The $641 Billion Opportunity That Could Put Your Retirement on Autopilot

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America's energy boom has created a breathtaking opportunity for future retirees. The boom has opened up a $641 billion shortfall in the country's energy infrastructure. Because of that midstream companies like Energy Transfer Partners (NYSE: ETP), Boardwalk Pipeline Partners (NYSE: BWP) and Kinder Morgan Energy Partners (NYSE: KMP) have an unprecedented pipeline of future growth opportunities.

Analysts predict that midstream companies will need to spend a total of $30 billion per year to support the growing supply of energy from America's shale basins. That's triple the previous estimate of $10 billion per year, which means the opportunity for future profits have also multiplied.

That plays right into the hands of Energy Transfer Partners and Kinder Morgan Energy Partners, which already are among the largest energy midstream companies in the country. Energy Transfer Partners owns and operates 43,000 miles of natural gas, natural gas liquids, refined products and crude oil pipelines. Meanwhile, Kinder Morgan Energy Partners is part of a family of companies that owns about 80,000 miles of pipelines along with 180 terminals. Both companies can build upon these substantial networks of pipelines to earn their investors a lot of money in the years ahead.

These companies will be spending billions of dollars over the next 20 years to build these critical energy infrastructure projects. As these projects come online each will produce a long-term income stream for investors that has the potential to grow fairly large over the next few decades. It's a trend that could put your retirement on autopilot. I created the slideshow below to give you a small sample of the opportunities that await these three companies.

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  • http://fuelfix.com/blog/2014/03/18/report-641-billion-in-infrastructure-needed-by-2035/
  • http://fuelfix.com/blog/2014/03/18/report-641-billion-in-infrastructure-needed-by-2035/
  • http://fuelfix.com/blog/2014/03/18/report-641-billion-in-infrastructure-needed-by-2035/
  • http://fuelfix.com/blog/2014/03/18/report-641-billion-in-infrastructure-needed-by-2035/
  • http://fuelfix.com/blog/2014/03/18/report-641-billion-in-infrastructure-needed-by-2035/
  • http://fuelfix.com/blog/2014/03/18/report-641-billion-in-infrastructure-needed-by-2035/
  • http://fuelfix.com/blog/2014/03/18/report-641-billion-in-infrastructure-needed-by-2035/
  • http://www.energytransfer.com/overview_etp.aspxPhoto: https://www.flickr.com/photos/nicholas_t/10544697854/in/photolist-h4Nkiq-fjrWva-fjrWcD-fjG6ZG-h4PsUK-9mqdfr-fjG7tL-gGrLGE-foGiXm-fos1Zp-gGsM5F-fFf11b-fFf1xu-gGxAQJ-gGxDLU-fjrVXr-fjG7gh-h4i6BK-h4gXE6-h4hai5-gKmrT1-gKmpaz-gKnhFP-gKmn52-gKmrpW-gKmt5Q-gKmtoL-gKmqYL-gKmpTQ-h3KajF-h3KoSd-gGtHc8-gGt5Vo-gGsEWu-gUQtGZ-gUPaGf-gJBh32-gJAmPE-gJAkX9-gJAmtj-gJAtXu-gJAt8o-gJAueR-gGsNUx-gGrKh5-gGrJP1-gGs8nZ-gGrMeb-gGsLun-fGtMFY
  • http://www.energytransfer.com/ops_other.aspx
  • file:///C:/Users/Owner/Downloads/ETP_2013_Analyst_Day_Presentation%20(1).pdf
  • file:///C:/Users/Owner/Downloads/ETP_2013_Analyst_Day_Presentation%20(1).pdf
  • file:///C:/Users/Owner/Downloads/ETP_2013_Analyst_Day_Presentation%20(1).pdf
  • https://www.flickr.com/photos/dno1967b/8083384599/in/photolist-eRv3o9-g1LfMa-5kLc6h-8YGhub-djisBZ-cfh48C-6wufU3-5uc9Jo-4XD9dZ-fFyixW-fFyd5o-fFguSX-fFycCd-fFxWWj-fFxVDW-fFybNU-fFy6QS-fFghhe-fFgst2-fFgiuD-fFgyAH-fFgniD-fFgH3g-fFgvS8-fFyhCf-fFgx2B-fFykmG-fFycfS-fFgmtH-fFy2bs-fFgvdr-fFybmb-fFgGDa-fFgmUx-fFyniC-fFydxu-fFyoQN-fFyjD1-fFgwkx-fFgK8i-fFgka6-fFy3rm-fFxVcA-fFgFP8-fFxUi3-fFxU2q-fFyeeE-fFgqFF-fFgwFH-fFy7Vd
  • file:///C:/Users/Owner/Downloads/2014%20NAPTP%20MLP%20CONFERENCE.pdf
  • file:///C:/Users/Owner/Downloads/2014%20NAPTP%20MLP%20CONFERENCE.pdf
  • file:///C:/Users/Owner/Downloads/2014%20NAPTP%20MLP%20CONFERENCE.pdf
  • file:///C:/Users/Owner/Downloads/2014%20NAPTP%20MLP%20CONFERENCE.pdf
  • http://www.kindermorgan.com/investor/presentations/0515_investor_pres_SK.pdf
  • http://www.kindermorgan.com/investor/presentations/0515_investor_pres_SK.pdf
  • http://www.kindermorgan.com/news/factsheet1.pdf
  • http://www.kindermorgan.com/news/factsheet1.pdf
  • The $641 Billion Opportunity That Could Put Your Retirement on Autopilot

