What is Going On With These Five Plunging Stocks?

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The pain hasn’t been just limited to oil E&P’s and oil service companies, unfortunately. The energy price crash has also claimed victims in the downstream energy pipeline and processing companies, Kinder Morgan Inc (NYSE:KMI) and Energy Transfer Partners LP (NYSE:ETP), whose stocks slid by 6% and 10% on Monday, respectively. Investors have been selling off Kinder Morgan Inc (NYSE:KMI) because they fear management will cut the dividend in order to maintain the company’s investment grade rating. Given its debt of 5.6x EBITDA, KMI is more leveraged than its peers and can’t afford to lose its rating. Some analysts are suggesting that KMI management should cut the $0.51 quarterly dividend to $0.01 per share, in a move that will likely send many dividend investors heading for the exits.

Given Energy Transfer Partners LP (NYSE:ETP)’s high yield and today’s sell off, some investors fear ETP could cut its dividend as well. Both companies will be good buys if crude prices recover, but when that time comes is anyone’s guess.

Follow Energy Transfer Lp (NYSE:ETP)

Follow Kinder Morgan Inc. (NYSE:KMI)

Disclosure: none

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