Nothing has changed since we first responded to Hedgeye Risk Management’s attack on Kinder Morgan Energy Partners LP (NYSE: KMP)--except that these views appeared in Barron’s, a magazine widely read by the retail investors that make up much of Kinder Morgan Energy Partners’ investor base.
Although Kinder Morgan Inc’s IDRs entitle the firm to a sizable percentage of Kinder Morgan Energy Partners’ cash flow, the bearish case exaggerates the challenges that this arrangement poses to the limited partner’s distribution growth.
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