A Quick Look at Kinder Morgan's Leadership

Kinder Morgan (NYSE: KMI  ) has returned 12% over the last year, but as we all know, past performances are not indicative of future returns. That's why I created a premium report on Kinder Morgan -- to help investors examine its future and decide if the company is still right for their portfolios.

Following is an excerpt from the report, which focuses on the main risks facing the company. It's just a sample of one section, but we hope you enjoy.

Leadership
CEO Richard Kinder is widely thought of as one of the best in the business. Working on an annual salary of $1, Kinder has built one of the most powerful – and important – midstream networks in the world.

Kinder Morgan began as a small operation in 1997 with a $325 million enterprise value. Rich Kinder has made smart, strategic decisions and built the company into what it is now: The third-largest energy company in the U.S. with an enterprise value of about $100 billion.

While some $1 CEOs may be more gimmick than substance, Kinder is the real deal. He parks in the same garage as his employees, and Kinder Morgan execs fly coach for business. Keep in mind that Kinder is one of the top 50 wealthiest Americans.

Kinder refuses to waste shareholders' money, and you can see that quite clearly in the companies' performance. Kinder Morgan Energy Partners (NYSE: KMP  ) and Kinder Morgan Management (NYSE: KMR  ) have a long, consistent history of strong returns to look at compared to KMI, which was public, then private, and then went public again in 2011. However, all three entities did perform well last year, as KMP returned 29%, KMR 26%, and KMI 11%.

Looking for more guidance?
That was just a sample of our new premium report on Kinder Morgan. If you're weighing whether the company is a buy or sell, the report is an essential resource for investors seeking more information on the company. Not only that, but the report also comes with updated quarterly guidance and dives into upcoming catalysts on the horizon. To get started, simply click here now.


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  • Report this Comment On January 01, 2013, at 8:52 AM, Sumflow wrote:

    You use this enterprise value of about $100 billion as a good thing. How can counting the same assets twice, be a reason for you to recommend this security.

    This looks like some kind of shell game you are promoting. If Company A has an enterprise value (EV) of 50 Billion, and Company A owns 25% of Company B which has an EV of 45 Billion. How can you show it as a combined EV of 95 Billion?

    It looks like you are counting the 25% that Company A owns in Company B twice?

    If Company A has been taken over for 50 billion it should not cost 45 billion more to buy out Company B because they already own 25% of it. This smells like Enron accounting.

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