|Bid||0.00 x 0|
|Ask||20.00 x 300|
|Day's Range||16.34 - 16.98|
|52 Week Range||15.06 - 24.71|
|PE Ratio (TTM)||17.81|
|Earnings Date||May 2, 2017 - May 8, 2017|
|Forward Dividend & Yield||2.26 (13.32%)|
|1y Target Est||24.50|
Of the analysts surveyed by Reuters, 48.0% rated Kinder Morgan (KMI) as a “hold,” while 52.0% rated the stock as a “buy.” The mean target price for Kinder Morgan is $22.00. Kinder Morgan stock is trading at $16.41. If Kinder Morgan achieves its target price, it would imply a 34.0% upside in a year.
Energy Transfer Partners (ETP) and the midstream sector have been very weak in recent trading sessions. Energy Transfer Partners has lost 10.0% since the beginning of March. At the same time, the Alerian MLP ETF (AMLP) has lost 5.7%.
Ever since the Federal Energy Regulatory Commission announced a ruling that prevents some master limited partnerships from using an important tax allowance, analysts have been defending the stocks, not that it has mattered. In a note today, East Daley Capital’s Justin Carlson tried to parse the impact on various MLPs. Kinder Morgan’s (KMI), however, doesn’t look that shielded from the changes, Carlson claims, while Williams Cos. (WMB) and Spectra Energy (SEP) have some of the biggest exposure, by his count, but also have some asset-specific mitigating factors that can limit the downside.
Master limited partnerships took a hit last week following news that they would no longer be able to "recover an income tax allowance in cost of service rate." As a result, Williams (WMB) fell to the bottom of the S&P 500 on Thursday, and the Alerian MLP ETF (AMLP) sold off more than 5%. Analysts have been arguing that investor worries are overblown, and Mizuho’s Brian Zarahn echoed that today. Yes, the decision raised concerns about the impact on MLP cash flows, but companies have also come out saying that the impact wont’ be as bad as feared, Zaharan says. As such, he called the weakness a buying opportunity, especially for some of his favorite names, Energy Transfer Partners (ETP), Enterprise Product Partners (EPD), Plains All American Pipeline (PAA), and Valero Energy Partners (VLP).
Looking ahead, the FERC policy revision signals significant future changes on how the pipeline partnerships will go about treating income taxes in their books of accounts.
A U.S. appeals court overturned a District Court's preliminary injunction that prevented construction on part of Energy Transfer Partners LP's Bayou Bridge crude oil pipeline in the Atchafalaya Basin of Louisiana. In February U.S. district judge Shelly Dick issued a temporary injunction preventing work on an extension to the Bayou Bridge system, revoking a permit and siding with environmentalists and fishermen who expressed concerns about its potential effect on the local economy and wildlife.
Fortunately, the Fifth Circuit heard the case on an expedited basis on March 13, 2018, and issued its decision staying the preliminary injunction two days later. That prompt action did not allow Judge Dick’s preliminary injunction to stand a second longer than necessary.
Pennsylvania environmental regulators on Friday issued another notice of violation to Energy Transfer Partners LP's Sunoco Mariner East 2 natural gas liquids pipeline for releasing drilling fluids into a stream. The company told the Pennsylvania Department of Environmental Protection (DEP) it released about 50 gallons of fluid into the Snitz Creek on Thursday while drilling under the steam in West Cornwall Township in Lebanon County, about 30 miles east of the state capital Harrisburg. It was ETP's third inadvertent release into the Snitz Creek, following spills in August and September 2017.