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Kinder Morgan Inc.KMICOMMENTNov 28, 2013Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
He sold all of his direct energy exposure Jan 31. He thinks there is a $55 to $60 for WTI going forward. He has a negative view of this sector going forward. Pipelines and mid-streamers is the place to be and there is a good story behind the return of capital, but it is simply a tough story. He would stay away from it.
Pipelines. If he didn't know the name of the stock, he would say it has built quite a nice base without any real euphoric volume. Doesn't know what will move this if it hasn't moved yet, but it looks like the risk would be to the upside, not the downside. If he owned it, he would continue holding, but if not, he would be a buyer. Dividend yield of 2.8%.
A pipeline giant. Got highly depressed and there were concerns around the balance sheet, and he thought management had really changed their tune as to where they were going to allocate capital. Instead of getting bigger at all costs, they started getting better. It resulted in a much better free cash flow yield, so he got into this one. Dividend yield of 2.6%.
Pipeline stock to take advantage of all the fracing in the US? Structure is a little different in the US. You have pipelines as well as MLP (Master Limited Partnership) structures. Often US pipelines will drop-down a lot of their assets into an MLP structure to be able to pay a higher dividend because of their tax nature. As a Canadian shareholder, there is some blocking that goes on, so you can’t participate in those without tax consequences. To get around that, she has a position in this company. A negative report caused the stock to drop significantly, which gave her an opportunity to invest. Have a pipeline in BC and are going to twin to increase capacity from 300,000 to about 900,000. 4.5% dividend yield.