The pipeline giant Kinder Morgan (NYSE: KMI) is considered to be one of the largest midstream gas and oil companies in North America. With the natural gas an oil prices are struggling, now it is the best time to check and see how the leader of this industry is doing. The second quarter earnings of the company have been released in the end of the July month which will help you to determine whether the stock of the company is a buy or not. In case, if you are going to buy as stock, it is important to know about the basics of the stock market. After gaining knowledge, you can make some sound decision.
Know about the Return On Capital Employed
You should know that ROCE will be used to measure the return of the company generates from the capital employed in the business. It is a fact that the better and best business will be having a higher ROCE. It is considered to be one of the useful tool for the investors. While making comparison, most of the investors might find it is very useful for them. the ROCE of the Kinder Morgan appears to be below the average of 7.7% in the gas and oil industry.
The dividend
In the last quarter, the company(nyse kmi) was able to raise the dividend for about 5 percent which is 1.05 dollars annually. They are having the plan to raise the annual dividend to 1.25 dollar per share in the present year. The company has shown that they are going to take the dividend and debt more seriously comparing with the past. Considering all these things, the expectations of the company for the year is not that much bad. They now have1.7 billion dollars in expanding their project capital. Hence, there will be a decent expectation in this current year.
Progress of the project
The cash conservation of the Kinder Morgan (NYSE: KMI)has not impacted the progressover the anticipated Permian Highway Pipeline project.This project is supported by the reliable and predictable long-term contracts of Kinder Morgan company with a take or pay fee structure. They said that it is almost 79 percent of the project is done with the pipeline and 97 percent done with the compression of the mainline. As an investor, if you are having an eye on the stock of the Kinder Morgan, then it is time to buy the stock at the great price. Take strong decision before investing in any stock like NYSE: VMW.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.