This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Kinder Morgan Holds Steady After IPO

NEW YORK ( TheStreet) -- Shares of pipeline transportation and energy storage company Kinder Morgan (KMI) have been ticking lower since its first-day closing price, but remains above its initial public offering price of $30.

Shares of the company were flat at $30.93 during afternoon trading.

"As new issues trade, there's a lot of dancing and courting by investors and the company," said financial modeling and valuation expert Scott Rostan, a principal and founder of training at Training The Street and Merrill Lynch alum. "There's a natural ebb and flow that often happens."

Rostan added that the weakness can also be attributable to a healthy run-up in the market in general -- and profit taking. That the stock continues to trade above its offering price is a good sign, he noted.

Kinder Morgan made its debut as one of the hottest IPOs so far this year. Last Friday, the day after its price offering was announced, shares of the company ended the trading session at $31.05, up 3.5%.

Morningstar analyst Jason Stevens noted in a report that he thinks Kinder Morgan will be able to raise dividend payments by nearly 11% annually, from the annualized $1.16 figure Morningstar expects for 2011. The analyst is impressed with Kinder Morgan's assets, which he describes as "attractive, consistent cash-flow generators."

Last Thursday, the company said its initial public offering of 95.5 million shares was priced at $30 -- above the expected range.

The company had expected to offer 80 million shares.

In total, the company raised $2.9 billion from the IPO.

If overallotments are exercised, the deal could raise up to $3.3 billion, making Kinder Morgan's IPO the largest energy IPO of the decade and the largest IPO this year, Stevens noted in his report.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,171.82 -107.92 -0.62%
S&P 500 1,993.77 -16.63 -0.83%
NASDAQ 4,523.0180 -56.7710 -1.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs