Kinder Morgan Energy Partners (KMP) is in the business of storing and transporting Oil & gas and related 
products (including ethanol). They’ve got 5 divisions specializing in different areas, but for the most part they all have this great feature in common–they can make money in the oil and gas business regardless of whether the price of the underlying products are rising or falling.
Since their major focus is on transportation, the big issue for them is “How much of the product is being used?” Rather than thinking of them as being in the oil and gas business, it might help to think of them as operators of a toll highway–as long as traffic is good, they’re in good shape.
Just how good might surprise you. As I write this, they’re paying a dividend of over 8%. Better yet, KMP might let you sleep at night. Check out their price chart over the last 5 years. They’ve experienced no where near the volatility that most of the market has suffered.
KMP may eventually suffer as we run out of these fossil fuels, but I think we’re a long way from that point. Before we reach it, I think a whole lot of more expensive reserves will be found and exploited.
KMP has the number 2 spot on my “to buy” list. What do you think?
oil and gas pipelines
gas, mlp, oil, pipelines, terminals