Kinder Morgan Predicts Future (KMP)

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By Douglas A. McIntyre Published
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Kinder Morgan Energy Partners (NYSE:KMP) announced this week that it expects to distribute $4.20/common unit as its dividend in 2009. The company will distribue $4.02/unit in 2008. The company based its projections on a crude oil price of $68/b in 2009.

Kinder Morgan noted that if crude prices averaged about $100, as theydid in 2008, it’s distributable cash flow would increase to around$4.52/unit. That’s about a penny of cash for each dollar increase inthe price of crude. Or a penny less for each dollar below decrease.

Either way, it won’t make much difference. Kinder Morgan includes itscommodity oil revenues in its CO2 segment, but the amount is smallcompared with the company’s fee-based pipeline and storage business.The company’s stock closed at $45.93 yesterday, off about 25% from its52-week high.

Paul Ausick
November 26, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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