Kinder Morgan 101: Knowing Which Kinder Morgan Company Is Right for You

Source: Kinder Morgan

Investors search for days and months for the perfect opportunity. When we find it we don't want to be bogged down with another set of choices as to how to invest in that opportunity. But that is the very issue facing many investors considering an investment in one of the Kinder Morgan (NYSE: KMI  ) family of companies. With four ways to invest, including MLPs Kinder Morgan Energy Partners (NYSE: KMP  ) and El Paso Pipeline Partners (NYSE: EPB  ) , as well as a limited liability company in Kinder Morgan Management (NYSE: KMR  ) , it's tough to choose which option is the best.

Because of this many investors choose to simply pass on Kinder Morgan, tossing the company in the "too hard" pile and missing what could be an exceptional investment opportunity. Other investors choose the wrong Kinder Morgan entity for their situation by adding units of Kinder Morgan Energy Partners when the MLP isn't the best option for their situation as Kinder Morgan Management is the entity that would have made better sense. Then  there is El Paso Pipeline Partners, which is an entity that enables investors to invest in a pure-play opportunity that could be very lucrative over the long term, but is missed because of complexity of the situation.

To help investors make sense of the Kinder Morgan family of companies I created the following slideshow presentation. It's designed to help give a better visual reference of what an investment in each Kinder Morgan company represents. It also details some of the pitfalls and opportunities of investing in MLPs like Kinder Morgan Energy Partners and El Paso Pipeline Partners, as well as why someone would invest in Kinder Morgan Management over Kinder Morgan. 

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Matt DiLallo

Matthew is a Senior Energy and Materials Specialist with The Motley Fool. He graduated from the Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries:

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12/31/1969 7:00 PM
EPB $0.00 Down +0.00 +0.00%
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Kinder Morgan CAPS Rating: *****
KMP $0.00 Down +0.00 +0.00%
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KMR $0.00 Down +0.00 +0.00%
Kinder Morgan Mana… CAPS Rating: *****