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Kinder Morgan (KMI) Creates Group to Pursue Green Opportunities

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Kinder Morgan, Inc. (KMI - Free Report) announced that it created an Energy Transition Ventures group, which will focus on low-carbon opportunities. The group is expected to pursue commercial opportunities from low-carbon initiatives, while it maintains an attractive portfolio.

The company intends to be part of the larger energy transition movement, which gathered pace amid the coronavirus pandemic. The energy demand destruction caused by the pandemic lowered oil and gas consumption all across the globe. It created an environment to boost investments toward green projects as investors have been pushing for a greater alliance with the Paris Agreement for long now. President Jesse Arenivas and vice president Anthony Ashley will lead the new group in energy transition.

Kinder Morgan, one of the largest energy infrastructure companies in North America, is eyeing services like carbon capture, renewable natural gas capture and sequestration as part of the business development opportunities. Moreover, electric transmission, hydrogen production, renewable diesel production and power generation will be on the list. The move comes at a time when public policies, government incentives and tax structures are creating a platform for a jump toward a sustainable future.

Importantly, natural gas is touted by some energy investors as the bridge between hydrocarbons and renewables. It might be the transitional fuel that will push back emissions. With its diverse midstream infrastructure, Kinder Morgan is also well-positioned to capitalize on the growing natural gas demand and rising liquified natural gas export volumes on the back of strong clean energy demand. Notably, it has brought the Movable Modular Liquefaction Unit 7 online under the Elba Liquefaction project. With this move, full commercial operations at the $2-billion Elba facility have kickstarted.

Price Performance

Kinder Morgan’s shares have increased 28.4% over the past year compared with the 55.2% rise of the industry it belongs to.

 

 

Zacks Rank & Stocks to Consider

Currently, Kinder Morgan has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Berry Corporation (BRY - Free Report) , EOG Resources, Inc. (EOG - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Berry’s bottom-line estimates for 2021 have witnessed four upward revisions and no downward movement in the past 60 days.

EOG Resources’ bottom line for 2021 is expected to increase 217.8% year over year.

Pembina Pipeline’s bottom line for 2021 is expected to increase 29.3% year over year.

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