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How Do Midstream and Upstream Energy Companies Compare?

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Moving averages

Large-cap midstream companies are trading 29% below their respective 100-day moving averages as of February 12, 2016. Upstream companies are trading at an average of 21% below their 100-day moving averages. Downstream companies are trading at an average of 25% below their 100-day moving averages.

On average, midstream companies rose by 5% at the close of trade on February 12.

Kinder Morgan (KMI) is trading 30% 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 has fallen continuously. The stock is currently trading at around $14.96.

However, KMI is trading 2.5% above its 20-day moving average. On February 12, the stock rose 7.2%. Currently, the stock is trading 66.2% below its 52-week high as of April 2015.

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Spectra Energy Partners (SEP) is trading 2% above its 100-day moving average. This is close to the performances of other midstream companies. The stock has 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 82% upside for these US (SPY) midstream companies. We can compare this to the 44.2% upside consensus estimate for large-cap upstream companies.

Over the next 12 months, midstream operators Williams Companies (WMB) and Energy Transfer Partners (ETP) could see rises of 147% and 66%, respectively, from their current levels as of February 12, 2016. The above graph shows these midstream companies’ moving averages and analysts’ estimates.

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