Kinder Morgan Inc (NYSE:KMI) Files Annual 10 K Report Amidst Mounting Criticism Of Its Non Adherence To GAAP


Dallas, Texas 03/07/2014 (FINANCIALSTRENDS) – Kinder Morgan Inc (NYSE:KMI) the third largest firm in the U.S energy sector based on its combined market valuation of close to $110 billion which focuses on the transport and storage services for the energy vertical, has filed its annual form 10 K report covering operations in the January to December 2013 time frame on 4th March. The report also details the operational results for the firm’s holding companies and stand alone firms of “Kinder Morgan Energy Partners, L.P. (KMP), Kinder Morgan Management, LLC (KMR) and El Paso Pipeline Partners, L.P. (EPB)”

Through its various holding firms and partnerships, Kinder Morgan Inc (NYSE:KMI) owns close to 80,000 miles of pipeline and more than 180 oil and gas terminals across the country. This huge energy conglomerate does not follow the established GAAP based reporting practices to record its operations results and hence has been criticized from time to time by analyst and investors alike for their determination to buck the normal reporting practices.

One of the latest such criticism faced by Kinder Morgan Inc (NYSE:KMI) came from the analysts of trading house Barron’s. The analysts had pointed out that the current practice of the energy major of calling out its numbers outside the GAAP established benchmarks and its confusing holding patterns with its subsidiaries and partially owned firms via “limited partnership” ventures makes it difficult for potential investors to correctly value the company and identify potential risks.

In response to the stinging criticism by Barrons, Kinder Morgan Inc (NYSE:KMI) deemed it  fit to respond with a detailed response in which they hold out hope that in the near future, the sprawling firm, might venture upon an exhaustive corporate reorganizing exercise with the express intent of consolidation of its various holding into a simpler holding pattern. The ambiguously worded statement by the firm indicated that, “KMP would consider other options if we get to a point where we cannot deliver attractive returns to LP investors. However, we do not believe we are at that point,” Kinder Morgan said.