Kinder Morgan Has a Crude Awakening Among Energy Stocks
NEW YORK (TheStreet) The recent decline in Brent crude has sent investors running from energy stocks as a whole. The entire sector is down, and worries of low realized prices continue. Even energpatagonia wetsuit vest reviewy names that have little direct exposure to oil prices have been pummeled. Pipeline giant Kinder Morgan
(KMI) is one of those names. Investors looking for more consepatagonia board shorts reviewrvative, incpatagonia chile land for saleome oriented energy investments might consider Kinder Morgan now. Thpatagonia down sweater lowest pricee stock is at a five month low, offers a dividend of 5%, and the company expects dividend growth of 10% until at least 2020.
While the company is mostly in pipelines, it does have some exposure to enhanced oil recovery. For that reapatagonia outlet better sweater jacketson, let s look at its relative exposure to oil in a low price environment.
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As a combined company, only 14% of Kinder Morgan s earnings before patagonia az property for saledepreciation, depletion and amortization come from oipatagonia down sweater lowest price1l production, but apatagonia better grey marl fleece jacketnother 6% comes from CO2, which is needed to extract that oil. So, altogether, patagonia down sweater lowest price2about 20% of Kinder Morgan s pro forma business is related to oil exploration and production a significant chunk.
But what about the other business lines? Does it have any exposure to oil prices? A recent presentation by management clears thpatagonia discount code icrackedis question up.
Naturapatagonia discount code neweggl Gas Pipelines: No direct impact on interstate pipelines. G has limited exposure to oil prices.
Prpatagonia down sweater lowest price3oduct Pipelines: Limited impact.
Terminals: No direct impact.
Kinder Morgan Canada: No dirpatagonia down sweater lowest price0ect impact.
It s been said before, but think of Kinder Morgan as a giant toll road. If the price of fuel for cars goes up, would that affect the revenue of the toll road? Not directlpatagonia guide jacket exoy, and, barring a huge spike that changes driving habits, the change in toll revenue would not be much. The same can be said of Kinder Morgan s fee based pipeline businesses in relation to the price of oil.
Management has quantified the effect of oil price volatility: For each dollar change in the price of oil, distributable cash flow will fluctuate by $7 million.