    1. 1. The $641 Billion Opportunity That Could Put Your Retirement on Autopilot Photo credit: Kinder Morgan
    2. 2. The problem According to analysis by ICF International, America needs $641 billion in energy infrastructure by 2035.
    3. 3. The problem That’s $30 billion per year, or triple the previous estimate.
    4. 4. The problem Half of that spending will be on natural gas infrastructure.
    5. 5. The problem We need 35,000 miles of new transmission pipeline and 303,000 miles of gas gathering lines.
    6. 6. The problem That’s enough pipe if laid end-to-end to go around the earth 13.5 times!
    7. 7. The problem America’s $641 billion infrastructure build out could put your retirement on autopilot, if...
    8. 8. The problem …you invest in the companies that will build and operate these assets.
    9. 9. Energy Transfer Partners • Owns and operates 35,000 miles of natural gas and natural gas liquids pipelines across the U.S. NYSE: ETP Photo credit: Flickr/Nicholas A. Tonelli
    10. 10. Energy Transfer Partners Key facts: • Operates the largest intrastate pipeline system in Texas. • Retail marketing segments consist of over 5,000 convenience stores in the U.S. • Owns an interest in a variety of other MLPs with assets that include retail propane marketing, refining and gas distribution.
    11. 11. Energy Transfer Partners Key facts: • Operates the largest intrastate pipeline system in Texas. • Retail marketing segments consists of over 5,000 convenience stores in the U.S. • Owns an interest in a variety of other MLPs with assets that include retail propane marketing, refining and gas distribution.
    12. 12. Energy Transfer Partners Why invest? • Placed $2.1 billion of new assets into service over the past year. • Actively working on more than $2 billion of near-term growth projects. • Long-term opportunities include LNG and LPG exports.
    13. 13. Energy Transfer Partners Why invest? • Current assets support a distribution of 6.68%. • However, Energy Transfer Partners was finally in a position to begin raising its distribution after five years of stagnant payouts. • Plan is to target ongoing distribution growth in a sustained manner as new projects come online.
    14. 14. Boardwalk Pipeline Partners • Owns and operates 14,450 miles of pipelines across the U.S. NYSE: BWP Photo credit: Flickr/Daniel Oines
    15. 15. Boardwalk Pipeline Partners Key facts: • Focused on transporting, storing, gathering and processing natural gas and natural gas liquids. • Owns and operates 14,195 miles of natural gas pipelines and anther 225 miles of liquids pipelines. • Boardwalk also owns 207 billion cubic feet of natural gas storage capacity along with 17.6 million barrels of liquids storage capacity.
    16. 16. Boardwalk Pipeline Partners Key facts: • Focused on transporting, storing, gathering and processing natural gas and natural gas liquids. • Owns and operates 14,195 miles of natural gas pipelines and anther 225 miles of liquids pipelines. • Boardwalk also owns 207 billion cubic feet of natural gas storage capacity along with 17.6 million barrels of liquids storage capacity.
    17. 17. Boardwalk Pipeline Partners Why invest? • Directly connected to 40 natural gas fired power generating facilities in 10 states. • New natural gas-fired power plants forecasted to add 2.2 billion cubic feet to U.S. natural gas demand by 2020. • Also well positioned for increased industrial demand for natural gas as well as LNG exports.
    18. 18. Boardwalk Pipeline Partners Why invest? • Completed $2.1 billion of acquisitions or new projects since 2011. • Current focus on attracting new customers to its current assets, which could include identifying new uses for its assets. • Currently pays a 2.53% distribution, which while cut substantially earlier this year offers long-term upside as Boardwalk grows.
    19. 19. Kinder Morgan Energy Partners • Owns and operates 54,000 miles of pipelines across the U.S. NYSE: KMP Photo credit: Kinder Morgan
    20. 20. Kinder Morgan Energy Partners Key facts: • Kinder Morgan family of companies controls the largest natural gas pipeline network in North America. • Also the largest independent transporter of petroleum products and transporter of carbon dioxide in North America. • Finally, the largest independent terminal operator in North America.
    21. 21. Kinder Morgan Energy Partners Key facts: • Kinder Morgan family of companies controls the largest natural gas pipeline network in North America. • Also the largest independent transporter of petroleum products and transporter of carbon dioxide in North America. • Finally, the largest independent terminal operator in North America.
    22. 22. Kinder Morgan Energy Partners Why invest? • Invested $42 billion since 1997 in expansions, new build projects, joint ventures and acquisitions. • Delivered an average annual growth rate of 24% over that timeframe. • Current 5-year project backlog of $16.4 billion.
    23. 23. Kinder Morgan Energy Partners Why invest? • Project backlog continues to grow as the company signed on new capacity demand representing $1.5 in new investments just since December. • Asset base supports a distribution that currently yields 7.28%. • However, new projects are expected to grow the distribution payout by 5% annually through 2016, with plenty of growth beyond that date.
    24. 24. Bottom line: America’s $641 billion infrastructure spending boom will fuel tremendous growth in the industry. It’s a remarkable opportunity to put your retirement on autopilot. Photo credit: Kinder Morgan
    25. 25. Our free report detailing a simple strategy to get you more income during retirement.

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