Wednesday Night's Show Highlights:
Go for the toll takers, not the cars! Go with pipeline operator, Kinder Morgan, KMI!
Wednesday, October 22, 2014
We're now working on Thursday night's show now. To be posted shortly! THANK YOU!
Wed., Thurs. and Friday night shows, including the Game Plan for the coming week...
Jim: If you're looking for a way to play the North American energy renaissance that isn't all that vulnerable to the nasty decline in oil and natural gas that we've seen lately... albeit a decline that seems to have stabilized somewhat, at $80... then I think you want to own a pipeline company that works as a kind of toll road operator.
And the best pipeline operator in existence is now Kinder Morgan, Inc., KMI.
That's because this afternoon we learned that Kinder Morgan has received all of the necessary regulatory approvals for its long-awaited acquisition of all three of its master-limited partnership subsidiaries, which will create a gigantic pipeline company, as it transports tons of oil and natural gas, and I think one of the biggest carbon dioxide, when the shareholders vote on it a month from now.
In fact, with this transaction, Kinder Morgan will become the third-largest energy company in North America. Energy company, not (just) pipeline. As I've been saying since this deal was announced, the new Kinder Morgan is the kind of company that's coveted by money managers, because it gives you both growth and income. In terms of growth, the company sees $600 billion worth of pipeline projects that need to be undertaken in this country. And once it's consolidated into a single business, Kinder Morgan will be able to...