Kinder Morgan (KMI) Stock Retreating on Slipping Oil Prices

NEW YORK (TheStreet) -- Shares of Kinder Morgan Inc (KMI) were retreating, lower by 1.81% to $39.06 on heavy volume in afternoon trading Friday, as both WTI and Brent crude trade in the red.

Falling oil prices are dragging down energy related stocks today after Saudi Arabia, the world's top crude exporter said it may raise production output to new record highs amid the global supply glut, Reuters reports.

Saudi Arabia said it was in talks with Indian buyers to supply more crude oil. The exporter could potentially surpass its record high production of 10.3 million barrels per day in May, Reuters noted.

Brent crude for July delivery was down 1.12% to $64.38 a barrel as of 12:55 p.m. ET today, while U.S. crude for July delivery was lower by 1% to $60.16 a barrel.

About 18.86 million shares have exchanged hands as of 1:02 p.m. ET today, compared to its average trading volume of about 8.01 million shares a day.

Houston, Texas-based Kinder Morgan owns and manages a diversified portfolio of energy transportation and storage assets, with an interest in approximately 37,000 miles of pipelines and 180 terminals.

Insight from TheStreet's Research Team:

Valuentum's Brian Nelson commented on Kinder Morgan in a recent post on RealMoney.com. Here is what Nelson had to say about the stock:

The facts have changed at Kinder Morgan  (KMI).

We're removing the company from the dividend growth portfolio right now! The entire position will be eliminated at $40 per share. What was once an optimistic view of the entity's decision to de-risk by consolidating its disparate master-limited-partnership structure has now turned into fear that the firm's equity may collapse.

From its overpriced valuation to its restrictive debt load to its poor dividend cushion ratio that warns of tremendous risks to its dividend growth plans, Kinder Morgan may turn into one of the worst-performing companies this year and into 2016.

We're getting out -- and in a hurry.

- Brian Nelson, '5 Reasons Kinder Morgan's Shares Are Vulnerable' originally published 6/11/2015 on RealMoney.com.

Want more information like this from Brian Nelson BEFORE your stock moves? Learn more about RealMoney.com now.

Separately, TheStreet Ratings team rates KINDER MORGAN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate KINDER MORGAN INC (KMI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

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

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