Last week, financials got a boost after major banks cleared the latest round of the Fed’s stress tests. Financial stocks rose 1.5% last week.
Targa’s Logistics and Marketing segment includes all the activities necessary to convert mixed NGLs into NGL products.
On July 5, 2017, the Utilities Select Sector SPDR ETF was offering a dividend yield of 4.1%, while the SPDR S&P 500 (SPX-INDEX) (SPY) was yielding ~1.9%.
Although Xcel Energy (XEL) has been steadily making profits, its cash from operations seems to be insufficient to fund its capital expenditure needs.
While coal has lost its dominant position in US power generation over the past few years, Xcel Energy’s generation mix is still overshadowed by coal.
Xcel Energy (XEL) has a market capitalization of $23 billion and appears to be one of the potentially attractive utility stocks in 2017.
Schneider National (SNDR) topped the list with a stock price gain of 6.5%. It was the top gainer in the logistics and air travel sector.
For the week of June 26–30, 2017, General Motors (GM) was the top performer among automobile manufacturers. Its stock rose 2.1% during the past week.
Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.
Kinder Morgan (KMI) reduced its net debt by $3.1 billion in 2016. Its net debt stood at $38.2 billion at the end of 2016.
After KML’s IPO (initial public offering), Kinder Morgan retains ownership of nearly 70% of KML, with the remaining 30% owned by the public.
Kinder Morgan’s growth capital forecast for 2017 is ~$3.2 billion, including joint venture contributions.
According to the EIA, motor gasoline, distillate fuel oil, and jet fuel demand in 2017 is expected to increase modestly.
Liquids comprise nearly 81% of the Terminals segment’s 2017 budgeted earnings before depreciation and amortization.
KMI’s Natural Gas Pipelines segment’s gas gathering volumes fell from 3,540 BBtupd in 2015 to 2,970 BBtupd in 2016.
KMI believes that in addition to the increase in demand for natural gas transportation, there are strong drivers to increase gas storage demand.
Natural gas is KMI’s largest market and accounts for more than 50% of Kinder Morgan’s 2017 budgeted EBDA.
Kinder Morgan (KMI) is one of the largest energy infrastructure companies in the US. KMI owns an interest in or operates ~84,000 miles of pipelines and 155 terminals.
KMI’s CO2 segment produces, transports, and markets CO2 for use as a flooding medium for recovering crude oil from mature oil fields.
Noble Energy’s (NBL) 1Q17 EV-to-adjusted EBITDA (enterprise value to adjusted earnings before interest, tax, depreciation, and amortization) ratio was ~16x.