Saturday, June 22, 2013

Challenges Await Kinder Morgan's New Energy Business

The great majority of this country's coal production comes from Wyoming's Powder River Basin. The two leading producers there, Peabody Energy (NYSE: BTU  ) and Arch Coal (NYSE: ACI  ) , account for more than half the production in the entire basin, producing 139 million tons and 100 million tons, respectively, in 2012. But as coal demand in this country shrinks, Peabody and Arch have pinned their hopes on exports. Unfortunately, what these companies are finding is that exporting coal from ports on the Pacific coast is an increasingly contentious business.

These coal industry issues aren't new to Kinder  Morgan Energy Partners (NYSE: KMP  ) , but they are increasingly more relevant as the partnership expands its footprint with a new business unit. In this video, Fool.com contributor Aimee Duffy discusses some challenges to the partnership's new natural resource mining venture.

It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size – it's the third-largest energy company in the U.S. – not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity – as well as the risks to watch out for – in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.

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