On Tuesday, Shares of Kinder Morgan Inc (NYSE:KMI), lost -4.17% to $15.73.
Kinder Morgan Inc., the largest pipeline operator in North America, reduced its dividend Tuesday by 75%, in a shocking turnabout for a company that remade a staid corner of the energy sector with the promise of ever-rising payouts to shareholders, according to WSJ
The company’s board on Tuesday signed off on the move to drop Kinder Morgan’s quarterly dividend of 51 cents a share to 12.5 cents starting in the fourth quarter.
The move comes as Wall Street has soured on pumping new equity and debt into energy companies like Kinder Morgan, which rely heavily on outside funding, forcing the pipeline giant to choose between using its cash for growth or to make dividend payments.
“This is in the best long-term interest of our shareholders,” said Steven Kean, president and chief executive of Kinder Morgan. “In these circumstances, which are clearly dramatically changed, this is the right thing to do.” WSJ Report
Kinder Morgan, Inc. (KMI) is an energy infrastructure and energy company in North America. The Company operates through six segments: Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada and Other.
Shares of Chesapeake Energy Corporation (NYSE:CHK), inclined 3.04% to $4.40, during its last trading session.
Brent crude dipped below $40 a barrel Tuesday in a selloff that has raised a worrisome possibility: that oil prices could be even lower next year than they have been in 2015, according to WSJ
In a volatile trading session oil prices closed at nearly seven-year lows, extending losses that have rattled global stock markets and raised fresh questions about oil producers’ ability to weather a prolonged rout.
Analysts and investors who initially thought prices would recover in the second half of 2015 now say they don’t expect any pickup until late 2016. WSJ Report
The latest oil plunge is rocking the stock market, with shares of Big Oil companies like ExxonMobil (XOM) and Chevron (CVX) retreating further in recent days, according to CNNMoney
The Dow fell as much as 245 points on Tuesday, with the slumping energy sector leading the way lower. Oil fell as low as $36.64 a barrel, but it bounced off those levels and settled at $37.51.
Chesapeake Energy Corporation produces oil and natural gas through acquisition, exploration, and development of from underground reservoirs in the United States. It holds interests in natural gas resource plays, counting the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas.
Finally, Shares of Banco Bradesco SA (ADR) (NYSE:BBD), ended its last trade with 0.72% gain, and closed at $5.62, as some U.S. traded Brazil-based stocks take a hit from the decline in the real, spurred by the latest economic data out of China, Brazil’s largest trading partner.
Banco Bradesco is a Sao Paulo-based commercial bank offering a variety of banking and financial products and services to clients in Brazil and internationally.
The real declined by 0.8% to 3.7979 per dollar as of 1:08 p.m. in Sao Paulo, according to Bloomberg. Earlier recently the currency had slumped by more than 1%.
China’s imports fell for the thirteenth successive month, although at a slower than predictable pace, Bloomberg added. The drop impacts other economies as China’s weakening industrial plants require less raw materials.
Additionally, Brazil is dealing with ongoing political struggles as an effort is made to impeach President Dilma Rouseff.
Banco Bradesco S.A. provides banking and financial products and services to individuals, companies, and corporations and institutions. The company operates through two segments, Banking; and Insurance, Pension Plans and Capitalization Bond.