KMI rose 0.5%
The Alerian MLP ETF (AMLP) and the Energy Select Sector SPDR ETF (XLE) were down 3.1% and 1.7%, respectively. Crude oil prices were up 0.5% for the week. You can learn about the latest factors impacting crude prices in Gasoline and Distillate Inventories Are Affecting Crude Futures.
Kinder Morgan stock is trading 7.0% below its 50-day moving average and 11.0% below its 200-day moving average. The chart above compares KMI stock with its peers in the last week.
FERC’s policy revision
In a statement released on March 15, Kinder Morgan stated that a likely adjustment in FERC-regulated (Federal Energy Regulatory Commission) rates for pipelines due to a change in tax rates isn’t expected to materially impact Kinder Morgan’s distributable cash flow.
The company noted that many of its rates are based on negotiated rate arrangements. Further, many of its rates are below FERC’s maximum tariff rates and won’t be impacted due to a change in maximum rates.
In a separate action, FERC disallowed income tax allowance cost recovery in interstate MLP pipeline rates. This impacts many MLPs but not Kinder Morgan, which is organized as a C corporation.
For a comparison of Kinder Morgan’s total returns with its peers, the company’s history, its asset footprint, and capital expenditures, please read What’s Impacting Kinder Morgan Stock?