thanks to incentive distributions that are based on the total cash payout of each MLP. As the size of the payout (limited partner units times declared distribution) increases, so does the size of incentive distributions.
The merger math for this deal is premised on drop-downs. We think KMI is worth $34 per share in our base merger case, versus our $28 predeal fair value estimate. However, if we were to assume that KMI does not drop down El Paso's assets to the MLPs and instead keeps them at the KMI level indefinitely, our valuation would decline to $26, unless we factor in aggressive cost savings. Similarly, drop-downs account for $8 of the $9 per unit fair value increase for KMP (and KMR), to $75. Were KMI to drop 100% of El Paso's pipes down to KMP, our fair value estimates would increase to $80 for KMP and KMR.
Our $34 per share base merger case valuation of KMI implies a $30 value for El Paso, higher than the $27 valuation based on the predeal stock price of KMI. We think the upside potential in owning KMI shares argues strongly in favor of the stock consideration option for El Paso's shareholders. Under the terms of the deal, for each El Paso share, shareholders can opt to receive either (a) $25.91 in cash, (b) 0.9635 share of KMI, or (c) $14.65 in cash and 0.4187 KMI share (regardless of election, all EP shareholders will also receive 0.64 warrant for each EP share owned, worth $0.96 per EP share). Based on our fair value estimate for KMI, we think options (b) and (c) are superior to cash, worth $34 and $30 per share, respectively. However, investors' election will be prorated, and based on the numbers provided by Kinder Morgan, it looks as if the company anticipates roughly 40% of EP shares being redeemed for cash, 30% for KMI stock, and 30% for cash and stock.
We assign an 80% chance the merger will go through, though we see little reason to believe it won't. Taking our merger odds into account, our fair value estimates are $33 per share for KMI, $73 per unit for KMP, $73 per share for KMR, $28 per share for EP, and $34 per unit for EPB. Should the merger not go through, our stand-alone fair value estimate for El Paso would drop to $21. Our El Paso valuation includes an estimated $8.1 billion enterprise value for the company's E&P operations; if the sale proceeds of El Paso's E&P assets are materially different, it would affect our fair value estimates for each stock. We figure that a $1 billion higher or lower sale price would add or subtract roughly $0.80 per share from our KMI fair value. Our valuation ignores potential pipeline asset sales for regulatory or antitrust compliance. In the event of a forced divestiture, KMP and/or EPB would see lower drop-downs, which would reduce, at the margin, KMI's cash flows from distributions. By our estimates, a $1.0 billion asset sale would reduce our fair value estimates for KMP by $1 per unit, EPB by $0.50 per unit, KMI by $2 per share, and EP by $1 per share.
Widening a Moat
The combined Kinder Morgan-El Paso entity will be a very attractive, wide-moat pipeline franchise. While we already had rated KMI and KMP as having wide economic moats, we have expressed concerns that the companies' exposure to commodity prices through their carbon dioxide segments detracted from an otherwise highly predictable cash flow profile. After all, Kinder Morgan is among the top five oil producers in Texas, a fact many midstream investors overlook. While the carbon dioxide segment currently accounts for roughly 28% of earnings before interest, taxes, depreciation, and amortization, the merger with El Paso will downshift this to 17%, and only 12% directly tied to oil production. El Paso's pipelines have a very high percentage of reservation fee revenue and long-term contracts, and the addition of this cash flow will shift Kinder's overall cash flow profile to 85% fee-based, by our estimates.
The pipelines are also regulated, interstate lines. Competing pipes will not be approved unless there's a demonstrated need, and odds are good that Kinder would add compression or loop existing lines long before another pipeline could get approval. The addition of El Paso's assets also extends Kinder's footprint across the continent, reaching every major market and producing region. We suspect that if anyone knows how to take advantage of such a pipeline network, it is CEO Rich Kinder.
Disclosure: Morningstar licenses its indexes to certain ETF and ETN providers, including BlackRock, Invesco, Merrill Lynch, Northern Trust, and Scottrade for use in exchange-traded funds and notes. These ETFs and ETNs are not sponsored, issued, or sold by Morningstar. Morningstar does not make any representation regarding the advisability of investing in ETFs or ETNs that are based on Morningstar indexes.
I'll do so now. ;)
In Reply to 'biomanbaba'
Add me as a AM here......want to make sure people who look me up stop by here........regards
Add me as a AM here......want to make sure people who look me up stop by here........regards
the ROCK of my portfolio..........dividends buy me biotech so I can have excitement...Im fine
Thanks for your input bio... This is a great run company.
Hope all is well. ;)
KMP out performing SPY over long run periods
http://seekingalpha.com/article/310831-it-just-gets-better-at-kinder-morgan?ifp=0&source=email_alternative_energy_investing
You're a very creative man bio... very interesting.
