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Kinder Morgan Inc
Kinder Morgan, Inc. is a publicly traded energy infrastructure company that operates midstream and, terminals, and toll road businesses in North America. The company operates through its subsidiary, Kinder Morgan Energy Partners L.P. It owns and operates a network of pipelines, storage facilities, and terminals that transport, store, and distribute petroleum products, natural gas, and carbon dioxide. The company also owns and operates a toll road in Texas.
Kinder Morgan, Inc. was founded in 1997 and is headquartered in Houston, Texas. The company is listed on the New York Stock Exchange.
Kinder Morgan'R'history can be traced back to 1938 when two entrepreneurs, Doc Sands and August H. Mohn, founded a small pipeline company
History of Kinder Morgan
Kinder Morgan's history can be traced back to 1938 when two entrepreneurs, Doc Sands and August H. Mohn, founded a small pipeline company called Kinder Morgan, Inc. In 1997, the company went public, and in 2000, it acquired the pipelines & terminal assets of Enbridge Energy. signifiantE's significant since it was the largest acquisition in the company's history at that time.
In 2001, the company acquired several pipelines from El Paso Energy, which further expanded its footprint in the United States. In 2003, Kinder Morgan acquired the Texas Intrastate Pipeline System from El Paso Energy, further expanding its reach in the Southwest.
In 2006, Kinder Morgan acquired the TransColorado Gas Pipeline from Duke Energy Field Services, which allowed it to enter the Rocky Mountain region.
A significant milestone was achieved in 2011 when the company completed the acquisition of the El Paso Corporation, a leading provider of natural gas pipeline, processing, and storage services. This acquisition more than doubled the size of Kinder Morgan's existing natural gas pipeline network, forming one of the largest independent natural gas pipeline companies in North America.
In 2012, Kinder Morgan acquired the Houston Ship Channel terminal from Marathon Petroleum Company, further expanding its storage and terminal capabilities.
In 2013, The company opened its second marine export terminal, the Houston Ship Channel terminal, to meet the growing demand for American oil and gas exports.
In 2014, the company purchased all of El Paso's outstanding shares, giving Kinder Morgan full ownership of the company's intrastate pipeline system in Texas and New Mexico.
In 2018, The company acquired a 49% interest in a company that owns a crude oil pipeline system in the Eagle Ford.
The other major business areas include terminals, CO2, and other.
Terminals: The terminals business segment includes petroleum and petroleum product storage terminals, and rail and marine Loading facilities. This segment owns and operates over 80 terminals in North America.
CO2: The CO2 segment is responsible for the operation of a CO2 pipeline system in the United States. This segment offers carbon dioxide supply agreements with producers and sell carbon dioxide.
Others: The Other section includes products pipelines and stores mag azines that store ethanol, refined petroleum products, and liquefied petroleum gases. They own and run approximately 26 such facilities in North America.
Kinder Morgan has increased its dividend payout annually for 25 consecutive years, making it an attractive choice for income investors. The company's dividend yield is currently around 5.4%, an attractive income stream for investors seeking income. Kinder Morgan's long history of growing its dividend payments makes it a reliable investment for income investors seeking relatively low volatility in their portfolio. While continued market volatility may pose challenges to dividend growth, the company's diversified asset base, strong financials, and historically shareholder-friendly management make it a reliable investment.
Kinder Morgan is financially strong and has a positive growth outlook. These factors, combined with a history of returning cash to shareholders through consistent dividend payments, make it an attractive investment for long-term investors seeking steady income.
In the third quarter of 2022, KMI reported Net income of $530 million, Adjusted EBITDA of $1.909 billion, and Distributable Cash Flow (DCF) of $1.315 billion, up 2% over the same period in the previou3 years, driven by higher Adjusted EBITDA from its operating segments.The backlog of organic growth projects was around $12.4B with substantial liquidity of $3. 2 bn, while its net debt was reduced by $1.3 bn. It reaffirmed its 2022 budget of $1.3 billion of excess Adjusted EBITDA, above the top end of its budget, and its backlog of organic growth projects increased to $13.6b, with the potential to further delever and buy back stock in 2023. The 3Q22 earnings release detailed $2.6 billion of projects, with the previously announced Cross-Florida Header Project and the first phase of the Permian Highway Pipeline Project both placed in service.
Stock Price:
Kinder Morgan's stock price had a high of 20.95 and a low of 14.25 in the last 52 weeks. Its current price is around 17.65, down from its 52-week high. Analysts have given the stock a consensus rating of buy, with a 12-month average price target of $21.00.
Key Valuation Ratios
Price-to-earning (P/E) ratio: The P/E multiple is currently valued at around 25.5, lower than the 5-year average P/E of 30.2.
Price-to-book (P/B) ratio: The shares trade at a P/B ratio of 1.32, which is lower than the industry average of 1.5.
Dividend yield: Kinder Morgan pays a quarterly cash dividend of $0.2725 per share, with a current dividend yield of 5.35%. This yield is higher than the industry average of 2.5%.