TGE - Why Kinder Morgan Won't Chase Expansion Projects
Kinder Morgan (NYSE: KMI) delivered solid growth last year -- its cash flow rose 6% overall and 5% on a per-share basis. That pace will moderate considerably this year to slightly above 2%. While that's largely because the company closed the sale of its stake in Kinder Morgan Canada and the U.S. portion of the Cochin Pipeline to Pembina Pipeline in December, concerns about its growth profile have emerged over the past few quarters. Driving those worries is the shortage of new project announcements from the company.
Its management team, however, made it clear on the fourth-quarter conference call that they're not concerned. They believe the energy company can keep finding high-return investment opportunities. Though, even if they can't, Kinder Morgan still has plenty of ways to deliver value to shareholders.
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