100-day moving averages
The 100-day moving averages of midstream companies’ stocks have shown strong resistance. All of the midstream companies in the following table are trading below their 100-day moving averages, as of yesterday’s close. On average, midstream companies are trading 26% below their 100-day averages.
Specifically, Kinder Morgan (KMI) and Williams Companies (WMB) are trading 40% and 46.7%, respectively, below their 100-day moving averages. Spectra Energy Partners (SEP) is trading 5.4% below its 100-day moving average. This is close to the performance of other midstream companies. The stock continued to struggle to cross its 100-day moving average. Midstream companies are also trading well below their 20-day moving averages.
Wall Street analysts’ consensus estimates
Wall Street analysts’ consensus estimates suggest an impressive 60% upside for these US (SPY) midstream companies—compared to the 60.3% 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 81% and 62%, respectively, from their current levels, as of January 25, 2016. Below is a rundown of three other midstream operators and Wall Street analysts’ estimates for each company over the next 12 months:
- Kinder Morgan could see a 41% rise.
- Spectra Energy could rise by 24%.
- Williams Partners (WPZ) could see a 60% rise.
Interestingly, the forward price-to-earnings ratios for the next year suggest that Energy Transfer Partners and Williams Partners are cheaper than other MLPs.
In the next part of this series, we’ll discuss the moving averages and analysts’ estimates for integrated oil and gas companies.