The graph below belongs in the ‘what where they thinking category’.
After Tuesday’s dividend massacre, it plain as day that Kinder Morgan (KMI) wasn’t the greatest thing since slice bread after all. That is, a ‘growth’ business paying rich dividends out of rock solid profit margins and flourishing cash flow.
In fact, it was just a momo stock on a borrowing spree.
During the 27 quarters since the beginning of 2009, the consolidated entities which comprise KMI generated $20.8 billion of operating cash flow, but spent $24.3 billion on CapEx and acquisitions.
So the ‘growth’ side of the house ended-up in the red by $3.5 billion. Presumably that’s because it was ‘investing’ for long haul value gains.
This post was published at David Stockmans Contra Corner by David Stockman ‘ December 10, 2015.
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