As a company working in the oilfield, you know that a changing market can drastically affect your ability to predict your cash flow. That’s why at TCI Business Capital, our oilfield factoring services let you take control of your cash flow from your customers like Kinder Morgan.
At TCI Business Capital, we make it simple to get funded on your open Kinder Morgan invoices. In just three simple steps we can ease your cash flow concerns:
In as little as 15 minutes, we can get you approval for factoring for Kinder Morgan invoices.
After you are quickly set up, send us your invoices as soon as they are ready.
The same day that we receive your invoices, we initiate a competitive advance of the total directly into your bank account. We await payment from Kinder Morgan, and provide you the remainder, less our fee, once final payment is received.
When you think about natural gas pipelines, chances are the first company that comes to mind is Kinder Morgan. That is because it is one of the largest providers of infrastructure for the energy industry in North America. Kinder Morgan either operates or owns an interest in more than 80,000 miles of pipeline and 155 terminals across North America. The company’s pipelines primarily transport natural gas, crude oil, gasoline and carbon dioxide. Furthermore, its terminals handle and store chemicals, petroleum products and many other products.
The company is a market leader in all its areas of business. It has a vast, unparalleled network of strategically-located, diverse assets that play a core role in North America’s energy infrastructure. This enables the energy giant to consistently deliver various energy products to a number of high-demand markets in Canada and the United States.
Kinder Morgan prides itself on being a unique kind of energy company. Evidence of this is apparent right from its top leadership, particularly the Executive Chairman Rich Kinder, as well as President and CEO Steve Kean. Both these individuals receive an annual salary of $1 and do not receive bonuses, stock options or restricted stock grants. The firm also eliminated unnecessary perks like sports tickets and corporate aircraft in order to cut back its expenses. Furthermore, employees receive financial incentives solely on the basis of company performance, in addition to their own personal output.
Kinder Morgan has firmly established a reputation of transparent business practices over the years. For instance, it is one of the only S&P 500 companies that reports its annual budget on its public website. This allows investors to follow the company’s progress through each year. It has also won numerous accolades for its environmental safeguards, as well as health and safety measures.
Kinder Morgan employs approximately 11,000 people. Its headquarters are in Houston, Texas.
In 1997, a group of investors acquired a small, public pipeline company known as Enron Liquids Pipeline, L.P. The investors were led by Richard D. Kinder, who was the designated Executive Chairman, and William V. Morgan was the Vice Chairman. They renamed the firm Kinder Morgan Energy Partners (KMP) soon afterward. This was later changed again to Kinder Morgan Energy Partners, L.P.
The new company was based in Houston, Texas. Kinder Morgan started out with only 175 employees and very few assets. The enterprise was valued at $325 million at the time. However, Kinder and Morgan had very big plans to build a unique kind of energy company. Their strategy to achieve this vision included using the financial structure according to a master limited partnership (MLP) to fuel the firm’s growth. This is something that had never been done before; nevertheless, it was hugely successful. Kinder Morgan soon became the largest public pipeline limited partnership in the United States, using its enterprise value as a basis.
The company’s early years were characterized by accelerated growth brought about by numerous acquisitions. Kinder Morgan purchased numerous assets, such as pipelines for refined petroleum, carbon dioxide production fields and pipelines, natural gas pipelines and terminals for bulk and liquids. However, the company soon established itself as a major player in the energy industry and powered its growth through new build projects and expansions.
In 1999, the company took over the ownership of KN Energy through a reverse merger. KN Energy was a successful Colorado-based natural gas pipeline and utility company that had been in operation since 1936. This acquisition also included Natural Gas Pipeline Company of America (NGPL), which served the greater Chicago area. KN Energy then became Kinder Morgan, Inc., the energy giant’s second publicly-traded firm. The third Kinder Morgan company was formed in 2001. Called Kinder Morgan Management, LLC, this new company was mandated to oversee ownership of KMP equity.
Kinder Morgan went on to acquire the Canadian company Terasen Inc. in 2005. This deal significantly raised the company’s presence in the Canadian market, as well opened up access to its oil sands through the Trans Mountain Pipeline. Kinder Morgan went on to offer the single largest private equity-backed IPO in U.S. history on the New York Stock Exchange. The IPO raised an estimated $3.3 billion through the issuance of at least 110 million shares.
While the energy industry is very profitable, unexpected price fluctuations can make it extremely volatile. This volatility can seriously impede the ability of an energy company to operate, especially if its business model is vulnerable to the fluctuation of oil and gas prices. The diversity of Kinder Morgan’s model helps it survive these upsets and continually thrive in an unpredictable market.
As opposed to focusing on profiting from its actual product, Kinder Morgan zeroes in on cash flow and makes its money through fees. It charges other companies a certain fee to use its terminals, pipelines, and other assets. It also focuses on winning long-term contracts from major players in the oil and gas industry. This approach helps the firm avoid direct exposure to volatile markets and price fluctuations while ensuring it still generates stable earnings and significant profits consistently.
Kinder Morgan’s customer base includes major energy producers, oil companies and local distribution companies.
1001 Louisiana St Ste 100
Houston, TX 77002