I've been away for a bit. Busy, busy, busy...
Back now... but, off to movie... have a great weekend.
In Reply to 'biomanbaba'
writing covered call is the most conservative and simple thing you can do
if you buy 100 MCP for $3500 when you write the covered call your broker GIVES you the call premium....was 8 on friday...so you actually had to spend $2700........then you have to wait out the expiration date...with a strike of 50 you might have to give up your shares for $5000....in which case you have collected $5800
....if the shares only move to 49 the call expires worthless and you get to keep the $800 plus your shares....and you can never lose a dime UNLESS MCP falls below 27...which you and I agree is VERY unlikely............regards
writing covered call is the most conservative and simple thing you can do
if you buy 100 MCP for $3500 when you write the covered call your broker GIVES you the call premium....was 8 on friday...so you actually had to spend $2700........then you have to wait out the expiration date...with a strike of 50 you might have to give up your shares for $5000....in which case you have collected $5800
....if the shares only move to 49 the call expires worthless and you get to keep the $800 plus your shares....and you can never lose a dime UNLESS MCP falls below 27...which you and I agree is VERY unlikely............regards
You are way over my head on this. All I do is go in and out on various stocks using naked puts or calls.
Very interestingting idea. ;) Odds are right that MCP won't hit that 27.
In Reply to 'biomanbaba'
Here is one for you.........how to print money....really
1) buy MCP at 35
2) write the Jan 13 call 50 for 8
3) BUY KMP with the 8 ( x however many K you can afford)
worst case you get exercised and collect 58 on 35 plus some dividends....there IS NO downside risk IMO...MCP never trades to 27
http://seekingalpha.com/article/295485-molycorp-rare-earth-leader-now-dirt-cheap?source=email_stocks_and_sectors
Here is one for you.........how to print money....really
1) buy MCP at 35
2) write the Jan 13 call 50 for 8
3) BUY KMP with the 8 ( x however many K you can afford)
worst case you get exercised and collect 58 on 35 plus some dividends....there IS NO downside risk IMO...MCP never trades to 27
http://seekingalpha.com/article/295485-molycorp-rare-earth-leader-now-dirt-cheap?source=email_stocks_and_sectors
I like this model here. You should keep 'em coming. Post them on my message board (Turn Key Oil).
I found this exciting when I read this the other day. Looks like it might have kicked up the stock a bit.
they remain the FOUNDATION of my energy complex positions
New $220 Million Kinder Morgan-Valero Pipeline Will Expand Fuel Supply to Southeast United States
http://ih.advfn.com/p.php?pid=nmona&article=49171864&symbol=KMP
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it will build and operate a new 136-mile, 16-inch pipeline to transport gasoline, jet fuel and diesel from refineries in Norco, La., to an existing petroleum transportation hub in Collins, Miss., owned by Plantation Pipe Line Company. (Kinder Morgan owns 51 percent of Plantation Pipe Line Company and operates the system.) From this hub the refined petroleum products will be transported by pipeline systems, including Plantation, that serve major markets in the southeastern United States.
Kinder Morgan is partnering with Valero Energy Corp (NYSE: VLO) in this joint venture that will own Parkway Pipeline LLC. The pipeline will have an initial capacity of 110,000 barrels per day (bpd) with the ability to expand to over 200,000 bpd. The project is supported by a long-term throughput agreement with a credit worthy shipper and is expected to be accretive to cash available to KMP unitholders upon completion. Pending receipt of environmental and regulatory approvals, the approximately $220 million pipeline project is expected to be in service by mid-year 2013.
“We are delighted to work with Valero to add pipeline transportation capacity while providing all shippers with broader access to Gulf Coast refineries,” said KMP Products Pipelines President Tom Bannigan. “This project will enhance fuel supply and optionality for sourcing refined products into Southeastern markets currently served by pipeline systems such as Plantation Pipe Line Company.”
Construction of the Parkway Pipeline will follow existing utility rights-of-way wherever possible to minimize environmental impacts.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion. For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Kinder Morgan and Energy Transfer believe that their expectations are based on reasonable assumptions, they can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan’s and Energy Transfer’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
How to invest $100 million tomorrow
70m KMP
10m CLSN
10m SNTA
10M THLD
Lookin' like a good retirement stock.
Kinder Morgan Energy Partners LP (KMP) – This North American owner and manager of energy transportation and storage assets also saw declines in share price on Tuesday, and was trading near its 52-week low.
Founded in 1992 and based in Houston, KMP has a market capitalization of $22.45 billion. We like its 6.6 percent dividend yield. KMP’s price to earnings ratio of 118.19 is very high. Earnings per share is $0.58. Its gross margin of 39.07 percent exceeds the industry average of 27.49 percent. Return on equity is 17.66 percent. Its debt to equity ratio is high at 157.48. This Motley Fool article considers what may seem excessive goodwill and other intangible assets on KMP’s balance sheet.
