Kinder Morgan, Inc.
Why Sunoco Logistics Has the Lowest Profit Margins
Sunoco Logistics has the lowest profit margin and ROE among its peers. Its profit margin and ROE of 1.6% and 1.7%, respectively, are well below the group average.
What is XLE? Exploring Midstream Energy Company Exposure
Companies in the midstream sector that are included in the XLE portfolio include Kinder Morgan, Oneok, the Williams Company, and Spectra Energy.
What to Expect from Kinder Morgan’s Gas Transport Volumes
Kinder Morgan’s (KMI) natural gas transport volumes grew 1.4% YoY (year-over-year) in 1Q17. The growth was driven by throughput on new projects.
An investor’s guide to MLPX and its holdings, like Spectra Energy
The Global X MLP & Infrastructure ETF (MLPX) tracks the Solactive MLP & Energy Infrastructure Index. The index consists of midstream energy infrastructure MLPs and corporations.
Will Kinder Morgan benefit from increased 2015 capex?
In 2015, Kinder Morgan (KMI) has put in place a strong project pipeline that can increase capex by 21% to ~$4.4 billion.
Analyzing Kinder Morgan’s Leverage
Kinder Morgan’s adjusted net debt-to-adjusted EBITDA ratio stood at 4.5x at the end of 2018.
What Does Energy Transfer Equity’s Current Valuation Suggest?
Energy Transfer Equity (ETE) was trading at a price-to-distributable cash flow of 17.9x as of December 22, 2017, which is slightly below the last ten-quarter average of 18.0x.
What WMB’s Current Valuation Tells Us
Williams Companies (WMB) was trading at an EV-to- EBITDA multiple of 11.0x on November 15, 2017.
Is ONEOK Positioned Well Enough to Continue Growing Its Earnings?
Of the analysts surveyed by Bloomberg, 12% rated ONEOK (OKE) a “buy,” and 76% rated it a “hold.” About 12% of the analysts rated it a “sell.”
Is ONEOK Stock Currently Overvalued?
ONEOK (OKE) stock is currently trading at a forward EV-to-EBITDA multiple of 14.3x.
Which Segment Drives Kinder Morgan’s Performance?
KMI’s Natural Gas Pipelines segment Kinder Morgan (KMI) conducts its operations through five reportable segments. Natural Gas Pipelines is Kinder Morgan’s largest business segment in terms of EBDA (earnings before depreciation and amortization). In 2Q16, the segment alone accounted for 54% of the company’s total EBDA. The segment gathers, processes, transports, and stores natural gas, […]
What KMI’s Implied Volatility Tells about Its Price This Week
Based on its closing price of $19.42 on May 25, KMI stock could trade in between $19.95 and $18.89 over the next seven days.
How Tax Cut Impacted Kinder Morgan’s 4Q17 Results
The reduction of the corporate income tax rate from 35% to 21% impacted Kinder Morgan’s (KMI) results in 4Q17.
Spectra Energy’s Capital Projects Should Fuel Its Dividend Growth
Spectra Energy’s distributable cash flow for 3Q15 was $223 million, compared with $236 million in 3Q14.
Most Midstream Companies Increased Debt in 3Q15
The total debt for Williams Companies (WMB) and Energy Transfer Equity (ETE) grew by 87% and 32%, respectively, on a YoY (year-over-year) basis in fiscal 3Q15.
Why Did Cushing Crude Oil Stocks Hit a New Record?
The U.S. Energy Information Administration reported that Cushing crude oil stocks rose by 36,000 barrels to 65 MMbbls for the week ending February 12, 2016.
Targa Resources’ Valuation Could Indicate a Buying Opportunity
Targa Resources (TRGP) stock has tripled in the last year, outperforming its peers in the sector. Let’s take a look at the stock’s current valuation.
Why Kinder Morgan’s 2Q15 Earnings per Share Estimate Is Low Again
Kinder Morgan (KMI) beat analysts’ 1Q15 earnings per share estimate, but Wall Street lowered its 2Q15 estimate to $0.191 compared to $0.216 in 1Q15. That’s a decrease of 11.6%.
