Is This Dividend Stock Following in Kinder Morgan's Footsteps?
Kinder Morgan (NYSE: KMI) is one of North America's leading energy infrastructure companies. It operates the largest natural gas transmission network, is the largest independent transporter of refined products, and is the largest independent terminal operator. It also has the largest carbon dioxide transportation capacity in the country. That carbon dioxide business puts Kinder Morgan in an excellent position to capitalize on the growing need for infrastructure to transport and store the greenhouse gas.
Carbon capture and storage is a potentially multitrillion-dollar market opportunity. That's leading EnLink Midstream (NYSE: ENLC) to build a carbon solutions business of its own. That could give the company more fuel to sustain and expand its dividend, which at current share prices already yields 3.9%.
Kinder Morgan is a leader in carbon dioxide solutions. The company extracts the gas from underground reservoirs and transports it via an extensive 1,500-mile pipeline network to oil fields in the Permian Basin, where its customers inject the gas into older oil reservoirs to increase pressure and boost output -- one method in the suite of tools the industry calls "enhanced oil recovery." The company's legacy carbon dioxide business supplies it with about 9% of its earnings, including oil, natural gas liquids, and carbon dioxide sales and transportation fees.
Source Fool.com
