***CALL TODAY AT 1PM EST. SLIDE DECK BELOW***
Short Kinder Morgan Energy Partners (KMP) remains a Hedgeye “Best Idea.” Our conviction has increased since first making the call in September 2013. Recent events, results, guidance, and new information continues to indicate that our analysis is correct.
“Cheap” is a LONG WAY DOWN. We believe Fair Values are:
- KMI: $13 - $17/share, ~57% Downside
- KMP: $31 - 47/unit, 51% Downside (Preferred Short)
- EPB: $16 - 24/unit, 39% Downside
- This puts Complex EV/2014 EBITDA at ~10-11x
CLICK FOR FULL SLIDE DECK: Short Kinder Morgan Thesis Update 1/31/14
CONFERENCE CALL TODAY AT 1PM EST.