Morningstar Rating

Stock Research and Analysis

by Jason Stevens

Bulls Say

With the consolidation in the rear-view mirror, Kinder Morgan is starting a new chapter as the largest midstream firm in North America.
We agree with management's expectations of 10% dividend growth through 2020, providing a solid outlook for both income and growth.
Kinder Morgan is poised to be a consolidator, and Chairman Rich Kinder has already signaled his intent to hunt for accretive acquisitions. Over time this will help propel Kinder's growth. Read more 

Bears Say

With lower oil prices, there's a new headwind facing project development. It may become harder to keep project backlogs full, threatening longer-term organic growth.
The TransMountain expansion is meeting with increasing opposition. Pipeline politics are playing out, moving the project from a sure thing to a maybe, pushing out likely in-service dates, and driving up project costs.
It's unclear how the consolidated Kinder Morgan will fund new growth--will it raise equity capital like KMP did, and will markets tolerate that from a c-corp? 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 the largest pipeline company in the   Read more 

Profile

Kinder Morgan is the largest midstream energy firm in North America, with more than 80,000 miles of pipeline and 180 terminals. The company is active in the transportation,  Read more 

Friday Five: A Few Wrinkles in the Kinder Deal 
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