Kinder Morgan Energy Partners
Kinder Morgan Energy Partners vital stats
|Operations||The company owns energy pipelines, storage facilities, and oil wells.|
|Market Cap||$22.7 billion|
|Trailing P/E Ratio||51.01|
|Return on Equity, Last 12 Months||19.1%|
Source: Yahoo! Finance and Capital IQ, as of Jan. 27.
When it comes to a core stock worth owning, could you really ask for anything more? As it turns out, you just might get your chance at more of the same in the near future.
The general partner re-IPOs
Thanks in large part to the tax and legal complexities involved in running a partnership, Kinder Morgan has long had a convoluted corporate structure. In addition to the limited partner units, there's another publicly traded, deeply intertwined business, Kinder Morgan Management
As a partnership, there's a general partner stake involved in the Kinder Morgan family, as well. That stake is owned by regular old Kinder Morgan, once publicly traded, but taken private about four years ago. But with leveraged buyout owners like Goldman Sachs
Re-IPOs of companies formerly owned by leveraged buyout agreements can be risky, since the debt acquired to support the buyout can severely hamper a company's future flexibility. That said, founder and CEO Richard Kinder expects to keep a 31% stake in the company. Given that huge vote of insider confidence, and the giant, cash-generating pipeline behind it, Kinder Morgan might be one re-IPO worth looking into owning.