Morningstar Rating

Stock Research and Analysis

by Jason Stevens

Bulls Say

Investments in new natural gas pipeline capacity in the Marcellus and Southwest are boosting throughput and revenue.
Kinder's project backlog now stands at $16.4 billion, which supports clear growth visibility over the next several years.
Pipelines tend to have wide economic moats. Pipes are expensive to duplicate, and new ones are not built without regulatory approval. Read more 

Bears Say

The structure and relationships among the various parts of the Kinder Morgan empire are highly complex. Understanding this firm is no small feat.
The current partnership agreement calls for the general partner to get 50% of incremental "available cash" at today's distribution rate, which will make competing for accretive projects and acquisitions more difficult.
A material portion of Kinder Morgan's cash flow growth this past decade has been courtesy of rising oil prices. Should oil prices stabilize or reverse course, cash flow growth could suffer materially. Read more 

Management

We think Rich Kinder is the rarest kind of visionary. Not only did he see the potential for a hard-asset 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 Energy Partners is one of the largest master limited partnerships, engaged in the transportation and storage of energy commodities. It operates more than 37,  Read more 

Friday Five: A Few Wrinkles in the Kinder Deal 
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