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Actionable news in KMI: KINDER MORGAN Inc,

Why Warren Buffett Bought Kinder Morgan Over Other Infrastructure and MLPs

By going with the clean corporation structure of Kinder Morgan, it would seem that Buffett is not making an already very complicated tax structure and tax filing of Berkshire Hathaway just that much more complicated. As a reminder, companies pay dividends while MLPs pay distributions that are part income and distributable cash flow and partly a return of capital.

Now let’s consider what else Buffett was attracted to with Kinder Morgan. It is counted as the largest energy infrastructure company in North America, having ownership or operating interests in roughly 84,000 miles of pipelines and around 180 terminals. Its pipelines transport almost every group of energy components as well. Its terminals store petroleum products and chemicals, and the...