By Rachel Graf | TheStreet
NEW YORK (TheStreet) --Kinder Morgan (KMI - Get Report) stock is soaring by 8.79% to $15.10 in late-morning trading on Friday, after the company reported its 2015 fourth quarter earnings results, ahead of dismal expectations and reduced its 2016 capital budget.
During the fourth quarter, the company slashed its dividend to 12.5 cents per share from 51 cents per share to reduce its debt load, sending shares down 75% from its dividend cut until Wednesday's market close.
However, shares are rallying after Kinder Morgan announced that it is cutting its 2016 capital budget by $900 million, which could boost its dividend again.
With the downward revision, the company now expects to declare dividends of 50 cents per share, generate roughly $4.9 billion of distributable cash flow available to equity holders and about $4.7 billion of distributable cash flow available to common shareholders and approximately $3.6 billion of cash flow in excess of its dividend.
"It was the greatest short in history," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning. "They cut the dividend to where they could boost the dividend."
Analysts are cheering the move as well, with SunTrust observing that " given the (somewhat) alleviated concerns over the balance sheet, minimal need for external capital and excess cash flow that could be used to delvever or buy in shares, much of the dire uncertainty has been removed from this name," Barron's reported.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Kinder Morgan's weaknesses include its generally disappointing historical performance in the stock itself, deteriorating net income, generally high debt management risk, disappointing return on equity and feeble growth in its earnings per share.
You can view the full analysis from the report here: KMI
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
KMI data by YCharts
Kinder Morgan (KMI) Stock Surges After Earnings, Jim Cramer 'Greatest Short in History'
NEW YORK ( TheStreet) -- Kinder Morgan stock is soaring by 8.79% to $15.10 in late-morning trading on Friday, after the company reported its 2015 fourth quarter earnings results, ahead of dismal expectations and reduced its 2016 capital budget.
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