Will Kinder Morgan Stock Continue to Surge in 2017?
Kinder Morgan stock has risen 44% in the past year, as compared to Enterprise Products Partners’ 32% rise and ONEOK’s 162% rise.
How Institutions Played Kinder Morgan in Q4 2018
The Vanguard Group was the top institutional investor in midstream C corporation Kinder Morgan (KMI) during the fourth quarter.
87% of Wall Street Analysts Rate TransCanada a ‘Buy’
Of the analysts surveyed by Reuters, ~87% rated TransCanada (TRP) a “buy” and 13% rated it a “hold.” None of the surveyed analysts rated TRP a “sell.”
Luxor Capital Establishes New Stake in Cheniere Energy
In February 2015, Cheniere Energy announced that its 4Q14 and full-year results reported a net loss attributable to common stockholders of $158.6 million, or $0.70 per share.
How Dividend Increase Could Affect Williams Companies Stock
Williams Companies (WMB) opened ~2% higher on Tuesday, February 21, 2017, after it announced a 50% increase in dividends from $0.20 per share to $0.30 per share.
Snapshot: Valuing Williams Companies compared to its peers
Enterprise Products Partners (EPD) is the largest company by market capitalization and enterprise value, or EV, among its closest peers. By market cap, Williams Companies (WMB) follows next.
Why Energy Transfer Partners’ enterprise value is encouraging
Energy Transfer Partners’ enterprise value more than quadrupled between 2007 and 3Q14.
Why Cheniere Energy Is Weak ahead of 2Q17 Earnings
Cheniere Energy (LNG) had a weak month in July. It fell a huge 7.2%, and the weakness continues in August.
Where Williams Companies Could Trade in the Next 7 Days
Williams Companies is expected to trade at $29.18–$30.78 in the next seven days based on its closing price of $29.98 on September 27.
TRGP, CQP, and NBLX: Top Midstream Gains and Losses
Targa Resources (TRGP) was the top midstream underperformer last week. Targa Resources fell 8.0% for the week.
Will Kinder Morgan Stock Continue to Trade Weak?
Kinder Morgan is trading below its 50-day and 200-day moving average levels. The stock temporarily crossed above the 50-day moving average on September 25.
ETE and ETP: What Do Analysts Recommend Post-1Q16?
In this article, we’ll look analyst ratings for Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP) after the release of their 1Q16 data.
Why Watch Kinder Morgan’s Commodity Price Exposure in 2Q15?
Kinder Morgan operates like a toll road or fee-based business with limited commodity price exposure. About 85% of KMI’s 2015 budgeted EBDA is fee-based, and 94% is fee-based or hedged.
Will ONEOK Continue to Outperform Its Peers?
ONEOK is trading 4% above its 50-day moving average and 8% above its 200-day moving average.
Why Sunoco Logistics Revised Its 2015 Capital Expenditure Targets
Sunoco Logistics (SXL) will share the proportionate capital expenditure in the Bakken Pipeline project. This led SXL to revise its capital expenditure for 2015.
Will 1Q18 Earnings Support Enterprise Products Partners Stock?
So far, Enterprise Products Partners (EPD) stock has risen ~1% in 2018. The stock has outperformed the Alerian MLP ETF (AMLP).
Phillips 66’s Midstream segment volumes are on track
Midstream’s earnings recovery in year-to-date 2014 was aided by higher natural gas liquids (NGL) prices.
What to Notice in ETE’s and ETP’s 4Q17 Results
ETP ended 3Q17 with total outstanding debt of $34.3 billion, which represents a 4.3% increase compared to its total debt by the end of 2016.
Short Interest in KMI: Reading the Trend
Short interest in KMI is on the lower side of its average of ~2.5% over the past five years.
Berkshire’s Energy Business Rises on Rates and Utilities in 3Q
BHE’s earnings before taxes rose to $1,246 million in 3Q16 as compared to $1,153 million during the same quarter last year.
Why Kinder Morgan Rose 3% Last Week
Kinder Morgan (KMI) rose 2.9% in the week ended Monday, June 5, 2017, recovering from some of its previous losses.
Is Energy Transfer a Good Bargain?