KMP’s main competitor is Enterprise Products Partners LP (EPD). It has a larger market capitalization of $34.36 billion, quarterly revenue growth of 48.7 percent (compared to KMP’s 2.9 percent), and a much lower price-to-earnings ratio of 23.24. Earnings per share are higher at $1.75. EPD’s return on equity is 13.39 percent, which is a little less than KMP's. Its debt-to-equity ratio is also high at 122.27.
Boy, does Cramer love this stock.
Kinder Morgan Energy Part (KMP): Kinder Morgan Energy Partners is a U.S. energy company that provides energy products transportation and storage services. Cramer repeated his buy recommendation of KMP twice during the last 30 days. KMP recently traded at $66.25 and has a 6.94% dividend yield. KMP gained 4.46% during the last 12 months. The stock has a market cap of $21.8 billion and P/E ratio of 114.2. Michael Messner's Seminole Capital holds the largest KMP position among the 300-plus funds we are tracking.
Top 5 of Cramer's Energy picks.... not too shabby
Top 5 of Cramer's Energy picks.... not too shabby
I agree! We need to gain some following here.
I think you hit the nail on the head......too bad this board has so few followers
KMP inflation proof?
Kinder Morgan Energy LP (NYSE: KMP)
KMP is one of the largest energy transportation companies in America with approximately 37,000 miles of pipelines under management. With the energy demand expected to grow annually by 1% for the next 20 years, KMP is busy expanding and upgrading its infrastructure to meet this future demand.
KMP over the last 5 years on an average has increased its dividend payment by 6.38% compounded annually. During the same period its average dividend yield has been 6.82% and at the time of writing its dividend yield is 6.2%. KMP has a pretty consistent distribution ratio of around 55% , leaving its management room for consistent payment and avoiding fluctuations in earnings.
This is such a debatable topic. The shale plays have increased production in the U.S. but the pipeline would obviously help to provide a more consistent flow of oil into the U.S. I wonder if the concept of China accepting if we don't may light a fire to accept and build the pipeline. A little competition may sway some opinions.
What do you think?
Turnkey.........love to hear your comments on this article in particular
http://blogs.forbes.com/energysource/2011/06/30/if-u-s-says-no-to-canadian-oil-sands-pipeline-china-will-say-yes/?partner=yahootix
and KeystoneXL in general
regards
the biomanbaba
KMP is mentioned in the middle of the text
more good news from the stock I never sell
KMP - Kinder Morgan-Copano Increase Presence in Eagle Ford Shale With New Long Term Contracts
http://ih.advfn.com/p.php?pid=nmona&article=48279582&symbol=KMP
Eagle Ford Gathering LLC, a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Copano Energy, L.L.C. (NASDAQ: CPNO), today announced the execution of two long-term agreements to provide transportation, processing and fractionation services to Petrohawk Energy Corporation (NASDAQ: HK) and Rosetta Resources Operating LP, an affiliate of Rosetta Resources Inc. (NASDAQ: ROSE) two of the leading operators in the Eagle Ford Shale play in South Texas.
Eagle Ford Gathering has contracted with Petrohawk for up to 50,000 MMBtu per day of Eagle Ford Shale natural gas production from leases in LaSalle and McMullen Counties, Texas, and with Rosetta for up to 50,000 MMBtu per day of Eagle Ford Shale natural gas production from leases in Webb and Dimmit Counties, Texas. Each agreement has an approximate term of 10 years.
Duane Kokinda, president of Kinder Morgan's Intrastate Pipeline Group, said, "With the addition of these two agreements, the joint venture has contracted for a total of 550,000 MMBtu per day of Eagle Ford Shale natural gas production. There continues to be strong interest from producers for additional capacity, and the joint venture is evaluating projects to expand its ability to handle natural gas from the Eagle Ford Shale play."
"We are pleased to add Petrohawk and Rosetta to the growing number of producers who have selected Eagle Ford Gathering as a midstream provider," said Jim Wade, President and Chief Operating Officer of Copano Energy's Texas segment.
Eagle Ford Gathering's previously announced 30-inch pipeline in the western Eagle Ford Shale play is under construction and is expected to begin service in the third quarter of 2011. After fully subscribing its initial processing capacity of 375,000 MMBtu per day at Copano's Houston Central plant, the joint venture recently announced plans to construct 72 miles of additional pipelines and associated compression that will enable the joint venture to deliver Eagle Ford production to Formosa Hydrocarbons Company's Point Comfort Plant and Williams Field Services' Markham Plant for processing. These incremental pipelines and facilities, which are expected to be completed by year end, will enable the joint venture to more fully utilize the 600 MMcf per day capacity of its 30-inch line.
