John Schlosser on corporate consolidation
From New Era In Energy: Kinder Morgan CEO | Mad Money | CNBC · · CNBC
“Once it's consolidated into a single business, Kinder Morgan will be able to borrow money much more cheaply to fund those projects. On the income side, the new Kinder Morgan expects to pay two bucks per share in dividends and continue to raise this dividend over time; it yields 5.1%, which is why my charitable trust has been buying the stock.”
On , John Schlosser, VP & President of Terminals at Kinder Morgan, spoke about corporate consolidation during New Era In Energy: Kinder Morgan CEO | Mad Money | CNBC on CNBC.
About John Schlosser
John Schlosser, Vice President and President of Terminals at Kinder Morgan, has not been directly quoted in the provided material. The transcript and selected quotes feature comments from Kinder Morgan's CEO, Rich Kinder, during a September 2015 interview on CNBC's "Mad Money." In that interview, Kinder discussed the company's acquisition of its master limited partnership subsidiaries, describing the consolidated entity as a "toll road" operator with long-term contracts, particularly in natural gas pipelines. He stated that the infrastructure is needed to transport growing production from the Marcellus-Utica play and that lower natural gas prices have increased demand from petrochemical plants and electric generators. Kinder also addressed concerns about customer credit risk, saying the company has "solid contracts" with creditworthy companies and uses letters of credit for sub-investment-grade customers. Regarding oil prices, he said that existing CO2 floods in the Permian Basin can operate profitably at $40-$45 per barrel, while new floods would require $60 oil. He projected that the consolidated company would pay a $2 per share dividend in the following year and achieve 10% dividend growth through 2020.