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Kinder Morgan Commences Bakken Pipeline Binding Open Season

Zacks Equity Research

Kinder Morgan, Inc. KMI recently announced a binding joint tariff open season, seeking for shipping commitments to transport crude from the prolific Bakken Shale play through the Hiland Crude system. A subsidiary of Kinder Morgan, Hiland Crude, LLC, and a unit of Tallgrass Energy, LP TGE, Tallgrass Pony Express Pipeline, LLC, are working together on the project.

Through their combined systems, the companies plan to transfer crude from the Bakken Shale to refineries along the Pony Express oil system and the market in Cushing, OK. The open season is expected to close on July 28, 2019.

While the Hiland Crude system can transport crude of around 88,000 barrels per day (BPD) from Bakken to Guernsey, WY, the Pony Express system is capable of delivering about 375,000 BPD from Guernsey to Cushing, and links three refineries along the path.

Kinder Morgan is a leading midstream energy infrastructure provider in North America. The company operates pipelines that are spread across 84,000 miles to transport natural gas, crude oil, condensate, refined petroleum products, CO2 and other products. Kinder Morgan owns 157 terminals that are utilized for storing liquid commodities comprising ethanol & chemicals, and petroleum products. The terminals also store and transload petroleum coke, metals and ores.

Price Performance

Headquartered in Houston, TX, Kinder Morgan has gained 35.8% year to date compared with 18% rally of the industry it belongs to.

 

Zacks Rank & Other Stocks to Consider

Kinder Morgan currently has a Zacks Rank #2 (Buy). Other top-ranked players in the energy space include Plains Group Holdings, L.P. PAGP and Holly Energy Partners, L.P. HEP. While Plains Group sports a Zacks Rank #1 (Strong Buy), Holly Energy has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.  

Plains Group’s sales growth is projected at 26.1% through second-quarter 2019.

Holly Energy’s 2019 earnings per share are expected to grow 8.8% year over year.

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Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
 
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Holly Energy Partners, L.P. (HEP) : Free Stock Analysis Report
 
Tallgrass Energy GP, LP (TGE) : Free Stock Analysis Report
 
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