About Kinder Morgan Energy Partners
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion. For more information please visit www.kindermorgan.com.
About Copano Energy, L.L.C.
Houston-based Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with operations in Oklahoma, Texas, Wyoming and Louisiana. Its assets include approximately 6,400 miles of active natural gas gathering and transmission pipelines, 250 miles of NGL pipelines and ten natural gas processing plants, with over one Bcf per day of combined processing capacity and 22,000 barrels per day of fractionation capacity. For more information please visit www.copanoenergy.com.
Forward-Looking Statements
This news release includes forward-looking statements. Although Kinder Morgan and Copano Energy believe that their expectations are based on reasonable assumptions, they can give no assurance that such assumptions will materialize or that the proposed transactions will be consummated. Important factors that could cause actual results to differ materially from those in the forward-looking statements in this release include: the impact of inflation on project costs and the availability of required resources; the effects on the project schedule, project costs, or both, of numerous regulatory, environmental, political, legal and operational uncertainties; the impact on volumes and resulting cash flow of technological, economic and other uncertainties inherent in estimating future production and producers' ability to drill and successfully complete and attach new natural gas supplies, and the availability of downstream transportation systems and other facilities for natural gas and NGLs. These and other risks and uncertainties are described in the risk factors sections of Kinder Morgan's and Copano Energy's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
Contacts
Kinder Morgan Energy Partners, L.P.Media RelationsJoe Hollier, (713) 369-9176orInvestor RelationsMindy Mills, (713) 369-9490
Copano Energy, L.L.C.Carl A. Luna, SVP and CFO713-621-9547orJack Lascar / jlascar@drg-l.comAnne Pearson/ apearson@drg-l.comDRG&L / 713-529-6600
SOURCE Kinder Morgan Energy Partners, L.P.; Copano Energy, L.L.C.
KMP mentioned in article about High dividend growth
http://seekingalpha.com/article/275502-top-dividend-stocks-with-high-dividend-growth-rates?source=email_watchlist
Kinder Morgan-Copano Increase Processing Capacity in Eagle Ford Shale
http://ih.advfn.com/p.php?pid=nmona&article=48071841&symbol=KMP
Eagle Ford Gathering LLC, a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Copano Energy, L.L.C. (NASDAQ: CPNO), today announced a long-term agreement with Williams Partners L.P. (NYSE: WPZ) to process Eagle Ford Shale production at Williams Partners' Markham processing plant located in Matagorda County, Texas. Eagle Ford Gathering will construct a 7-mile, 20-inch lateral to connect its previously announced crossover pipeline project to the Markham plant and install approximately 3,400 horsepower of compression at a cost of approximately $27 million. The agreement will initially provide Eagle Ford Gathering with 100 million cubic feet per day of processing capacity at the Markham plant, with an option to increase its capacity to up to 200 million cubic feet per day.
Duane Kokinda, president of Kinder Morgan's Intrastate Pipeline Group, said, "We are pleased to enter into this significant new agreement with Williams Partners to increase the joint venture's gas processing capabilities. The new agreement augments the previously announced agreement with Formosa Hydrocarbons Company, resulting in up to 375 million cubic feet per day of total processing capacity through the crossover project. We expect to break ground on the crossover pipeline in July and to place it in service in the fourth quarter of 2011. In addition, the joint venture has 375,000 MMbtu per day of processing capacity at Copano's Houston Central plant through Kinder Morgan's Laredo-to-Katy pipeline."
"The joint venture's 117-mile, 30- and 24-inch system through McMullen, La Salle, Dimmit and Webb Counties is nearing completion," said Jim Wade, President and Chief Operating Officer of Copano Energy's Texas segment. "We expect the system to be placed into service in September and begin processing joint venture gas at Copano's Houston Central complex. We are pleased with the new, long-term relationship with Williams Partners, which represents continued progress in executing our overall Eagle Ford Shale strategy. The joint venture's combined capacity commitments, along with Copano's recently announced expansion of the Houston Central complex, will provide South Texas producers access to processing and fractionation capacity of up to 1.4 billion cubic feet of gas per day and over 100,000 barrels per day of NGL fractionation and product market."
Through Eagle Ford Gathering, Kinder Morgan and Copano expect to invest approximately $300 million in midstream infrastructure to provide gathering, transportation, processing and fractionation services to Eagle Ford Shale producers.
About Kinder Morgan Energy Partners
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion. For more information please visit www.kindermorgan.com.
About Copano Energy, L.L.C.
Houston-based Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with operations in Oklahoma, Texas, Wyoming and Louisiana. Its assets include approximately 6,400 miles of active natural gas gathering and transmission pipelines, 250 miles of NGL pipelines and ten natural gas processing plants, with over one Bcf per day of combined processing capacity and 22,000 barrels per day of fractionation capacity. For more information please visit www.copanoenergy.com.
