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Understanding Kinder Morgan’s Gains Last Week

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Nov. 20 2020, Updated 10:27 p.m. ET

KMI’s price performance

Kinder Morgan (KMI) gained 1.8% last week (ended April 28, 2017), after falling 5.2% the previous week (ended April 21). The broader energy sector (XLE) was flat last week, underperforming KMI, though Kinder Morgan had underperformed XLE the previous week, and so Kinder Morgan has gained back some of the previous week’s losses.

By comparison, the NYMEX near-month WTI (West Texas Intermediate) crude oil futures price fell 0.6% week-over-week in the week ended April 28, after crude had fallen 6.7% during the previous week.

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Preliminary prospectus for Kinder Morgan Canada

Kinder Morgan Canada Limited filed a preliminary prospectus for an IPO (initial public offering) of restricted voting shares on April 24, 2017. Kinder Morgan intends to fund its Trans-Mountain expansion project by either a joint venture or an IPO. The company is expected to finalize one of the two options soon.

KMI’s 1Q17 results

Kinder Morgan announced its 1Q17 results on April 19, 2017. The company missed the consensus EPS (earnings per share) and adjusted net income estimates for the quarter. Lower contributions from SNG (Southern Natural Gas) pipeline following the 50% sale of the pipeline during 3Q16 partly impacted these results.

Efforts to strengthen the balance sheet continue

Kinder Morgan continues to work on strengthening its balance sheet. According to a letter of intent announced on April 11, 2017, DCP Midstream (DCP) will participate in the development of Kinder Morgan’s Gulf Coast Express Pipeline project. DCP Midstream is also expected to be a shipper on the pipeline.

Notably, a joint venture or IPO for its Trans-Mountain expansion project would also represent a step toward balance sheet strengthening.

In this series, we’ll take a look at KMI’s key technical indicators, short interest, and analyst recommendations for the stock. Continue reading below for more.

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