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A snapshot of Kinder Morgan

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A snapshot of Kinder Morgan

Kinder Morgan (KMI), a Houston-based energy company, is one of the largest midstream operators and energy infrastructure companies in the United States. It has the largest natural gas network in North America. This article will present a key overview of Kinder Morgan (KMI).

Kinder Morgan transports natural gas, refined petroleum products, crude oil, condensate, CO2 (carbon dioxide), and other products through 80,000 miles of pipelines. It also transloads and stores petroleum products, ethanol and chemicals, coal, petroleum coke, and steel in the company’s 180 terminals. In addition, the company produces and transports CO2, which is used for enhanced oil recovery.

Kinder Morgan operates primarily through the following five business segments.

  • Natural Gas Pipelines
  • CO2
  • Terminals
  • Products Pipelines
  • Kinder Morgan Canada
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The big consolidation

On November 26, 2014, Kinder Morgan consolidated these three operating subsidiaries: Kinder Morgan Energy Partners LP (KMP), El Paso Pipeline Partners LP (EPB), and Kinder Morgan Management LLC (KMR). The merger was valued at $77 billion.

KMP and EPB, Kinder Morgan’s two midstream MLPs, were dissolved following the mergers, and KMI remained as a C corporation. Read the details of the merger in Market Realist’s Kinder Morgan consolidates: What investors need to know.

One-year share price

Kinder Morgan (KMI) shares are currently trading at ~$40 per share. In the past year, KMI stock price increased ~27%. The other major midstream company, Williams Companies (WMB), increased 18%.

In comparison, Spectra Energy Corp. (SE) and Enterprise Products Partners (EPD) decreased 5% and 3%, respectively.

Kinder Morgan makes up 4.3% of the Energy Select Sector SPDR ETF (XLE).

Change of guard

Effective June 2015, Steven J. Kean will replace Richard Kinder as CEO (chief executive officer) of Kinder Morgan (KMI). Kinder, who has been chairman and CEO since 1997, will continue serving as executive chairman.

In the following sections, we’ll take a look at Kinder Morgan’s assets in detail.

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