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Here's Why Hold Strategy is Apt for Kinder Morgan (KMI) Stock
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The Zacks Consensus Estimate for Kinder Morgan, Inc. (KMI - Free Report) earnings for 2023 and 2024 is pegged at $1.09 and $1.13 per share, respectively, unchanged over the past seven days.
What’s Favoring the Stock?
Being a leading North American midstream energy player, Kinder Morgan, carrying a Zacks Rank #3 (Hold), has the continent's largest natural gas transportation network. The company’s natural gas pipeline assets, spread across roughly 70,000 miles, are responsible for transporting approximately 40% of natural gas produced in the United States.
Moreover, being a transporter of roughly 1.7 million barrels per day of refined products through its pipeline network across 6,800 miles, the company is the largest independent transporter of refined products in North America. Kinder Morgan also has operating interests in 140 terminals.
KMI generates stable fee-based revenues from its vast network of midstream infrastructure. The midstream player’s business model is relatively less exposed to the volatility in oil and gas prices than upstream and downstream companies.
What’s Hurting it?
However, declining contributions from commodity sales are hurting KMI. Also, there has been a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output. This could affect demand for midstream assets.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Global Partners is a leading operator of gasoline stations and convenience stores, having roughly 1,700 locations majorly in the Northeast. Over the past 60 days, Global Partners has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The royalty interest production figures of PHX MINERALS for the last four reported quarters depict significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.
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Here's Why Hold Strategy is Apt for Kinder Morgan (KMI) Stock
The Zacks Consensus Estimate for Kinder Morgan, Inc. (KMI - Free Report) earnings for 2023 and 2024 is pegged at $1.09 and $1.13 per share, respectively, unchanged over the past seven days.
What’s Favoring the Stock?
Being a leading North American midstream energy player, Kinder Morgan, carrying a Zacks Rank #3 (Hold), has the continent's largest natural gas transportation network. The company’s natural gas pipeline assets, spread across roughly 70,000 miles, are responsible for transporting approximately 40% of natural gas produced in the United States.
Moreover, being a transporter of roughly 1.7 million barrels per day of refined products through its pipeline network across 6,800 miles, the company is the largest independent transporter of refined products in North America. Kinder Morgan also has operating interests in 140 terminals.
KMI generates stable fee-based revenues from its vast network of midstream infrastructure. The midstream player’s business model is relatively less exposed to the volatility in oil and gas prices than upstream and downstream companies.
What’s Hurting it?
However, declining contributions from commodity sales are hurting KMI. Also, there has been a slowdown in drilling activities, as upstream players mainly focus on stockholder returns rather than boosting output. This could affect demand for midstream assets.
Stocks to Consider
Better-ranked players in the energy space include Evolution Petroleum Corporation (EPM - Free Report) , Global Partners LP (GLP - Free Report) and PHX MINERALS INC. (PHX - Free Report) . While Evolution Petroleum and Global Partners sport a Zacks Rank #1 (Strong Buy), PHX MINERALS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Global Partners is a leading operator of gasoline stations and convenience stores, having roughly 1,700 locations majorly in the Northeast. Over the past 60 days, Global Partners has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The royalty interest production figures of PHX MINERALS for the last four reported quarters depict significant improvement. With new wells coming online in the prolific Haynesville Shale and Bakken plays, PHX MINERALS is witnessing a production increase in royalty volumes.