Kinder Morgan (KMI) Stock Down After Mixed Q2 Results

Kinder Morgan (KMI) stock is down in afternoon trading after the company posted decreased revenue for the 2016 second quarter.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Kinder Morgan (KMI) - Get Report are plunging by 5.12% to $20.96 in afternoon trading on Thursday, after the company reported mixed fiscal 2016 second quarter results after Wednesday's closing bell. 

The Houston-based pipeline company reported earnings of 15 cents per share, which was in line with analysts estimates. Sales came in at $3.14 billion compared to analysts projected $3.45 billion.

Last year, Kinder Morgan posted earnings of 15 cents per share on revenue of $3.46 billion for the second quarter.

To investors' disappointment, the company's dividend remained stagnant at 12.5 cents per share, the same as the previous quarter. It expects to pay out 50 cents per share to investors this quarter and use the cash in excess of dividend payments to fund future growth projects.

"We continue to expect our 2016 distributable cash flow in excess of our dividends will exceed our 2016 growth capital expenditures, eliminating our need to access the capital markets to fund growth projects in 2016," said Executive Chairman Richard D. Kinder in a statement. 

This month, Kinder Morgan announced a partnership with the Atlanta-based electric provider Southern Company (SO) wherein the company purchased a stake in Kinder Morgan's natural gas pipeline system for $1.47 billion. 

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate KINDER MORGAN INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.

You can view the full analysis from the report here: KMI

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