"Kinder Morgan Energy Partners L.P. (NYSE: KMP) is a paragon of consistency; the stock continues to rise and the company continues to deliver on its expectations," says Jack Adamo.

In his Insiders Plus newsletter, he explains, "The master limited partnership has made great strides in cost controls to compensate for the weak economic environment. When things turn around, it could really take off."

"KMP is one of the largest and most respected pipeline and energy storage LPs in North America. It operates or owns interests in more than 26,000 miles of pipelines and 170 terminals.

Continue reading Kinder Morgan Energy (KMP): 'Paragon of consistency'

Kinder Morgan Energy (KMP): 'Paragon of consistency' originally appeared on BloggingStocks on Tue, 04 Aug 2009 11:40:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"Given Obama's statements regarding raising qualified dividend and long-term capital gains, tax-deferred dividend income, like that provided by master limited partnerships (MLPs) such as Kinder Morgan Energy Partners (NYSE: KMP), should look very attractive," Carla Pasternak, editor of High Yield Investing.

"Under Obama, the current Bush tax cuts would appear to have little likelihood of being extended, suggesting that dividends will again be taxable as ordinary income, at a tax rate of up to 35%. Capital gains will also be taxable at the top rate of 20%.

"However, the corporate structure of master limited partnerships generate cash flow that's considered a return of capital. Instead of being taxed as a regular dividend, returns of capital instead reduce your cost basis -- meaning you won't have a tax liability until you sell the security.

"Typically, MLPs pay out around 75-90% of their distribution as tax-deferred return of capital. The balance is treated as taxable income, even in an IRA type of account. For that reason, MLPs are suited for a taxable brokerage account.

"Almost any tax-advantaged MLP could protect your portfolio from the higher tax rates. I've zeroed in on Kinder Morgan because of its superior dividend yield of around 7.5% and strong dividend growth history fueled by growing cash flow.

"Kinder Morgan is one of the largest owners and operators of energy-related pipelines and storage facilities in the U.S.

Continue reading Obama stock: Boost yields with Kinder Morgan MLP (KMP)

Obama stock: Boost yields with Kinder Morgan MLP (KMP) originally appeared on BloggingStocks on Thu, 09 Oct 2008 09:50:00 EST. Please see our terms for use of feeds.

"Despite sharp intermediate setbacks, the bull market in energy is far from over," says Martin Weiss, editor of the Safe Money Report. Here, he looks at Kinder Morgan Energy Partners LP (NYSE: KMP).

"Earlier, there was some concern that a U.S. recession would dampen worldwide demand for oil, and that could still happen. But right now, the rapidly increasing consumption of crude oil by emerging markets is actually exceeding any declines in industrial nations.

"Kinder Morgan is an energy partnership that transports more than 2 million barrels of energy products every day - gasoline, jet fuel, natural gas liquids and more. It has two additional profit centers: Mammoth oil and gas storage facilities and a business supplying carbon dioxide, which is used to boost production from aging oilfields.

"All three of these businesses can be extremely lucrative in a rising oil market like this one. That's how KMP generated a record profit of $347 million in the first quarter - a big swing from a year-earlier loss of
$150 million.

"Partnerships like Kinder pay out quarterly dividends to 'unit holders' - the equivalent of shareholders in traditional public corporations. And KMP's latest payout is 96 cents per unit, up from 92 cents in the prior quarter and 83 cents a year earlier. The indicated yield is a hefty 6.5%.

"As much as we like KMP, we recognize that energy shares may be extended and could pull back in the near term. So here's what we suggest you do: Buy a half-position in KMP this month. Then hold back an equivalent amount of cash earmarked for a possible second bite at the apple later."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Gushing gains: Income and growth at Kinder Morgan (KMP) originally appeared on BloggingStocks on Tue, 20 May 2008 13:01:00 EST. Please see our terms for use of feeds.

"We don't have to leave the US to find plenty of bargain buys in partnerships and pass-throughs," says Neil George in his new specialty service designed for income investors, The Partnership Letter.

In his search for "solid, heavy-cash-generating assets," the advisor takes a look at two of his new portfolio holdings, Kinder Morgan Energy Partners (NYSE: KMP) and Kinder Morgan Management (NYSE: KMR).

"Right now plenty of partnerships and pass-through entities in the US and around the world are down in price. The real work comes in finding and buying partnerships that have solid, heavy-cash-generating assets that make for bargains.

"And they need to pass two other tests. The first is that they need to be financially sustainable. With the ongoing credit crunch, partnerships we own need to be able to carry themselves without having to face a cash crunch.

"The second test is one of business sustainability: Can the operation behind the partnership keep running and expanding even if the global economy slows? are widely held by investors. And though neither has been relegated to the bargain, both represent solid deals.

Continue reading Income expert focuses on 'partnership' profits in energy

Income expert focuses on 'partnership' profits in energy originally appeared on BloggingStocks on Wed, 27 Feb 2008 10:48:00 EST. Please see our terms for use of feeds.

"Contrary to popular belief, CO2 isn't simply a useless pollutant; in fact, the gas is used to produce oil via a technique known as a CO2 flood," says Neil George and co-editor Elliott Gue in Personal Finance.

To invest in the trend toward increased usage of CO2 floods, the advisors look to the leader in storage and transportation of this gas, Kinder Morgan Energy Partners (NYSE: KMP), a master limited partnership (MLP).

The advisors explains that CO2 gas is already used to produce more than 200,000 barrels of oil per day in the US alone, employing the CO2 flood. This involves pumping CO2 under pressure into oilfields to squeeze additional production out of older, depleted fields.

Says George and Gue, "With oil prices above $60, there are plenty of opportunities for producers to further expand the use of CO2 floods." They add, "That's great news for companies that handle the transportation and storage of CO2 for enhanced oil production." Topping that list, the suggest, is Kinder Morgan Energy Partners, the largest transporter and marketer of CO2 in the US.

Continue reading Kinder Morgan: Profits from CO2

Kinder Morgan: Profits from CO2 originally appeared on BloggingStocks on Wed, 13 Jun 2007 13:15:00 EST. Please see our terms for use of feeds.