Kinder Morgan Underperformed the Broader Energy Sector Last Week
Kinder Morgan fell 0.4% last week
Kinder Morgan (KMI) stock fell 0.4% in the week ending November 10, 2017. In comparison, ONEOK (OKE) fell 0.5%, while Enterprise Products Partners (EPD) ended the week flat. The broader energy sector—represented by the Energy Select Sector SPDR ETF (XLE)—rose 1.4% for the week following strong crude oil prices. The West Texas Intermediate crude oil near-month futures prices rose 2% for the week. To learn more about the factors that impacted crude oil prices, read Why Doubts Linger about Sustainability of Crude Oil Bull Market.
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Kinder Morgan outperformed the midstream MLP sector during the week. The Alerian MLP ETF (AMLP) fell 1.9% for the week. The broader markets, represented by the SPDR S&P 500 ETF (SPY) (SPX-INDEX), closed 0.1% down for the week. The above graph compares Kinder Morgan’s stock performance with ONEOK, Enterprise Products Partners, XLE, and crude oil last week.
Trans Mountain expansion update
According to a Reuters report dated November 7, 2017, Canada’s NEB (National Energy Board) denied a speedy decision on Kinder Morgan’s request to sidestep some municipal permits for the project. Kinder Morgan requested that the regulator intervene after it couldn’t get some permits from British Columbia. The NEB said that it won’t give a decision on the request before December 4, 2017.
Kinder Morgan has fallen 18% year-to-date. Nearly 58% of the analysts rate Kinder Morgan as a “buy” and 42% rate it as a “hold.” Kinder Morgan’s consensus target price of $22 implies 25% upside in a year from its current price of $17.67.
In the next part, we’ll see what Kinder Morgan’s moving averages indicate.