Citi Reiterates 'Hold' Rating on Kinder Morgan Energy Partners LP (KMP) - Good Quarter, But Fairly Valued

July 17, 2008 1:03 PM EDT

Citi reiterates a 'Hold' rating on Kinder Morgan Energy Partners LP (NYSE: KMP). Price target $62.

Citi analyst says, "Despite volatile commodity prices, demand destruction concerns, and a slowing economy KMP reported 2Q:08 results that were better than expected. The partnership clearly benefited from its diversified midstream asset base as its Natural Gas Pipeline, Terminals, and CO2 segments more than made up for minor misses in the Product Pipelines and Trans Mountain segments...We reiterate Hold/Medium Risk, which reflects our view that the partnership is close to fairly valued at current levels. Specifically, we believe the partnership's above average distribution growth rate is offset by a premium valuation relative to comparable midstream MLPs."

Kinder Morgan Energy Partners, L.P. (KMP) is a pipeline transportation ad energy storage company in North America. The Company owns an interest in or operates more than 25,000 miles of pipelines and approximately 165 terminals. [SM]

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