Kinder Morgan (KMI) has risen 49% since the start of 2016. By comparison, Enterprise Products Partners (EPD), ONEOK (OKE), Enbridge Energy Partners (EEP), and Energy Transfer Partners (ETP) have risen 1%, 123%, 7%, and 4%, respectively, during the same period. The Alerian MLP ETF (AMLP), an ETF of the top infrastructure MLPs (master limited partnerships), has risen 3%.
Despite this rise, KMI’s stock is still trading at half of its high price of nearly $44 in April 2015.
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The above graph shows KMI’s stock price and its 50-day and 200-day moving averages.
Kinder Morgan is now trading at 4% above its 50-day moving average and at 13% above its 200-day moving average. The stock crossed above its 200-day moving average in July 2016 and has been trading above it since then. This indicates a possible upside for the stock in the near future.
Similar to other midstream companies, KMI has shown an uptrend since February 2016. KMI’s stock has shown a high correlation with crude oil prices, especially in the past couple of years. This trend is likely to continue going forward.
In this series, we’ll take a look at the fundamental strengths of Kinder Morgan. We’ll analyze KMI’s price targets, the performance of its various segments, leverage, distributable cash flows, capital expenditures, and distribution growth.
Let’s begin with Kinder Morgan’s key assets and operations.