Downstreams Trade 17% below Their 100-Day Moving Averages


Jan. 31 2016, Updated 3:06 p.m. ET

100-day moving averages

Large-capped midstreams are trading 25.3% below their respective 100-day moving averages while upstreams trade 22% below theirs. Additionally, downstreams trade 17% below their 100-day moving averages.

The midstream Kinder Morgan (KMI) trades 39% below its 100-day moving average. During the last rate hike in December 2015, KMI was trading in the price range of $15 to $16. Since then, the stock continuously fell. The stock trades around $14.2.

However, the stock is trading close to its 20-day moving average. On January 27, 2016, the stock fell by 5%. The stock currently trades 68% below its 52-week high since April 2015. On average, the midstream fell 4.5% as of the January 27 close.

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Spectra Energy Partners (SEP) is trading 4.8% below its 100-day moving average. This is close to the performance of other midstream companies. The stock continued its struggle to cross its 100-day moving average. Midstream companies are also trading well below their 20-day moving averages except for Kinder Morgan.

Wall Street analysts’ consensus estimates

Wall Street analysts’ consensus estimates suggest an impressive 59.6% upside for these US (SPY) midstream companies. We can compare that to the 46.0% upside consensus estimate for large-cap upstream companies. Over the next 12 months, midstream operators Williams Companies and Energy Transfer Partners (ETP) could see rises of 72% and 52%, respectively, from their current levels, as of January 27, 2016.


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