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Midstream Companies Fell below 100-Day Moving Averages

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Jan. 15 2016, Updated 8:48 a.m. ET

Midstream below 100-day moving average

As of January 13, 2016, the 100-day moving averages of midstream companies’ stocks showed strong resistance. All the midstream companies in the following table were trading below their 100-day moving averages. On average, midstream companies are trading 33% below said averages.

Specifically, Kinder Morgan Energy Partners (KMI) and Williams Companies (WMB) were trading 48% and 62%, respectively, below their 100-day moving averages as of January 13. Midstream companies were also trading well below their 20-day moving averages.

Spectra Energy Partners (SEP) managed to trade 1.5% below its 100-day moving average as of January 13. This is close when compared to other midstream companies. The stock is continuously struggling to cross its 100-day moving average.

By comparison, the Alerian MLP ETF (AMLP) was trading 24% below its 100-day moving average.

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Wall Street analyst consensus estimates

Wall Street analyst consensus estimates suggest an impressive 92.8% upside for these midstream companies when compared to the 64% upside consensus estimates for large-cap upstream companies. Over the next 12 months, midstream operators Williams Companies and Energy Transfer Partners (ETP) could see rises of 200% and 92%, respectively, from their levels as of January 13. Below is a rundown of three other midstream operators and the Wall Street analyst estimates for each company over the next 12 months:

  • Kinder Morgan could see a 65% rise.
  • Spectra Energy could see a 35% rise.
  • Williams Partners (WPZ) could see a 130% rise.

Interestingly, the forward PE (price-to-earnings) ratio for the next year suggests that Energy Transfer Partners and Williams Partners are cheaper than other MLPs.

In the next and final part of this series, we’ll discuss the moving averages and analyst estimates of renewable energy companies.

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