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Tag Archives: KMP
For my first post back I want to update the last post I did before my hiatus. On Feb 10, I posted on how well the MLP sector did in January, with it being the second best January ever, and that good early year performance usually leads to strong results going forward. Lets see what the MLP sector has been up to since then. The chart below shows the performance of the AMJ ETF that tracks the MLP sector. What a year so far is all I can say! The MLP index total return for Q1 2013 was 19.7%, far … Continue reading
Kinder Morgan kicked off MLP earnings season on October 17 with a very strong report. I’ll briefly discuss the report and then discuss valuation and expected future returns for the Kinder Morgan family of companies. Kinder Morgan’s Q3 2012 earnings were very strong. The full press release is here for KMP, here for KMI, and here for EPB. A few words from the release and from Rich Kinder, the Chairman sums up the results nicely. Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.26 Per Unit Distribution 9% Higher Than Third Quarter 2011HOUSTON–(BUSINESS WIRE)–Oct. 17, 2012– Kinder Morgan Energy Partners, L.P. (NYSE: … Continue reading
Maybe it’s the contrarian in me but I keep expecting EPD to disappoint. Or maybe I’m hoping they disappoint so I can buy a ton more shares. But alas I was the one disappointed yet again. EPD reported strong Q2 2012 results on Aug 1st. Full release is here. Lets see how strong and resilient their results were. We are now smack in the middle of MLP earnings season with Kinder Morgan having kicked it off last week. So far the trend in the results has been some weakness in the numbers mainly due to lower oil and NGL prices. … Continue reading
Kinder Morgan announced Q4 2011 earnings after market on Jan 18, 2011. Being one of the top 3 MLPs by size, having the most diverse business, and being one of the best managed MLPs I think its illustrative of what is going on in the MLP sector to look at their earnings. This coming week KMP will also hold their annual investor day. The details of KMP’s earnings can be found here. At a high level, Kinder Morgan had yet another record quarter and again increased distribution to their limited partners. Distributions increased to $1.16 per unit from $1.13 per … Continue reading
It’s been since May that I updated my table on MLP valuation. With the recent volatility in the market and the month of August coming to an end it is a good time to take a look at MLP valuation. Lets jump right in. As I’ve done before, I updated my top 5 MLP table which also includes the MLP index, AMZ. I like to use both relative and absolute value metrics for any investments and I think the two best are dividend yield and the spread to the 10yr treasury note. Here is the updated table. MLPs, the AMZ, … Continue reading
Earnings season for the MLP sector officially got underway last night with Kinder Morgan reporting Q2 2011 results. The highlight of the release was a distribution increase to $1.15 per unit or $4.60 annualized. KMP currently yields 6.3% on this dividend. From the release: HOUSTON, July 20, 2011 – Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today increased its quarterly cash distribution per common unit to $1.15 ($4.60 annualized) payable on Aug. 12, 2011, to unitholders of record as of Aug. 1, 2011. The distribution represents a 6 percent increase over the second quarter 2010 cash distribution per unit of $1.09 … Continue reading
In my last post I described what I consider the worst case scenario for MLPs in the event that their tax favored status ends overnight. Today I want to look at a few of the upsides of such an event. Yes, I do think there are upsides to ending the MLP tax favored status. I can think of four upsides right away; incremental share demand, potential higher valuations, expanded business opportunities, and pricing power. Lets look at each of these possibilities. While the MLP sector has enjoyed strong and increasing investor demand over the years the tax complications and tax … Continue reading
Well, the MLP correction I discussed earlier seems to have run its course for now. I thought this would be a good time to see what this correction has done for MLP valuations relative to history. I last did this back at the end of Q1 2011 and was planning to hold off until the end of this quarter but I thought readers would be interested in a more timely update considering the recent drop in MLP prices. First, a few words on the correction. The MLP index, AMZ, hit bottom on May 17th at 351.19 representing a correction of … Continue reading
There looks to be a correction developing in the MLP sector that may bring up a significant opportunity that income investors should begin to have a plan for. Lets look at the drop in prices recently, potential reasons for the drop, and what it means for the sector and more importantly investors. As of 1PM or so Eastern time most of the MLP names are down between 5-13% off their highs. Here are recent prices for the MLPs that I follow and how much they are off their 52 week highs. Definitely looks like a correction is brewing if not … Continue reading
Kinder Morgan (KMP, KMR, KMI) reported Q1 2011 results last night after market close. Here is the summary from the press release. Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.14 Per Unit Distribution 7% Higher Than First Quarter 2010 HOUSTON, Apr 20, 2011 (BUSINESS WIRE) — Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today increased its quarterly cash distribution per common unit to $1.14 ($4.56 annualized) payable on May 13, 2011, to unitholders of record as of April 29, 2011. The distribution represents a 7 percent increase over the first quarter 2010 cash distribution per unit of $1.07 ($4.28 … Continue reading