Forward-Looking Statements
This news release includes forward-looking statements. Although Kinder Morgan and Copano Energy believe that their expectations are based on reasonable assumptions, they can give no assurance that such assumptions will materialize or that the proposed transactions will be consummated. Important factors that could cause actual results to differ materially from those in the forward-looking statements in this release include: the impact of inflation on project costs and the availability of required resources; the effects on the project schedule, project costs, or both, of numerous regulatory, environmental, political, legal and operational uncertainties; the impact on volumes and resulting cash flow of technological, economic and other uncertainties inherent in estimating future production and producers' ability to drill and successfully complete and attach new natural gas supplies, and the availability of downstream transportation systems and other facilities for natural gas and NGLs. These and other risks and uncertainties are described in the risk factors sections of Kinder Morgan's and Copano Energy's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
Contacts
Kinder Morgan Energy Partners, L.P.
Media Relations
Joe Hollier, (713) 369-9176
or
Investor Relations
Mindy Mills, (713) 369-9490
Copano Energy, L.L.C.
Carl A. Luna, SVP and CFO
713-621-9547
or
Jack Lascar / jlascar@drg-l.com
Anne Pearson/ apearson@drg-l.com
DRG&L / 713-529-6600
SOURCE Kinder Morgan Energy Partners, L.P.; Copano Energy, L.L.C.
It would depend on who takes over. But, you have a good point.
the ONLY thing that would ever get me to sell is Mr Kinders health.....which is ok for now as I understand it....he is like Steve Jobs is to APPLE IMO
Kinder Morgan Grows Petcoke Terminal Network with Port Arthur Acquisition
http://ih.advfn.com/p.php?pid=nmona&article=48042904&symbol=KMP
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that it has acquired a newly constructed petroleum coke (petcoke) terminal in Port Arthur, Texas, for approximately $67 million from TGS Development Group. KMP will operate the facility, which handles petcoke from Total Petrochemicals USA, Inc.’s recently expanded Port Arthur refinery, and provide conveying, storage and ship loading services to Total pursuant to a 25-year contract. The refinery is expected to produce more than 1 million tons of petcoke annually. The transaction, which was developed in partnership with TGS and Total, is expected to be immediately accretive to cash distributable to KMP unitholders.
“We are pleased to expand our large petcoke handling network and look forward to providing superior service to Total through this long-term contract,” said Jeff Armstrong, president of Kinder Morgan’s Terminals segment. Kinder Morgan is the largest handler of petcoke in North America and expects to handle more than 13 million tons in 2011.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion. For more information please visit www.kindermorgan.com.
Seems todays news was actually another company with same ticker in Canada. ;)
why investors come and STAY. After you have a few shares and you notice that DIVIDEND increases have pushed YOUR returns to numbers ONLY SOMETIMES achieved by hedge fund managers; then you get your 1099 and ROLL in the floor laughing about the great tax benefits you have.....it dawns on you that selling would be entirely FOOLISH
The staff next gave a presentation on strategies for normalizing the stance and conduct of monetary policy over time as the economy strengthens. Normalizing the stance of policy would entail the withdrawal of the current extraordinary degree of accommodation at the appropriate time, while normalizing the conduct of policy would involve draining the large volume of reserve balances in the banking system and shrinking the overall size of the balance sheet, as well as returning the SOMA to its historical composition of essentially only Treasury securities. The presentation noted a few key issues that the Committee would need to address in deciding on its approach to normalization. The first key issue was the extent to which the Committee would want to tighten policy, at the appropriate time, by increasing short-term interest rates, by decreasing its holdings of longer-term securities, or both. Because the two policies would restrain economic activity by tightening financial conditions, they could be combined in various ways to achieve similar outcomes. For example, in principle, the Committee could accomplish essentially the same degree of monetary tightening by selling assets sooner and faster but raising the target for the federal funds rate later and more slowly, or by selling assets later and more slowly but increasing the federal funds rate target sooner and faster. The SOMA portfolio could be reduced by selling securities outright, by ceasing the reinvestment of principal payments on its securities holdings, or both. A second key issue was the extent to which the Committee might choose to vary the pace of any asset sales it undertakes in response to economic and financial conditions. If it chose to make the pace of sales quite responsive to conditions, the FOMC would be able to actively use two policy instruments--asset sales and the federal funds rate target--to pursue its economic objectives, which could increase the scope and flexibility for adjusting financial conditions. In contrast, sales at a pace that varied less with changes in economic and financial conditions and was preannounced and largely predetermined would leave the federal funds rate target as the Committee's primary active policy instrument, which could result in policy that is more straightforward for the Committee to calibrate and to communicate. Finally, the staff presentation noted that the Committee would need to decide if and when to use the tools that it has developed to temporarily reduce reserve balances--reverse repurchase agreements and term deposits--in order to tighten the correspondence between any changes in the interest rate the Federal Reserve pays on excess reserves and the changes in the federal funds rate.
