1. Kinder Morgan

2. Overview Largest energy infrastructure company in North America. Operate approximately 84,000 miles of pipelines and approximately 180 terminals, which transport natural gas, refined petroleum products, crude oil, carbon dioxide and more. Also stores and handels a variety of products and materials such as gasoline, jet fuel, ethanol, coal, petroleum, and steel.

3. Investment Thesis The revolutionary shale plays across the United States are creating a tremendous need for more energy infrastructure, which bodes well for KMI investors. KMI is undervalued—down over $25 from 52-Week high. KMI is in an excellent position to turn large profits once the oil- storm subsides. If we are to have a share in these profits, we must enter before the oil storm subsides.

4. Fundamentals [KMI] Latest closing: $17.76 [SEP] Latest Closing: $46.54 52-Week: $11.20-$44.71 52-Week: 36.21-55.95 Market Cap: $39.63 Billion Market Cap: $14.05 Billion P/E: 181.22 P/E: 11.24 Beta:.62 Beta:.73 50 Day Moving Average: 15.23 50 Day Moving Average: 44.04 KMI has jumped 19.9% in the past 4 weeks.

5. Year to Date

7. Financials

8. Risk Assessment S&P Capital: Medium Large and diversified asset portfolio. Stable fee-based business. Offset by exposure to cyclical swings in demand for commodity transport. Largest contributing factor to risk: oil-price storm.

10. Institutional Backing Stifel Nicolaus reiterated their buy rating on Shares of KMI last Tuesday. 2015 Heavy Q4 investment: Vanguard boosted stake in KMI by 2% (2.3 million shares) Berkshire Hathaway bought a new stake in KMI (26.5 million shares) Rare Infrastructure Ltd boosted its stake in KMI by 23.6% (2.3 million shares). Atlantic Trust Group LLC bought 3.9 million shares. Commonwealth Bank of Australia purchased 1.2 million shares.

11. Recommendations -Zero underperform and Sell Recommendations over the past three months. -Most recommendations are Strong Buy or Buy.

12. Dividend KMI’s recent 75% cut to is dividend should enable continued spending on growth projects with less reliance on capital markets to provide funding (less debt). Given concerns in the marketplace over midstream investment in an environment where both crude oil and natural gas are at multi- year lows, many analysts believe that the dividend cut was a reasonable step to take and enables better financial flexibility going forward.

13. Final Point Oil prices have rebounded somewhat in the past week (back to near $30), the talk on the Street is whether we've seen a bottom in oil prices. When the mob is running in one direction, the smart investor runs the other way. With oil trading near a 12-year low, the commodity is likely to be closer to the bottom of its price cycle rather than the top. KMI has been unfairly punished. The market is making a mistake by valuing KMI shares in tandem with oil prices. KMI bills itself as the largest energy infrastructure company in North America, but oil production generated only 10% of its earnings before depreciation and amortization, the company says. The rest is from natural gas, a segment where business is strong.

14. Cases Bull: $30-40 (Oil Strom Subsides, current projects completed soon, GOP President can greatly increase expectations about energy). Normal: $17-23 (Oil prices continue to be uncertain and continue to flutter). Bear: $11-16 (Oil is not at a floor and continues fall, Democrats win causing expectations about the future of energy to decline).