Sign Up Now!
Back to Results
Note: Only one slide is currently available because you are not currently logged in.
UBS 2012 Natural Gas, Power & MLP Conference
| David Kinder | Page 7 of 11 |
October 21, 2016
View in Results
View Full Document
Slides may show historical information no longer relevant. All slides to be viewed in context of the entire presentation and time. See
KMR Discount to KMP Management Purchases of KMR / KMP (c) -20% -15% -10% -5% 0% 5% 10% Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 ? IPO 5/14/2001 $8.1 $4.5 $0 $2 $4 $6 $8 $10 KMR KMP (millions) __________________________ (a) All figures through / as of 2/24/2012; see footnotes on slide 11 for explanation of total return calculations (b) Calculation of share dividend: KMP quarterly cash distribution per unit divided by KMR 10-day average price prior to x-date = fractional share paid for every KMR share owned, e.g. $1.16 / $78.046 = 0.014863 share; example reflects actual KMR share dividend calculated for 4Q 2011 paid on 2/14/2012; refer to KMP 2011 10-K for more information (c) Purchase of KMR shares and KMP units by directors and officers of KMR/KMP since the KMR IPO in 2001, as reported in SEC Form 4 filings; 7:1 ratio excludes one open market purchase of KMP units relating to an arrangement requiring cash distributions for payment of interest 7 KMR is KMP ? KMR shares are pari passu with KMP units ? KMR dividend equal to KMP cash distribution, but paid in additional shares; effectively a dividend reinvestment program (b) ? Like KMP units, KMR shares are tax efficient — but with simplified tax reporting (no K-1s, UBTI) KMR is a significant entity ? KMR market cap = $8.2 billion, ~30% of total KMP capitalization ? ~$20 million in daily liquidity KMR has generated a 16.1% compound annual total return since ‘01 IPO, vs. 16.6% for KMP Although the KMR trading discount to KMP has narrowed, at 9.9% it still leaves substantial room for improvement EP transaction expected to lead to more KMR issuance ? Highlighting the security and further improving liquidity ? Potential for KMP to become self-funding through KMR dividend ? Possibility of KMR share buybacks if quarterly dividends exceed equity funding needs Insiders prefer KMR ? Management has purchased KMR at a rate of about 2:1 vs. KMP, or almost 7:1 excluding one transaction (c) KMR 101 (a)