Kinder Morgan outperformed
Kinder Morgan (KMI) stock outperformed its midstream peers in May. Kinder Morgan’s marginal rise of 0.4% in May made it an outperformer. All of the company’s top peers ended May in the red. Read Will Kinder Morgan Stock’s Momentum Continue? to learn more. The midstream sector’s performance in May tracks the fall in the broader markets. The SPDR S&P 500 ETF (SPY) fell 6.4% in May. The Energy Select Sector SPDR ETF (XLE), which tracks the performance of the S&P 500 energy sector stocks, fell 11.1% in May.
In addition to broader markets, energy stocks were impacted by a fall in crude oil prices. Crude oil prices fell 16.3% in May. However, midstream stocks outperformed broader markets and broader energy sector stocks. The Alerian MLP ETF (AMLP), which tracks the performance of the top midstream MLPs, fell 3.0% in May.
Among Kinder Morgan’s peers, Energy Transfer (ET) was one of the worst-performing stocks in May. Energy Transfer fell 9.1% in May. In comparison, Magellan Midstream Partners (MMP) fell 0.8% in May. Read Does Magellan Midstream Partners’ 6.5% Yield Look Attractive? to learn more. Plains All American Pipeline (PAA) outperformed with just a 2.3% fall in May despite the fall in crude oil prices. Enterprise Products Partners (EPD) fell 2.6% in May. The above graph compares the top midstream companies’ performances in May.
Volatility in broader markets, amid the trade war with China and border wall and tariff issues with Mexico, will likely impact midstream stocks in the coming weeks. Crude oil dynamics will likely drive the sector’s performance.