Meeting participants agreed on several principles that would guide the Committee's strategy for normalizing monetary policy. First, with regard to the normalization of the stance of monetary policy, the pace and sequencing of the policy steps would be driven by the Committee's monetary policy objectives for maximum employment and price stability. Participants noted that the Committee's decision to discuss the appropriate strategy for normalizing the stance of policy at the current meeting did not mean that the move toward such normalization would necessarily begin soon. Second, to normalize the conduct of monetary policy, it was agreed that the size of the SOMA's securities portfolio would be reduced over the intermediate term to a level consistent with the implementation of monetary policy through the management of the federal funds rate rather than through variation in the size or composition of the Federal Reserve's balance sheet. Third, over the intermediate term, the exit strategy would involve returning the SOMA to holding essentially only Treasury securities in order to minimize the extent to which the Federal Reserve portfolio might affect the allocation of credit across sectors of the economy. Such a shift was seen as requiring sales of agency securities at some point. And fourth, asset sales would be implemented within a framework that had been communicated to the public in advance, and at a pace that potentially could be adjusted in response to changes in economic or financial conditions.
In addition, nearly all participants indicated that the first step toward normalization should be ceasing to reinvest payments of principal on agency securities and, simultaneously or soon after, ceasing to reinvest principal payments on Treasury securities. Most participants viewed halting reinvestments as a way to begin to gradually reduce the size of the balance sheet. It was noted, however, that ending reinvestments would constitute a modest step toward policy tightening, implying that that decision should be made in the context of the economic outlook and the Committee's policy objectives. In addition, changes in the statement language regarding forward policy guidance would need to accompany the normalization process.
Participants expressed a range of views on some aspects of a normalization strategy. Most participants indicated that once asset sales became appropriate, such sales should be put on a largely predetermined and preannounced path; however, many of those participants noted that the pace of sales could nonetheless be adjusted in response to material changes in the economic outlook. Several other participants preferred instead that the pace of sales be a key policy tool and be varied actively in response to changes in the outlook. A majority of participants preferred that sales of agency securities come after the first increase in the FOMC's target for short-term interest rates, and many of those participants also expressed a preference that the sales proceed relatively gradually, returning the SOMA's composition to all Treasury securities over perhaps five years. Participants noted that, for any given degree of policy tightening, more-gradual sales that commenced later in the normalization process would allow for an earlier increase of the federal funds rate target from its effective lower bound than would be the case if asset sales commenced earlier and at a more rapid pace. As a result, the Committee would later have the option of easing policy with an interest rate cut if economic conditions then warranted. An earlier increase in the federal funds rate was also mentioned as helpful to limit the potential for the very low level of that rate to encourage financial imbalances. A few participants expressed a preference that sales begin before any increase in the federal funds rate target, and a few other participants indicated that sales and increases in the federal funds rate target should commence at the same time. The participants who favored earlier sales also generally indicated a preference for relatively rapid sales, with some suggesting that agency securities in the SOMA be reduced to zero over as little as one or two years. Such an approach was viewed as allowing for a faster return to a normal policy environment, potentially reducing any upside risks to inflation stemming from outsized reserve balances, and more quickly eliminating any effects of SOMA holdings of agency securities on the allocation of credit.
Most participants saw changes in the target for the federal funds rate as the preferred active tool for tightening monetary policy when appropriate. A number of participants noted that it would be advisable to begin using the temporary reserves-draining tools in advance of an increase in the Committee's federal funds rate target, in part because doing so would put the Federal Reserve in a better position to assess the effectiveness of the draining tools and judge the size of draining operations that might be required to support changes in the interest on excess reserves (IOER) rate in implementing a desired increase in short-term rates. A number of participants also noted that they would be prepared to sell securities sooner if the temporary reserves-draining operations and the end of the reinvestment of principal payments were not sufficient to support a fairly tight link between increases in the IOER rate and increases in short-term market interest rates.
In the discussion of normalization, some participants also noted their preferences about the longer-run framework for monetary policy implementation. Most of these participants indicated that they preferred that monetary policy eventually operate through a corridor-type system in which the federal funds rate trades in the middle of a range, with the IOER rate as the floor and the discount rate as the ceiling of the range, as opposed to a floor-type system in which a relatively high level of reserve balances keeps the federal funds rate near the IOER rate. A couple of participants noted that any normalization strategy would likely involve an elevated balance sheet with the federal funds rate target near the IOER rate--as in floor-type systems--for some time, and therefore the Committee would accumulate experience during the process of normalizing policy that would allow it to make a more informed choice regarding the longer-term framework at a later date.
