Large-cap midstream companies are trading 33% below their respective 100-day moving averages. Upstream companies are trading 23.2% below their 100-day moving averages. Downstream companies are trading 25% below their 100-day moving averages. Kinder Morgan (KMI) trades 33% below its 100-day moving average. During the last rate hike in December 2015, Kinder Morgan was trading in the price range of $15–$16. Since then, the stock fell continuously. The stock trades around $14.61.
Spectra Energy Partners (SEP) is trading 9% above its 100-day moving average. This is close to the performance of other midstream companies. The stock struggled to cross its 100-day moving average. Midstream companies are also trading well below their 20-day moving averages except for Kinder Morgan and Spectra Energy Partners.
Wall Street analysts’ consensus estimates
Wall Street analysts’ consensus estimates suggest an impressive 100% upside for these US (SPY) midstream companies. We can compare that to the 46.6% upside consensus estimate for large-cap upstream companies. Over the next 12 months, midstream operators Spectra Energy and Energy Transfer Partners (ETP) could see rises of 13% and 93%, respectively, from their current levels as of February 9, 2016. The above graph shows these midstream companies’ moving averages and analysts’ estimates.