Executive Decision: Richard Kinder
In his second "Executive Decision" segment, Cramer spoke with Richard Kinder, chairman and CEO of Kinder Morgan Energy Partners (KMP), the oil and gas pipeline operator with over 80,000 miles of pipelines and a 6.7% yield. Kinder Morgan is up 132%, including reinvested dividends, since Cramer first recommended the stock in 2007.
Kinder said the growth opportunities for his company have never been better, as evidenced by the $14.4 billion backlog of projects Kinder Morgan is waiting to build. He said the Marcellus shale, in particular, is a terrific opportunity given its close proximity to the power-hungry northeast U.S. He said electric generators in that region need more capacity and Kinder Morgan is working to provide it. He also noted that his company is connecting into eastern Ontario, which itself is another big opportunity.
Kinder also have great things to say about the Permian and Eagle Ford areas of the country. He said his company is working towards moving over 250,000 barrels of product a day from those areas.Turning to the larger picture, Kinder said continental energy independence is coming for North America, thanks to the many new oil and gas finds in the U.S. He said even without help from Washington, the industry is on its way and will get there soon. Cramer said Kinder Morgan has been a great American company in which to invest.