Kinder Morgan is a large and famous energy infrastructure corporation based in the United States. It operates some 85,000 miles of pipelines and 152 terminals. Kinder Morgan’s pipelines transfer natural gas, crude oil, gasoline and carbon dioxide. The company’s terminals handle and store chemicals and petroleum products. Generally, Kinder Morgan operates as a huge toll road and receives a commission for its services, eliminating the commodity price risk. The company’s major customers include large oil companies, local distributors and energy producers.
Richard D. Kinder, one of Kinder Morgan’s co-founders, is Executive Chairman. He receives a nominal salary of just $1 a year and owns around 11% of Kinder Morgan. Steven J. Kean is President and Chief Executive Officer, responsible for developing and delivering the company's strategy and allocating capital to its various business units. Another key figure is Kimberly Allen Dang, who is Vice President and Chief Financial Officer.
The company was founded as Kinder Morgan Energy Partners in 1997. Two years later it conducted a reverse merger with pipeline company KN Energy, acquiring Natural Gas Pipeline Company of America as part of the transaction. In 2006, Kinder Morgan announced that it would go private in a management-led leveraged buyout, but in 2011 it resumed trading on the New York Stock Exchange following a huge IPO. Also in 2011, Kinder Morgan agreed to buy El Paso Corp for $21.1 billion – a deal which transformed the company into the biggest U.S. pipeline operator. In 2014 Kinder Morgan took full ownership of its partially owned subsidiaries in a deal worth $71 billion.
The Kinder Morgan share pricereached a high of over $44 in April 2015, but then crashed to just $13 in January 2016. A big factor here was the company’s drastic dividend reduction in 2015, which sent many investors elsewhere. The shares ended 2017 at around $18. To find out how the shares are doing right now, follow Capital.com. Our KMI chartputs all the information at your fingertips.
Kinder Morgan is positive about the future, saying that the “revolutionary” shale industry is creating a huge need for more energy infrastructure – which bodes well for the company. It adds: “We remain bullish on the future of natural gas and believe that it will be the fuel of choice in North America for many years to come.”
Kinder Morgan’s full year 2017 earnings fell 4%, due mainly to the sale of a 50% stake in the Southern Natural Gas pipeline. However, they were about $2 million ahead of expectations.Earnings in the terminals segment increased 4% to $317 million.
Kinder Morgan is headquartered in Houston, Texas, and has approximately 11,000 employees. Its 70,000 miles of natural gas pipelines are connected to every key natural gas play and supply area including Marcellus, Bakken, Utica, Haynesville, Fayetteville and Barnett. Among its other key assets are large liquids terminals on the Houston Ship Channel and in New York Harbor, Los Angeles Harbor and Edmonton, Alberta.
Kinder Morgan shares are traded on the New York Stock Exchange (NYSE), and they’re a constituent of both the S&P 100 and S&P 500 indices. Check out Capital.com for the latest KMI chart. We’ll keep you up to date and in the picture.
Start trading today
CFDs allow you to benefit from all the price fluctuations of a product without ever having to own the product itself. Never worry about liquidity issues, or whether an exchange is down, by trading CFDs.
Our revolutionary AI technology helps you be a better trader by highlighting if you’re trading with a bias.
Our state of the art app is designed with you in mind providing great execution as standard. Personalise it so you can do everything you want instantly.
Investmate brings you personalised, up to date educational material on the go, to help you avoid biases, and become a better trader.
We focus on providing you with peace of mind. Negative balance protection ensures your losses will never exceed what’s in your account.
We cover all the charges so you can keep more of your money to trade the markets
We’re here 24 hours a day for you. Anything that you need, we are here to solve