KMI Stock: Kinder Morgan a Steal After a Year of Battering

It has been an absolute bloodletting in the midstream oil and gas major limited partner space. As the bear market in oil prices has taken another leg down, everything even tangentially related to energy has gotten crushed. Even the blue chips with minimal exposure to prices have been left for dead. Kinder Morgan (KMI) and Enterprise Products Partners (EPD) are down 26% and 20%, respectively, since late April. And Teekay Corp (TK) is down by about a third during the same period.

Richard Kinder, the founder and chairman of Kinder Morgan, bought over $11 million in KMI stock in June and July. And since December 2013, Richard Kinder has spent $56 million of his own money buying shares. And he’s not the only one. Board member Fayez Sarofim dropped more than $17 million last month buying shares, and since December 2013, various Kinder Morgan insiders have plowed nearly $90 million into company stock. It’s worth noting that Richard Kinder takes no salary for his work as chairman. His only compensation is via the dividend on his vast holdings of KMI stock. So it’s in his best interests, as well as ours, to keep the dividend checks growing. After the recent rout, KMI stock is a steal. Use this lull as a buying opportunity.

Source: InvestorPlace

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