Kinder Morgan’s Worth $86 Due To Defensive And Diversified
Business Model  by Trefis Team Kinder Morgan Partners Rate   | 
votes   |   Share  Kinder Morgan Energy Partners (NYSE: KMP), a
subsidiary of Kinder Morgan Inc. (NYSE: KMI), is a diversified
energy company primarily engaged in pipeline transportation and
storage of petroleum products, ethanol, and natural gas in North
America. The firm’s other businesses include production and
transportation of carbon dioxide and operating terminal capacity
for a variety of dry and liquid products.  The firm had revenues
of around $8.2 billion in 2011 and EBITDA margins of around
33%. Here we provide a brief overview of the firm’s business
model, its key operating segments and the factors that are
currently driving them.  KMP is viewed as a good defensive stock
in the energy sector, thanks to its largely fee-based and
diversified business model. Most of the firm’s revenues are tied
to the volumes of the commodities that it carries rather that
the prices of the commod