Kinder Morgan (KMP) and Google Finance: A Look Back

Kinder Morgan, Inc. (KMI) is one of the largest energy infrastructure companies in North America. However, the ticker symbol “KMP” no longer represents a publicly traded entity. Previously, KMP referred to Kinder Morgan Partners, L.P., a master limited partnership (MLP) that was part of the Kinder Morgan family of companies.

Google Finance, like many financial data providers, maintains historical data for KMP. Users can still search for “KMP” on Google Finance and view historical stock prices, charts, and related news. This historical data is valuable for understanding the company’s past performance, especially leading up to its significant restructuring in 2014.

The Restructuring and KMP’s Demise

In 2014, Kinder Morgan underwent a major simplification, consolidating its various publicly traded entities – including Kinder Morgan Energy Partners (KMP), Kinder Morgan Management LLC (KMR), and El Paso Pipeline Partners (EPB) – into a single corporation under the ticker symbol KMI. This was a significant event in the energy infrastructure sector. The restructuring aimed to streamline the company’s corporate structure, reduce its cost of capital, and simplify its financial reporting.

As a result of this consolidation, KMP ceased to exist as a separate publicly traded entity. Shares of KMP were exchanged for shares of KMI. Consequently, while historical data for KMP remains on Google Finance, it’s important to understand that it represents the performance of the MLP before the restructuring.

Using KMP Historical Data on Google Finance

Researchers, analysts, and investors might find KMP’s historical data on Google Finance useful for several reasons:

• Understanding the MLP Model: KMP’s performance as an MLP can provide insights into the dynamics and challenges of the MLP structure, particularly its tax implications and distribution requirements.
• Analyzing the Impact of the Restructuring: Comparing KMP’s performance before and KMI’s performance after the 2014 restructuring can illustrate the potential benefits (and drawbacks) of corporate simplification.
• Benchmarking: KMP’s historical performance can serve as a benchmark against other energy infrastructure companies, particularly those structured as MLPs or corporations.
• Valuation Analysis: Historical financials and trading data can be used to build financial models and assess the intrinsic value of KMP prior to its absorption by KMI. This can provide context for understanding KMI’s current valuation.

Important Considerations

When using KMP historical data on Google Finance, it’s crucial to remember that it only reflects a portion of the Kinder Morgan story. To get a complete picture, you need to consider:

• The Restructuring Event: Account for the significant impact of the 2014 consolidation on the financial performance and strategic direction of the company.
• KMI’s Performance: Analyze the performance of KMI, the surviving entity, to understand the company’s current state and future prospects.
• Industry Trends: Consider broader trends in the energy infrastructure sector, such as changes in commodity prices, regulatory policies, and technological advancements.

In conclusion, while KMP is no longer an active ticker, its historical data on Google Finance provides a valuable snapshot of a specific era in Kinder Morgan’s history and the broader energy infrastructure landscape. Understanding the context of the 2014 restructuring is essential for interpreting this data accurately and using it effectively for research and analysis.