Energy Transfer looks relatively expensive compared to its peers. Energy Transfer is trading at a forward EV-to-EBITDA multiple close to 11x.
What Institutional Investors’ Activity in ONEOK Indicates
Nearly 75% of ONEOK’s (OKE) outstanding shares are currently held by more than 800 institutional investors.
Why Is Apache Struggling with Its 100-Day Moving Average?
Apache was trading 11.8% below its 100-day moving average. Since November 27, 2015, the stock has struggled to cross its 100-day moving average.
India’s Consumer Price Index Is Tethered but Risky
The RBI had headroom to make a further rate reduction in August, but then the bank resisted, citing the rise in core inflation.
Kinder Morgan: Analysts’ Views and Target Price
Kinder Morgan is trading at a forward EV-to-EBITDA valuation multiple close to 10.3x, which is lower than many of its peers.
Berkshire Hathaway’s BHE Benefits from Power Stations in 2Q16
BHE’s earnings before taxes rose to $666 million in 2Q16, as compared to $649 million during the same quarter last year.
Do Crude Oil Prices Hold the Key to a Rate Hike in the US?
Cushing, Oklahoma WTI prices fell to $41.93 a barrel on August 17—the lowest since early March 2009. Iran flooding the market with its oil is one of the reasons for this fall.
Kinder Morgan’s Net Debt Rises $330 Million in 1Q18
Kinder Morgan’s (KMI) net debt was ~$37.0 billion at the end of 1Q18, $331 million higher than at the end of 2017.
What Might Cap Rising Crude Oil Prices?
The US crude oil (USO) supply includes domestic production and imports. The supply gets consumed as inputs to refineries and exports.
It’s a ‘Buy’ for Both Williams Companies and Williams Partners
At a broader level, 74.0% of analysts rate Williams Companies (WMB) a “buy,” and the remaining 26.0% rate it a “hold” as of August 2, 2017.
What Does Kinder Morgan’s Valuation Indicate?
Kinder Morgan (KMI) is currently trading at a forward EV-to-EBITDA multiple of nearly 12.0x.
A Look at Williams Companies’ Price Forecast amid Uncertainty
Williams Companies’ implied volatility Williams Companies’ (WMB) 30-day implied volatility was 22.8% as of June 14, 2017. Peers Energy Transfer Equity (ETE), ONEOK (OKE), and Kinder Morgan (KMI) had implied volatility of 32.5%, 22.6%, and 20.1%, respectively, as of June 14. In comparison, the Alerian MLP ETF (AMLP) has implied volatility of 17.5%. Williams Companies’ […]
ETE, EPD, KMI, and WMB: What the Current Valuations Indicate
Kinder Morgan (KMI) is currently trading at a forward EV-to-EBITDA multiple of nearly 11.4x. This is much lower than its five-year average multiple of nearly 17.4x.
Enterprise Products Has Outperformed Its Peers in 2018
So far, Enterprise Products Partners (EPD) has risen ~9% in 2018. The company has outperformed its peers in the midstream sector.
What Factors Are Driving US Natural Gas Exports?
Driven by higher exports and lower imports, the US became a net exporter of natural gas (UNG) for the first time in November 2016. US natural gas exports totaled ~202 Bcf by the end of September 2016, which is 42% higher than the five-year average of ~142 Bcf.
SPY Jumped 1.6%, Rise in Oil Prices Bolstered US Equities
January 14, 2016, saw a rally in the US equities represented by SPY and SPXL. The US dollar rose as the market showed optimism and oil prices picked up.
More than 70% of the Analysts Rate ONEOK as a ‘Hold’
Of the analysts surveyed by Reuters, 71% rated ONEOK (OKE) as a “hold.” Nearly 23% rated ONEOK as a “buy,” while 6% rated it as a “sell.”
What Does Institutional Investor Activity in TEP Indicate?
Tortoise Capital Advisors, Alps Advisors, and Salient Capital Advisors are the top three institutional investors in Tallgrass Energy Partners (TEP).
Midstream companies withstand falling energy prices, for now
Companies in the midstream sector don’t have direct exposure to falling energy prices. At least, not in the immediate term.
