Kinder Morgan's Growth Engine Is Running Out of Gas

The North American energy sector's growth days appear to be in the rearview mirror. At least that's the view of executives at pipeline giant Kinder Morgan (NYSE: KMI) as they discussed what they saw ahead during its second-quarter conference call. That dimming outlook for organic expansion will likely force the company to consider alternative strategies to create shareholder value in the coming years.

Kinder Morgan's founder, Richard Kinder, provided investors with a candid view of what the company now sees ahead:

Looking beyond 2020, we believe we are operating in a maturing business segment and that our opportunities for viable expansion projects will likely be significantly less than we have experienced over the last several years. If that expectation proves accurate, it will probably reduce our growth potential, but allow us to husband significant cash flow that we can use to increase our dividend, pay down debt, and/or buy back shares under the right conditions.

Source Fool.com