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Recommendations for Top Midstream Gainers of 2019


Nov. 20 2020, Updated 5:01 p.m. ET

As 2019 comes to a close, let’s look at the top energy midstream gainers for the year. ONEOK (OKE) stock has risen 35% in 2019, outperforming its midstream peers. Phillips 66 Partners (PSXP) closely follows ONEOK with a 34% gain in 2019. Kinder Morgan (KMI) and NuStar Energy (NS) are up 31% and 29%, respectively.

All these stocks have outperformed the S&P 500 Index, which is up 27% year-to-date. Another top gainer is USA Compression Partners (USAC), which rose 24% in 2019. Notably, all these stocks offer attractive yields, adding to their total returns for the year.

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Crude oil prices

WTI (West Texas Intermediate) crude oil prices are up 31% in 2019. However, the average oil prices for 2019 are lower than in 2018. Specifically, the average crude oil price so far in 2019 is $56.70. That’s roughly 13% lower than the average prices in 2018. Lower oil prices have kept energy stock performances in check during the year.

Top midstream gainers: Kinder Morgan in 2020

Kinder Morgan recently provided its expectations for 2020. Learn more in Kinder Morgan’s 2020 Outlook Is Attractive. Of the 23 Reuters-surveyed analysts covering Kinder Morgan, three rated it as a “strong buy,” nine analysts rate it as a “buy,” and 11 analysts rate it as a “hold.” Kinder Morgan’s mean price target of $22 implies an upside potential of 9% from its current levels.

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Recommendations for ONEOK

Like Kinder Morgan, analysts are bullish on ONEOK. Of the 23 analysts covering OKE, six rated it as a “strong buy,” eight analysts rated it as a “buy,” and nine rated it as a “hold.” ONEOK has an upside potential of 4% based on its mean price target of $76.10. Learn about the top midstream gainer in Why ONEOK Stock Is Outperforming Its Peers This Year.

Analyst ratings for Phillips 66 Partners

Of the eight analysts covering Phillips 66 Partners, four rated it as a “buy,” and four rated it as a “hold.” Phillips 66 Partners’ mean price target of $60.20 implies an upside potential of 7% from its current price.

NuStar and USA Compression Partners

Seven Reuters-surveyed analysts cover USA Compression Partners. Four gave a “buy” rating for the stock, while the remaining three rated it as a “hold.” The stock’s mean price target of $19 implies an upside potential of 18% from its current levels. Learn more in Five High-Dividend Stocks You Should Watch.

In comparison, NuStar Energy didn’t receive any “buy” recommendations. Of the nine analysts covering the stock, eight rated it as a “hold,” and one analyst rated NuStar as a “sell.” The stock’s mean price target of $29.20 implies an upside potential of 8% from its current price.

Overall, USA Compression Partners has the maximum upside potential among the selected stocks, based on analysts’ price targets. In comparison, ONEOK received the highest percentage of “buy” ratings from analysts.

To learn about energy stocks, please read The US Energy Sector: An Overview. For the latest energy sector updates, refer to Market Realist’s Energy and Utilities page.


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