Today’s Stock: Kinder Morgan, Inc. (KMI)Today’s Stock: Kinder Morgan, Inc. (KMI)
Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. It operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities.
The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel and feedstocks, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011.
Kinder Morgan, Inc. was founded in 1997 and is headquartered in Houston, Texas.
My Thoughts 💭My Thoughts 💭
Wow an LNG play! But I think Ansel selected this company for its oil and gas business. I never heard of this company thus a quick review of the fundamentals will determine if this is a good business to give sats to.
At 47.7k sats per share ($68,725), and a 1.7k sat per share yearly dividend. It would take 28 years to break even.
The company trades at a PE 24 which means investors are paying $24 access $1 of earnings. Currently selling at an elevated P/E but nothing that should spook value investors.
Let’s review some key fundamentals to determine if this stock is worth spending sats on.
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The fundamentals of this company are bad.
The balance is abysmal, the growth prospects are terrible (projected to grow way slower than bitcoin), shares are mostly owned institutional investors, and yet the stock is trading at an elevated P/E.
A few positives include the dividend payments, the massive amount of free cash flow and the modest leadership team which doesn’t have crazy compensation packages.
From a Bitcoiner perspective. Paying 47k sats isn’t the worst investment you can make. But I personally would not bother. Even with the coming boom will KMI be in place to capture some of that upside? Not sure in willing to bet sats on that.
Here is the performance according to Simply Wall Street
Energy will play a major role in re industrializing America thus KMI may very well indeed get its pump. But against bitcoin it’s hard to recommend this stock as a good investment.