Kinder Morgan (KMI), one of the unsung market stories of this decade, is on the comeback trail. We look at recent coverage on the stock as well as a company presentation from March and notice a few familiar themes that remind us of 2013 or 2014, before the crash in the stock happened. Have investors learned their lesson from last time around, and has the company?
Topics covered:
3:00 minute mark - KinderMorgan’s ‘insulation’ from commodity price changes, and how the correlations have played out 9:00 - Picking apart the picks and shovels thesis 18:00 - Management's blind spot around the business stability and the biases we all face 24:30 - Why does this have to be so complex? Looking to John Malone's example 30:45 - The insider buys story 35:45 - Opening up slide 25 and the estimates around returns 45:00 - The famed/infamous slide 49 and reconciling distributable cash flow to GAAP metrics 51:00 - Why the use of non-GAAP metrics affects the underlying business for Kinder Morgan