2023-04-24 07:15:00 ET
Kinder Morgan's (NYSE: KMI) management team believes it offers investors a compelling investment proposition. On its recent first-quarter conference call, several senior leaders laid out the case of investing in the company. CEO Steve Kean summed them up into a few main points. Here are the many reasons why they believe the company makes a great investment.
Kean began his overview by stating, "Our balance sheet is strong...We built our budget for this year with balance sheet capacity available to enable opportunistic share repurchases and incremental investment opportunities at attractive returns, and we have done both."
Kinder Morgan entered 2023 with tremendous financial flexibility. It ended the first quarter with a net debt-to-adjusted EBITDA ratio of 4.1 times, well below its 4.5 times target. The company estimates that it has $770 million of investment capacity for every 0.1 times it's below its target, implying it currently has over $3 billion of spare capacity. That's giving it the flexibility to opportunistically repurchase shares (it bought back 6.8 million for $113 million in the first quarter) and sanction additional high-return expansion projects (it added about $400 million to its backlog in the period).
For further details see:
5 Reasons Kinder Morgan Stock Is a Screaming Buy