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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (53598)	3/15/2014 9:08:56 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78746

Re KMI - Would you say that that debt will be beneficial to KMI's longer term business performance Debt is part of the capital structure together with limited partner equity and General partner equity. The idea behind an MLP is to own low risk and stable long life cash generating assets, and juice the returns twice - first with debt and second by splitting the equity part into a limited partner and into a general partner part. KMI is actually a hybrid between limited partner and a pure general partner. I think it is important to understand how the above works, just looking at the numbers of the entire Kinder Morgan operation is not going to get you anywhere in terms or understanding the benefits or risks if owning a certain piece if the action.