The Committee agreed that more discussion of these issues was needed, and no decisions regarding the Committee's strategy for normalizing policy were made at this meeting.
Thats true. Do you have more details about that?
the threat facing KMP is the Fed period
Think the lead in the Trans Mountain Pipeline will effect KMP? Its looking nice now... will it hold on?
Wow, KMP took a real fall
I agree. KMP is looking pretty good.
I will repost that one on the bio wave........must reading for the fans there
should have said Smart People LOL
Kinder Morgan to Purchase Midstream Shale Assets for $920 Million and Build Crude/Condensate Pipeline
http://ih.advfn.com/p.php?pid=nmona&article=47541564&symbol=KMP
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has entered into a definitive agreement to pay approximately $855 million to Petrohawk Energy Corporation (NYSE: HK) and assume approximately $65 million in debt for Petrohawk’s 50 percent interest in KinderHawk Field Services (the natural gas gathering and treating services provider in the Haynesville Shale) and a 25 percent interest in Petrohawk’s natural gas gathering and treating business in the Eagle Ford Shale. Additionally, KMP will invest approximately $220 million to build a new crude/condensate pipeline with a capacity of approximately 300,000 barrels per day (bpd) that will initially transport 50,000 bpd of condensate for Petrohawk from its production area in the Eagle Ford to the Houston Ship Channel.
“We are pleased to increase our footprint in the Eagle Ford and Haynesville shale plays by acquiring these fee-based assets from Petrohawk and building a crude/condensate pipeline,” said Chairman and CEO Richard D. Kinder. “As we detailed at our recent investor conference, we expect opportunities in the prolific natural gas shales to be a primary driver of future growth at KMP. In addition to our Natural Gas business segment, which will benefit from the acquisition, our Products Pipelines segment will realize growth from the construction and operation of the new pipeline that will transport condensate and crude oil. We have executed a long-term anchor agreement with Petrohawk for 50,000 bpd of condensate, and this new pipeline offers the potential to ship significant incremental third-party volumes above that amount.”
Upon closing, which is expected in the third quarter this year, KMP will own 100 percent of KinderHawk, the largest natural gas gathering and midstream business in the Haynesville Shale of northwest Louisiana. KinderHawk currently has more than 400 miles of pipeline with over 2 billion cubic feet (Bcf) per day of pipeline capacity and throughput of over 0.9 Bcf per day. Throughput is expected to reach 1.2 Bcf per day by year end. In the Eagle Ford Shale in south Texas, KMP and Petrohawk will form a joint venture (KMP will own 25 percent and Petrohawk 75 percent) that will own two midstream gathering systems in and around Petrohawk’s Hawkville and Black Hawk fields. The joint venture, which will have a life of lease dedication of Petrohawk’s reserves, will provide Petrohawk and other area producers with gas and condensate gathering, treating and condensate stabilization services. Combined, the joint venture assets will consist of more than 280 miles of gas gathering pipelines and approximately 112 miles of condensate gathering lines to be in service by year end. KMP already has a significant presence in the Eagle Ford through its existing assets and its joint venture with Copano Energy, L.L.C. (Nasdaq: CPNO), which provides natural gas gathering, transportation, processing and fractionation services to various customers.
KMP’s crude/condensate pipeline will consist of about 61 miles of new-build construction and 109 miles of existing natural gas pipeline that is being converted. Service to KMP’s natural gas customers in the Houston Ship Channel will not be affected by this optimization of the company’s Texas intrastate pipeline system. The pipeline will originate in Petrohawk’s Black Hawk Field near Cuero, Texas, and extend to the Houston Ship Channel where it will initially deliver condensate to multiple terminaling facilities with access to local refineries, petrochemical plants and docks. The new pipeline is expected to be in service in the second quarter of 2012.
“We believe the crude/condensate pipeline will be very attractive to other Eagle Ford producers who are looking to get their products into the marketplace,” Kinder said. “We are in the advanced stage of discussions with other producers, which are expected to result in substantial additional throughput agreements in the future.” Those interested in obtaining more detailed information about the pipeline project can visit the Kinder Morgan web site or contact Don Lindley, vice president of business development for the company’s Products Pipelines business segment, at (713) 369-8840 or Don_Lindley@kindermorgan.com.
The acquisition of Petrohawk’s assets is expected to be accretive to cash available to unitholders upon closing, even including the assumption that KMP finances the transaction with about 60 percent equity. The general partner of KMP (Kinder Morgan, Inc. (NYSE: KMI)) has agreed to forego a portion of its incremental incentive distributions in 2012 and 2013 of approximately $26 million and $4 million, respectively, to support this transaction. The new condensate pipeline will be accretive to cash available to unitholders when it begins service next year.
