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re: Thoughts on Kinder Morgan

Posted on 12/8/15 at 10:02 pm to
Posted by djmicrobe
Planet Earth
Member since Jan 2007
4970 posts
Posted on 12/8/15 at 10:02 pm to
Will be interesting to see how much it tanks tomorrow.
Posted by Jp1LSU
Fiji
Member since Oct 2005
2542 posts
Posted on 12/8/15 at 10:42 pm to
I'd stay far away. Very few energy plays I'd put money in right now. Especially if your concerned about seeing the money back soon. Div's are getting slashed everywhere.
I've been buying and selling energy a ton this year but I have lots of money I think will get washed away. This market is not for the faint of heart.
Posted by CajunTiger92
Member since Dec 2007
2860 posts
Posted on 12/9/15 at 2:08 am to
quote:

Will be interesting to see how much it tanks tomorrow.


It will be interesting to see how the market reacts. The dividend cut may already be priced in.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
82043 posts
Posted on 12/9/15 at 9:56 am to
The market is loving the dividend cut. As you said, the cut was likely already priced in as dividend investors bowing out brought it down to where it was yesterday.
Posted by Blue Horseshoe
Member since Dec 2014
57 posts
Posted on 12/9/15 at 10:43 am to
The price movements we are seeing today probably has a lot to do with short sellers covering their positions.
Posted by CajunTiger92
Member since Dec 2007
2860 posts
Posted on 12/9/15 at 8:06 pm to
quote:

The price movements we are seeing today probably has a lot to do with short sellers covering their positions.


Certainly the case when it spiked up 8% or so. It isn't clear sailing by any stretch but KMI should be able to solve the debt issue.
Posted by cwill
Member since Jan 2005
54755 posts
Posted on 12/10/15 at 9:34 pm to
quote:

But Rich Kinder said they are a toll road operator! Commodity prices do not affect them!





The price of commodities indirectly affects them. As the price goes down there's less traffic on their toll roads, so less $$$ going into their coffers.
Posted by Porker Face
Eden Isle
Member since Feb 2012
15952 posts
Posted on 12/10/15 at 9:38 pm to
Good for them getting their balance sheet in order instead of taking on debt to make a damn dividend payment

If I wouldn't have to file taxes in 30 states I would consider buying some
This post was edited on 12/10/15 at 9:39 pm
Posted by sneakytiger
Member since Oct 2007
2497 posts
Posted on 12/11/15 at 11:26 am to
I was being an arse if that wasn't clear. They also have direct exposure on their 57,000 boe/d of production. Basically a O&G producer the size of EXXI inside of KMI.

Posted by whodatigahbait
Uptown
Member since Oct 2007
1834 posts
Posted on 12/11/15 at 1:31 pm to
quote:

Good for them getting their balance sheet in order instead of taking on debt to make a damn dividend payment

If I wouldn't have to file taxes in 30 states I would consider buying some


They aren't an MLP any more. They now file 1099 not K-1.
Posted by cwill
Member since Jan 2005
54755 posts
Posted on 12/11/15 at 10:14 pm to
quote:


I was being an arse if that wasn't clear. They also have direct exposure on their 57,000 boe/d of production. Basically a O&G producer the size of EXXI inside of KMI.



All CO2 fields that are likely all uneconomic.
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