Kinder Morgan Has Risen 48% in 2016, What’s Next?



Year-to-date rise

Kinder Morgan (KMI) has risen 48% since the start of 2016. In comparison, Enterprise Products Partners (EPD), ONEOK (OKE), Enbridge Energy Partners (EEP), and Energy Transfer Partners (ETP) have risen 8%, 101%, 8%, and 14%, respectively, in the same period. The Alerian MLP ETF (AMLP), an ETF of the top infrastructure MLPs, has risen nearly 5%.

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KMI trades above 50-day moving average

Kinder Morgan currently trades 3.6% above its 50-day moving average and 22% above its 200-day moving average. Its 50-day moving average crossed above its 200-day moving average in August 2016. This indicates a possible upside for the stock in the near future.

Like other midstream companies, KMI has been following an uptrend since February 2016. KMI stock has shown a high correlation with crude oil prices, especially in the last couple of years. This trend is likely to continue. The above graph shows KMI’s stock price and its 50-day and 200-day moving averages.

In this series

In this series, we’ll take a look at the fundamental strengths of Kinder Morgan. We’ll analyze KMI’s price targets, segmental performance, leverage, distributable cash flow, capital expenditure, and distribution growth.

We’ll also compare its valuation with peers’. Finally, we’ll look at the key drivers of and outlook on KMI stock. Let’s begin by looking at Kinder Morgan’s key assets and operations.


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