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After extensive research and analysis, we have come to the conclusion that the nation’s largest combined energy infrastructure company and oil producer  – Kinder Morgan – is a house of cards, completely misunderstood and mispriced.

We will release a full report with our thesis and supporting evidence on Tuesday morning, 9/10/2013, to all Hedgeye Energy clients.  At 11am EST that morning, we will host a brief call for clients to hit on the highlights of the report, and take Q&A.

Key topics that we will hit on:

  •  “Like a toll road” – except for that E&P segment that generates +20% of KMP’s segment DCF.
  • Cut “Sustaining CapEx” to the bone…  How does Kinder Morgan do it?
  • How “Certain” are KMP’s “Certain Items”?
  • KMP’s investor presentation “returns” vs. actual returns to the KMP unitholder.
  • Dissecting the complex corporate structure: KMI, KMP, KMR, and EPB.
  • The absurdity of the Incentive Distribution Right (IDR) and the incentives it really creates.
  • $78 BILLION of combined market cap sitting on top of $1.6 BILLION of tangible equity?  A complete valuation analysis.

We are convinced that the Kinder Morgan complex will eventually collapse.  In our view, it is not a matter of if, it is a matter of when.   We look forward to presenting our work, and the debate that is sure to follow.

Kevin Kaiser

Senior Analyst

***All Hedgeye Energy clients will receive the report and conference call dial-in information early Tuesday morning.  If you are not already a client and are interested in our work, please email .***