Must-know: Williams Companies compared to its peers
WMB’s LTM debt to EBITDA is one of the highest in the group because it has the lowest EBITDA. It also has one of the highest debt levels. This is a concern for investors.
Understanding Kinder Morgan’s Gains Last Week
Kinder Morgan (KMI) gained 1.8% last week (ended April 28, 2017), after falling 5.2% the previous week (ended April 21).
An Overview of US LNG Production and Exports
Investors may be seeing a lot of reports about rising US LNG (liquefied natural gas) exports. Let’s review the basics of LNG.
Oil Prices Fell, Dragged Top Midstream Companies Last Week
Crude oil prices fell more than 10% in the week ending November 23. The top midstream companies also fell last week.
Higher Volumes Drive ONEOK’s 2Q16 Earnings Growth
ONEOK (OKE) reported its 2Q16 results on August 2, 2016, after the Market closed. Its 2Q16 analyst-adjusted EBITDA increased 15.2%.
61% of Analysts Call Magellan Midstream Partners a ‘Buy’
On April 11, 2018, Mizuho cut Magellan Midstream Partners’ (MMP) price target from $72 to $66.
Weekly Wrap-Up: Kinder Morgan Fell Marginally Last Week
Kinder Morgan (KMI) stock fell 0.3% in the week that ended on June 8.
Oil-Focused ETF Slides with Falling Inflation
With a 3.3% drop in energy prices, the producer price index is declining while energy-based stocks are falling. August’s PPI for final demand remains unchanged compared to 0.2% in July.
API Reports a Drop in US Crude Oil Inventories
The API reported that US crude oil inventories decreased by 1.85 MMbbls (million barrels) on April 27–May 4.
Have Wall Street Analysts Changed Ratings on Kinder Morgan?
Of the analysts surveyed by Reuters, 45% rate Kinder Morgan (KMI) as a “hold,” while 55% rate the stock as a “buy.”
Kinder Morgan: Analysts Cut the Target Price Last Week
Kinder Morgan (KMI) stock is trading 7% and 9% below its 50-day and 200-day moving averages, respectively.
Spectra Energy reports mainly strong revenues and profits
From 4Q13 to 4Q14, EBITDA jumped for Spectra Energy Partners and the Western Canada Transmission & Processing segments. But, Field Services recorded a loss.
Will Kinder Morgan Gain Upward Momentum?
Kinder Morgan (KMI) stock surpassed its 50-day moving average on April 18. The stock is currently trading 3% above its 50-day moving average.
Enbridge Stock Fell 5.9% Due to Pipeline Delay, Downgrades
On March 4, Enbridge (ENB) fell 5.9% due to the expected delay in its Line 3 Replacement project.
Recommendations for Top Midstream Gainers of 2019
As 2019 comes to a close, let’s look at the top energy midstream gainers. ONEOK (OKE) stock has risen 35% in 2019, outperforming its midstream peers.
Wall Street Analysts See a 30% Upside for Kinder Morgan
On April 17, 2018, Barclays cut its target price for Kinder Morgan (KMI) from $23 to $20.
Drivers behind Williams Companies’ Recent Market Performance
William Companies (WMB) has recovered slightly after a weak August 2017, and it has risen 2.4% since last week. WMB has fallen 3.3% since the beginning of 2017.
Kinder Morgan Cuts Dividends by 75%
Kinder Morgan (KMI), the midstream energy giant, announced a ~75% quarterly dividend cut in its annual outlook release for 2016 on Tuesday.
MLPs Have Outperformed Broader Markets So Far in 2019
Top MLP and midstream stocks have performed strongly so far in 2019. Stocks surged across the board.
Kinder Morgan Fell 1.8% Last Week—What’s Next?
Kinder Morgan (KMI) fell 1.8% last week (ended October 20), while Enterprise Products Partners (EPD) and ONEOK (OKE) fell ~4.3% and ~0.8%, respectively.
An investor’s introduction to Enterprise Products Partners
Enterprise Products Partners (EPD) is one of the largest midstream master limited partnerships or MLPs and a significant component of the Alerian MLP ETF (AMLP).
