Boston, MA 03/18/2014 (wallstreetpr) – Kinder Morgan Inc (NYSE:KMI), a pipeline transportation company, mainly runs through fee-based energy assets. It owns and operates through Kinder Morgan Energy Partners (KMP), El Paso Pipeline Partners (EPB) and Kinder Morgan Management (KMR). The company experiences a downfall in stock prices due to trouble across pipelines. In last 12 months, the stock price fell by nearly 13% and last traded at a price of $31.68. Despite a fall in stock price, company expects positive growth across its business segments due to strong fundamentals.
Investment across growth projects
In 2014, Kinder has already identified a number of projects to grow organically over next 5 years. The company plans to invest approximately $14.8 billion in expansion and joint ventures to enhance their growth potential. It includes the fee based pipelines, terminals and associated facilities. In December 2013, KMP has already acquired crude oil tankers for $962 million that are used in marine transportation for the U.S. domestic trade and expects north to south contracts on natural gas transportation by April 2014. Company expects exceptional growth across KPM businesses including infrastructure for oil, gas and liquids.
Long term growth
Kinder Morgan Inc (NYSE:KMI) is expects to declare a dividend of $1.72 per share in 2014, up by 8% over last year. This is due to continued strong performance reported by its subsidiary KMP and EPB. KMP expects cash distributions of $5.58 per unit for 2014; up by 5% compared to last year due to the positive impact resulted from tanker acquisition, incremental growth over transportation contracts and additional long-term contracts with EPB. On the other end, EPB expects to declare cash distributions of $2.60 per unit for 2014, up by 2% compared to last year. KMR also expects to declare distributions of $5.58 per share for 2014 as a result of additional of KMR shares.
Conclusion
Kinder Morgan Inc (NYSE:KMI) has attractive growth projects in a diversified midstream energy transportation infrastructure. It provides stable cash flow to the company. Company operates in one of economically sensitive business that depends mostly on commodity prices, crude oil production volumes and regulatory changes.
