Kinder Morgan Energy Partners LP (KMP)

Do not judge KMP by the P/E Ratio.

KMP is organized as a master limited partnership (MLP), meaning that it pays no corporate tax and offers a high yield for investors.

Typically, MLPs are not valued based on earnings and P/E ratios. For master limited partnerships, we calculate ratios using distributable cash flow (DCF) rather than earnings. The reason is that non-cash charges like depreciation and amortization are included in the earnings measure. These can be significant for MLPs because their assets typically throw off large non-cash depreciation charges.

Distributable cash flow is basically net income with non-cash charges added back. From this adjusted figure we subtract maintenance capital expenditures (CAPEX), which is a measure of how much money it costs annually to keep up, repair and maintain existing infrastructure. The final figure is a close approximation of how much cash an MLP actually has on hand to pay distributions to partners.

Kinder Morgan had distributable cash flows of $3.65 per share for 2007 and paid out a total of $3.48 in distributions. Over the next few years, KMP should be able to generate distributable cash flow growth of more than 10%. Meanwhile, the shares trade at roughly 15 times 2007 DCF, an attractive valuation for an MLP.

very stable stock... had it for many years and its continued a steady climb in annual return, as well as paying dividend thus tempering the markets downfall. has continuously outperformed the S&P.

Richard Kinder is a smart man. Bought out Enrons "old school" assets on the cheap. Markets in West Coast will continue to see growth b/c of CA pop. growth & therefore gas consumption. Oil price does not effect pipeline movments. Nice dividend to wait for the capital appreciation as it sits near 52 week low. Gotten hammered of late b/c of CapEx to build out pipelines over Rockies to connect West & midwest markets... which is actually a growth driver imho.

http://www.fool.com/News/Foth/2003/foth030131.htm Basically -- the company transports oil and other energy products. It makes money regardless of the price of the stuff. This is a classic dividend-growth pick

Flushing money through a pipeline. Connection to the Rocky Mountain gas fields will bring significant new income for KMP and many speculative minor gas plays in the area like TMR, GSCO and many others.

Dividend is strong in a lower interest rate enviornment. Stock was knocked down from $57.00 for no good reason except for the IPO of many new MLP companies that funds had to invest in.

price of natural gas and the price to transport it is not going down. great managment team.

Kinder has been performing well for a while, year over year their dividends have grown. The current dividend yield is close to 7%. The return on investment for the shareholder is pretty big.
The attractive lower interest rates will only help them in growing by acquisition or building new lines, facilities, terminals.

Kinder Morgan has a 6.3% yield, and a rush into Treasuries, which would likely happen if things went bad in Iran, will only increase this yield, Cramer said. In addition, the company has a big natural gas pipe, and "the distribution for natural gas should be boosted if Iran does something nutty" says Jim Cramer.

although the stock price has taken a beating over the past several months; one is highly rewarded by the dividend and significant higher earnings are in the future. Good time to buy more

This stock is included in the Morningstar "Dividend Portfolio," which I use as my core stock group. I highly suggest anyone interested in dividend income take a look at this grouping of quality stocks.

This stock has beat the S&P for the last ten years and has recently had a slight pullback. More importantly, it has raised its dividend 2X per year for the last ten years and as an LLP, the dividend has been mostly nontaxable. Management by Richard Kinder, has been excellent and has a significant interest in the company.

still a little too close to it's 52 week high may need to pull back and buy on the dip to feel warm & fuzzy on this one short term.

Well managed MLP with good dividend

With their contracts coming up, this company will do very well in 09. Good price to buy now.

Good inflation hedge, since KMP charges companies to use its pipelines and can raise rates like a utility, but without the regulation. Despite the dull-sounding nature of the business, the company is innovating by building pipelines that can carry ethanol. Not so long ago, we all thought the stuff could only be trucked.

Strong record of dividend increases. Looking for acquisitions.

With real money, this is best held in a non-tax advantaged account. Small amounts are OK in a tax advantaged account, see the KMP and MLP boards for discussion of how MLPs work tax-wise.

Great insulation from commodity pricing. Generates cash as a toll road for pipeline and midstream energy products. Best managed MLP in the business. Corporate culture founded on transparency and ethical conduct. Owned since 3/28/00 and will continue to hold until fundamentals, transparency, or management conduct changes.

Oil isn't going anywhere anytime soon. And the yield!!! They should call it Kinder Morgan Big Dividend Partners.

Dividend may appear attractive but is unsustainable at 270+ payout ratio. When the dividend gets cut, the multiple will fall as well causing this stock to fall out of favor.

Low cash position, increasing debt, and trading at significant premium to its industry (30+ for KMP versus ~20 for industry) leads me to believe that the stock is heading for a fall.

The most attractive characteristic of KMP is its low beta of ~.25 but the downward pressures on this stock come from its unsustainable payout ratio rather than overall market movement.

Despite the crashing market, KMP just keeps chugging along, as if oblivious to all around it. Is it overpriced? Heck, yeah. Does it matter? Apparantly not. Largely recession-proof, I see no reason to believe it will do any worse than the S&P.