Kinder Morgan (ticker: KMI) Executive Chairman Richard Kinder bought shares of the energy-pipeline company that he co-founded, continuing a record of purchases that totaled more than $130 million last year.
Richard Kinder declined to comment on his transactions, as did Kinder Morgan.
In his latest open-market stock purchase, he paid 2.1% less than the $21.17 end-2019 price of Kinder Morgan stock. A market slump last week over fears of the coronavirus outbreak sent shares even lower.
Kinder Morgan stock logged a 37.6% gain last year, topping the 28.9% rise in the
index. Year to date, however, Kinder Morgan stock sports a 9.4% drop through Friday’s close, while the index has slid 8.6%
Energy Transfer Chairman and CEO Kelcy L. Warren paid $45.2 million on Feb. 19 for a total of 3.6 million of the company’s publicly traded units, an average price of $12.53 each. Warren, who co-founded the diversified energy firm, made the purchases through a personal account, a limited partnership, and a limited liability company. He now has overall ownership of 255.6 million units.
In response to a request foir commnet from Warren, Energy Transfer provided the following statement:
“Kelcy’s purchase this week of nearly 4 million units totaling more than $45 million signifies not only his belief in Energy Transfer, but in the management team, specifically. In fact, in the last 12 months, he has invested more than $180 million in Energy Transfer units and now owns approximately 10% of Energy Transfer’s total outstanding units.”
Warren’s average purchase price marked a 2.3% drop from Energy Transfer stock’s 2019 closing price of $12.83. Energy Transfer units are now lower, with a year-to-date drop of 13.6%. This follows a 2.9% drop in 2019.
Apart from co-founding their companies, Richard Kinder and Warren have something else in common. They remain the largest shareholders in their respective companies. Richard Kinder owns a stake of more than 11% in Kinder Morgan, while Warren owns 9.5% of Energy Transfer, according to S&P Capital IQ.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at firstname.lastname@example.org
Read More: Energy Stocks Kinder Morgan, Energy Transfer See Big Insider Buys