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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 2023 and 2024 is pegged at $1.09 and $1.14 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, 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) , Profire Energy, Inc. (PFIE - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) . While Evolution Petroleum and Profire Energy carry a Zacks Rank #2 (Buy), Helix Energy sports a Zacks Rank #1 (Strong 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.
Profire Energy is mainly focused on the oil and gas industry’s upstream, midstream and downstream transmission segments. PFIE has boosted that its legacy business is doing extremely well, thanks to the resumption of maintenance work of exploration and production players.
Helix Energy is a leading player and is well-poised to grow in the favorable crude pricing environment since it primarily provides specialty services to the offshore energy industry.
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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 2023 and 2024 is pegged at $1.09 and $1.14 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, 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) , Profire Energy, Inc. (PFIE - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) . While Evolution Petroleum and Profire Energy carry a Zacks Rank #2 (Buy), Helix Energy sports a Zacks Rank #1 (Strong 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.
Profire Energy is mainly focused on the oil and gas industry’s upstream, midstream and downstream transmission segments. PFIE has boosted that its legacy business is doing extremely well, thanks to the resumption of maintenance work of exploration and production players.
Helix Energy is a leading player and is well-poised to grow in the favorable crude pricing environment since it primarily provides specialty services to the offshore energy industry.