The fall in the price of Kinder Morgan’s stock has caught my attention. The former MLP, which has delivered returns of near 20% annually since CEO and Chairman Richard D. Kinder purchased hard assets from Enron two decades, has seen its share price come under stress. The reasons for the decline have been fundamental, psychological, and political.
The general trend from $44 per share towards $29 per share has been due to legitimate concerns about the business.
First, the bad news:
It is true that Kinder Morgan has seen 12% declines in revenues in the past year, as the price of transporting oil, chemicals, and other commodities has come down a bit alongside the decline in the prices of commodities themselves (because oil that makes sense to ship at $70 per barrel doesn’t make sense to ship at $50 per barrel.)
Kinder Morgan does not pass Benjamin Graham’s balance … Read the rest of this article!