The transaction will be immediately accretive to KMI’s cash available to pay dividends, even after foregoing a portion of the incremental incentive distributions this transaction is expected to produce. The increase in KMI’s cash available to pay dividends (net of the amounts voluntarily foregone in 2012 and 2013) is expected to be approximately $6 million in 2011, $17 million in 2012 and $25 million in 2013, and is expected to grow thereafter.
From an accounting perspective, because KMP is paying less for the second half of the Haynesville assets than it paid for the first half, KMP will take a second quarter non-cash write down of the carrying value of the first half of the Haynesville assets estimated to be less than $200 million. From an economic perspective, KMP expects to earn an attractive return well in excess of the company’s cost of capital on the total investment in the Haynesville and the other components of this transaction.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates approximately 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion. For more information please visit www.kindermorgan.com.
Please join Kinder Morgan at 9:00 a.m. Eastern Time on Thursday, May 5, at www.kindermorgan.com for a LIVE webcast conference call to discuss this major acquisition, strategic joint venture and new pipeline.
This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.
People are raving about KMP
Kinder Morgan Energy Partners (NYSE: KMP) is what I believe to be the Apple of the oil and natural gas industry. It’s the largest of all of the pipeline limited partnerships, and by most accounts, the best managed.
You see, all it does is transport other companies’ products around the country, through its network of 37,000 miles of pipelines and 180 terminals. Its pipeline networks reach the hottest and most active shale and natural gas plays, including the Bakken and the Eagle Ford shale formations.
It transports natural gas, crude oil, refined petroleum products, CO2, and other liquid products and chemicals. Its vast network of terminals not only store petroleum products, but handle coal, coke and steel, as well.
From a performance perspective, you couldn’t ask for a better company. It just raised its first-quarter 2011 quarterly cash distribution by seven percent (compared to a year ago), when it reported last week.
But this wasn’t a one-time raise of its dividend. It has a long history of raising its dividends as its stock price has increased in order to keep its yield around five to six percent. Its long-term annual growth is targeted at around five percent.
Since Kinder derives the bulk of its revenue from the transport of oil and gas, the price of what’s in the pipe has almost no effect on how much Kinder gets paid. It’s simply the tollbooth operator, or the “meter-reader.”
Want Higher Growth? The Kinder Morgan Trifecta Has It All…
Kinder Morgan, Inc. (NYSE: KMI) is the general partner of Kinder Morgan Limited Partners. It sports a lower yield (around four percent), but is set up as more of a growth play, with the company aiming for approximately 10 to 11 percent annual share appreciation.
Either way, you win, but if the markets have you a little jittery, Kinder Morgan Energy Partners is the more risk-averse of the two.
As the economy continues to improve and the amount of oil and gas that’s used continues to increase, Kinder’s revenue – and its share price – will likely come right along in lockstep, just like it’s been doing for years. And investors who jump on the bandwagon get paid 5.9 percent to enjoy the ride.
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Kinder Morgan Energy Partners LP (KMP)
Company Address:
500 Dallas St
Suite 1000
Houston, TX
United States, 77002
Phone: 713-369-9000
CIK: 0000888228
Kinder Morgan owns or operates approximately 37,000 miles of pipelines and 180 terminals in North America. Our companies include Kinder Morgan Energy Partners, L.P. (NYSE: KMP), Kinder Morgan Management, LLC (NYSE: KMR) and Kinder Morgan, Inc., a private company which owns the general partner of KMP.
Kinder Morgan has a large footprint of diversified and strategically located assets, and we are a market leader in most of our businesses. For example, in North America, we are:
Almost all of our assets are owned by Kinder Morgan Energy Partners (NYSE: KMP), the largest publicly traded pipeline master limited partnership with an enterprise value of more than $30 billion. KMP is comprised of five business segments – Natural Gas Pipelines, Products Pipelines, CO2, Terminals and Kinder Morgan Canada.
Management: http://www.kindermorgan.com/about_us/about_us_kmi_management.cfm
Important Company Highlights:
At Kinder Morgan, we pride ourselves on being a different kind of energy company. What makes us different?
It starts at the top with Chairman and CEO Richard D. Kinder, who earns a salary of $1 per year and does not receive a bonus, stock options or restricted stock grants. As a shareholder/unitholder, Kinder’s financial rewards are directly aligned with the company’s investors – if the company does well, he does well
Recent News:
http://finance.yahoo.com/q/h?s=KMP+Headlines
http://www.marketwatch.com/investing/stock/KMP/news
Transfer Agent:
ComputerShare Trust Co
800-519-3111
www.computershare.com
Limited Partner Units: See filings
Investor Relations:
Retail/Individual Investors
Mindy Mills 713-369-9449
Mindy_Mills@KinderMorgan.com
Institutional Investors
Peter Staples 713-369-9221
Peter_Staples@KinderMorgan.com
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