NEW YORK , Dec. 9, 2014 /PRNewswire/ -- Analyst Report Issued by Small Cap IR -- Kinder Morgan Incorporation (NYSE-MKT: KMI) is the largest energy infrastructure company in North America with an enterprise value of more than $125 billion. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. The pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide (CO2) and more. The company also stores or handles a variety of products and materials at its terminals such as gasoline, jet fuel, ethanol, coal, petroleum coke and steel.
The company's customers include major oil companies, energy producers and shippers, local distribution companies and businesses across many industries. In most of its businesses though, Kinder Morgan(KMI) operates like a giant toll road and receives a fee for its services, generally avoiding commodity price risk.
The two major commodities serviced by Kinder Morgan(KMI) are oil and natural gas, respectively accounting for 34% and 54% of 2014 earnings. However, the company has been more resolute in the face of the oil sell-off. As the firm's contracts are major drivers of the stock price performance regardless of natural gas and oil price performance, its cash flows remain stable, avoiding commodity price revenue risk. Given current energy price movements, Kinder Morgan(KMI) stands out as a stable name in a world of volatility, and can provide some peace of mind in an energy-exposed portfolio.
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