Morningstar Rating

Stock Research and Analysis

by Jason Stevens

Bulls Say

KMI offers investors an opportunity to participate in the growth of KMP and EPB's general partner and incentive distributions.
As a C corporation and not an MLP, KMI presents fewer tax complications for investors and may appeal to a broader investor pool.
KMI's underlying wide-moat assets are attractive, consistent cash flow generators. Read more 

Bears Say

KMP's long-term distribution growth story is pressured. KMP is getting so big it must put tremendous amounts of capital to work to boost its distribution.
KMI's ownership interests in KMP and KMR and the cash flows between them are complex, and the addition of El Paso and EPB has only made it more so. Understanding this company can be challenging.
The current KMP partnership agreement calls for the general partner to get 50% of incremental "available cash," which will make completing projects and acquisitions that boost cash flow for both the general partner and unitholders difficult. Read more 

Management

We think Rich Kinder is the rarest kind of visionary. Not only did he see the potential for a hard assets business within Enron's asset-light culture, but he has a focus on execution that has enabled him to build one of the largest pipeline companies   Read more 

Profile

Kinder Morgan Inc. owns the general partner, incentive distribution rights, and an approximate 9% interest in the limited partner units outstanding of Kinder Morgan Energy   Read more 

Friday Five: A Few Wrinkles in the Kinder Deal 
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