Author Topic: KMI - Kinder Morgan  (Read 138379 times)

Spekulatius

  • Hero Member
  • *****
  • Posts: 1883
Re: KMI - Kinder Morgan
« Reply #430 on: May 29, 2018, 10:09:11 AM »
I canít understand the reaction of KML.TO to this news either and hence bought some KML stock. Looks like a fair deal and win- win to me.
To be a realist, one has to believe in miracles.


Spekulatius

  • Hero Member
  • *****
  • Posts: 1883
Re: KMI - Kinder Morgan
« Reply #431 on: May 29, 2018, 04:44:38 PM »
KML looks quite interesting. If KM CA makes ~200M in EBITDA it means that KML share would be 39% of this or 60M or roughly 60c/share. Now KML will receive 12.5 CAD in cash proceeds for a 16.2CAD share price.

The question is what is KMI going to do with KML. The current structure makes no sense and is also tax inefficient. KMI could either buy thr minority KML holders out, or they could sell the bulk all or of the remainder of the company to KML shareholders. Current equity of KMI in their Canadian business is 2.1B CAD, so KML with 1.25B CAD and adding the remainder in debt could buy them out (depending on premium to book).

This would make sense to KMI because KMI itself is cheap (they could buy back stock with the proceeds or deleversge) and holding KML as a Canadian C-Corp isnít tax efficient for KMI.
To be a realist, one has to believe in miracles.

wisowis

  • Jr. Member
  • **
  • Posts: 52
Re: KMI - Kinder Morgan
« Reply #432 on: July 19, 2018, 05:45:59 PM »
Q2 Results for KML: https://ir.kindermorgancanadalimited.com/2018-07-18-Kinder-Morgan-Canada-Limited-Declares-Dividends-and-Announces-Results-for-Second-Quarter-of-2018

- Adjusted EBITDA was $107.8 million, up from $91.5 million in the previous period.
- For the first half of 2018, KML generated net income of $58.1 million, Adjusted EBITDA of $205.8 million, and DCF of $168.8 million.
- KML expects the transaction to close late in the third quarter or early in the fourth quarter of 2018. 
- Eliminates 3% market discount for the DRIP.

JRM

  • Full Member
  • ***
  • Posts: 151
Re: KMI - Kinder Morgan
« Reply #433 on: July 20, 2018, 04:34:26 AM »
It sounds like KMI management is open to selling KML based on answers given to the analysts during the conference call. 

wisowis

  • Jr. Member
  • **
  • Posts: 52
Re: KMI - Kinder Morgan
« Reply #434 on: September 14, 2018, 05:38:19 PM »