Midstream mergers and acquisitions: What are the returns?
There are many reasons that prompt companies to pursue mergers and acquisitions. For midstream companies, most have to do with leverage and financing.
TRGP, KMI, and DCP to Jointly Develop Gulf Coast Pipeline
On October 4, Targa Resources (TRGP) announced a letter of intent with a Kinder Morgan (KMI) subsidiary and DCP Midstream (DCP) for the joint development of the Gulf Coast Express Pipeline project.
Will ONEOK’s 2Q16 Results Contribute to Its Outperformance?
ONEOK (OKE) has generated total returns of 86% so far in 2016. In comparison, KMI, OKS, and WMB have generated total returns of 35%, 40%, and -0.2%, respectively.
Kinder Morgan Continued to Fall Last Week
Kinder Morgan (KMI) fell 1.4% for the week ending May 12, 2017. It fell 2.1% the previous week ending May 5, 2017. XLE rose 0.7% last week.
Kinder Morgan Gained Marginally in the Week Ended March 16
Kinder Morgan (KMI) stock was up 0.5% in the week ended March 16, 2018. Crude oil prices were up 0.5% for the week.
Top Midstream Stocks Ended Last Week with Gains
The top midstream sector stocks including Energy Transfer (ET), MPLX (MPLX), and Kinder Morgan (KMI) rose during the week ending February 1.
Analyzing Trends in Top Midstream Companies’ Price Targets
Six out of the top ten midstream companies currently have a lower mean price target than they had a year ago.
Key comparison between MPLX and its peers
MPLX shows the steepest fall in its EV/EBITDA, indicating expectations for the strongest EBITDA growth among its peers here.
EPD and MPLX Have High Earnings Growth
Kinder Morgan’s adjusted EBITDA grew 7% YoY in the second quarter. The EBITDA grew at an average rate of 4% over the last six quarters.
Do US Energy Stocks Look Promising?
Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.
Highlights from Kinder Morgan’s Fourth-Quarter Earnings
Kinder Morgan reported its fourth-quarter earnings on January 16 after the markets closed. Kinder Morgan’s adjusted EPS grew ~19% YoY.
Is Kinder Morgan Stock Undervalued?
Kinder Morgan’s lower forward EV-to-EBITDA multiple indicates that the stock might be undervalued. Kinder Morgan’s EV-to-EBITDA multiple is 9.6x.
Kinder Morgan Moves Ahead with the Gulf Coast Express Pipeline
Kinder Morgan rose 0.7% last week. The stock rose 1.7% on Thursday—the day that the FID on the Gulf Coast Express Pipeline project was announced.
BlackRock Added a Major Position in Williams Companies
Of the analysts, 71.4% rate Williams Companies as a “buy,” while 28.6% rate it as a “hold” as of February 23, 2018.
Enterprise Products Partners to Spend $3 Billion on Growth
Enterprise Products Partners (EPD) spent $3.4 billion on capital projects in 2017.
Spectra Energy’s distribution and western Canada assets
In this section, we’ll look into the company’s assets in the distribution and western Canada transmission & processing segments.
MMP Expects 2.8% Growth in Its 2018 Distributable Cash Flow
Magellan Midstream Partners (MMP) expects its 2018 DCF (distributable cash flow) to be $1.1 billion—2.8% higher than its 2017 DCF. Its DCF rose 7.8% in 2017.
Is Kinder Morgan a ‘Buy’ Ahead of Its Q1 Results?
Around 76% of Reuters-surveyed analysts have rated Kinder Morgan (KMI) as a “buy” or a “strong buy” as of April 9.
The Word on the Street: What Analysts Are Saying about Kinder Morgan
The analyst average target price for KMI for the next year is $24.8, which implies a 15% price return, as compared to KMI’s current price of $21.5.
Top Midstream Stocks: Analysts’ Views and Target Prices
At the beginning of 2019, the top midstream stocks had a fairly good start. So far in 2019, the top midstream stocks have risen more than 10%.
What Drove Energy Transfer’s Q3 2018 Earnings
Energy Transfer (ET) reported its third-quarter earnings last week. Despite its strong performance, the stock has fallen more than 6% since then.