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Here's Why Hold Strategy is Apt for Kinder Morgan (KMI) Stock
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Kinder Morgan, Inc. (KMI - Free Report) is a well-known name in the midstream energy space. The Zacks Consensus Estimate for Kinder Morgan earnings for 2024 and 2025 is pegged at $1.18 and $1.22 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 2.4 million barrels per day of refined products through its pipeline network across 9,500 miles, the company is the largest independent transporter of refined products in North America. Kinder Morgan also has operating interests in 65 liquid 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, 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.
Vitesse Energy has non-operated working and mineral interests in oil and gas assets, mainly across the prolific Bakken in North Dakota. Having interests in 6,932 productive wells, Vitesse Energy has offered a solid production outlook, assuming that the crude pricing scenario will remain extremely favorable.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it generates handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
To enhance its key asset portfolio, SM Energy has agreed to acquire oil and gas assets in the Uinta Basin from XCL Resources for $2.55 billion.
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Here's Why Hold Strategy is Apt for Kinder Morgan (KMI) Stock
Kinder Morgan, Inc. (KMI - Free Report) is a well-known name in the midstream energy space. The Zacks Consensus Estimate for Kinder Morgan earnings for 2024 and 2025 is pegged at $1.18 and $1.22 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 2.4 million barrels per day of refined products through its pipeline network across 9,500 miles, the company is the largest independent transporter of refined products in North America. Kinder Morgan also has operating interests in 65 liquid 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, 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 energy companies include Vitesse Energy Inc (VTS - Free Report) , ProPetro Holding Corp. (PUMP - Free Report) , and SM Energy Company (SM - Free Report) . While Vitesse Energy and SM Energy sport a Zacks Rank #1 (Strong Buy), ProPetro Holding carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vitesse Energy has non-operated working and mineral interests in oil and gas assets, mainly across the prolific Bakken in North Dakota. Having interests in 6,932 productive wells, Vitesse Energy has offered a solid production outlook, assuming that the crude pricing scenario will remain extremely favorable.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it generates handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
To enhance its key asset portfolio, SM Energy has agreed to acquire oil and gas assets in the Uinta Basin from XCL Resources for $2.55 billion.