DCP Midstream (DCP) and Kinder Morgan (KMI) have decided to come together for a natural gas pipeline project, the Gulf Coast Express Pipeline.
Of the analysts surveyed by Reuters, ~73% rated Kinder Morgan (KMI) as a “buy” and ~27% rated it as a “hold.” None of the analysts rated it as a “sell.”
Kinder Morgan reduced its net debt by $3.1 billion in 2016. Its debt-to-EBITDA ratio stood at 5.3x at the end of 2016—compared to its target of 5.5x.
Kinder Morgan’s growth capital forecast for 2017 is ~$3.2 billion including joint venture contributions. It’s 14% higher than $2.8 billion spent in 2016.
Natural gas–related operations are expected to account for 55% of Kinder Morgan’s 2017 budgeted EBDA (earnings before depreciation and amortization).
Kinder Morgan carries its operations through five reportable segments. The Natural Gas Pipelines segment is Kinder Morgan’s largest business segment.
Analysts surveyed by Reuters expect Kinder Morgan’s (KMI) 1Q17 EPS (earnings per share) to be $0.18—flat compared to its 4Q16 adjusted EPS.
Analysts expect a 1.5% fall in Kinder Morgan’s 1Q17 net income to $404 million from $410 million in 4Q16—a 1% fall from Kinder Morgan’s 1Q16 net income.
On a broader level, 85.0% of the analysts rate Cheniere Energy as a “buy,” while 15.0% rate it as a “hold.” Its average target price is $54.2.
Short interest in Cheniere Energy (LNG), as a percentage of float, fell to 5.4%. The ratio is lower compared to the average of 7.9% in the past year.
Cheniere Energy’s (LNG) ten-day and 30-day volatility of 23.1% and 27.4% are higher than the sector average of 15.7% and 18.8%, respectively.
Currently, Cheniere Energy is trading 3.4% above its 50-day simple moving average and 13.2% above its 200-day simple moving average.
Cheniere Energy’s (LNG) shares edged slightly higher last week, while the sector remained sluggish. It rose 0.3% during the week.
Citigroup upgraded WMB last week from neutral to “buy.” After the recent upgrade, 58.0% of analysts rate Williams Companies a “buy,” and the remaining 42.0% rate it as a “hold.”
Williams Companies’ EV-to-adjusted EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) ratio using a trailing-12-month adjusted EBITDA is 12.7x.
Short interest in Williams Companies (WMB) as a percentage of float has come down to 1.4%.
Williams Companies’ (WMB) ten-day and 30-day volatilities of 19.2% and 21.2% are higher than the sector average of 17.9% and 18.7%, respectively.
Williams Companies (WMB) continued its winning streak last week with a rise of 2.6%.
The Fed has started the rate normalization process only recently and has a long way to go before the rates come back to pre-Lehman-collapse levels.
Markets will be monitoring any comments from the Fed going forward, and every future meeting will likely be lively in terms of the possibility of another rate hike.