Kinder Morgan (KMI 2.09%) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons why he's holding on to Kinder Morgan's stock despite the company's modest decline since he bought it earlier this year.
Key balance-sheet and cash-flow measures for the companies that make up Kinder Morgan
| Entity | Debt to Equity Ratio | Cash from Operations (millions) | Cash Dividends or Distributions Paid (millions) | Operating Cash Available for Capital Expenditures (millions) |
|---|---|---|---|---|
| Kinder Morgan | 1.3 | $3,645 | $3,156 | $489 |
| Kinder Morgan Energy Partners (NYSE: KMP) | 1.2 | $3,491 | $3,033 | $458 |
| El Paso Pipeline Partners (EPB) | 2.1 | $866 | $714 | $152 |
| Kinder Morgan Management (NYSE: KMR) | 0.0 | $0 | $0 | $0 |
Kinder Morgan is a complicated business. Understanding the interaction between El Paso Pipeline Partners, Kinder Morgan Energy Partners, Kinder Morgan Management, and Kinder Morgan is critical to understanding how the company generates the cash it uses to pay its dividends. The chart below, from a recent investor presentation, shows how the different pieces fit together.
Chart from Kinder Morgan investor presentation dated September 12, 2013 .
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