|Bid||16.98 x 1000|
|Ask||17.67 x 2900|
|Day's Range||17.17 - 17.41|
|52 Week Range||14.62 - 19.71|
|Beta (3Y Monthly)||0.46|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 16, 2019|
|Forward Dividend & Yield||0.80 (4.63%)|
|1y Target Est||21.42|
Moody's Investors Service ("Moody's") downgraded the senior unsecured notes rating of Ruby Pipeline, LLC (Ruby) to Ba2 from Baa3. This rating action concludes the review of Ruby's ratings that began on November 21, 2018. The downgrade and negative outlook was prompted by the downgrade of Pacific Gas & Electric Company's (PG&E Company) senior unsecured rating to Caa3 from Ba3 on January 14, 2019.
Kinder Morgan (NYSE:KMI) reports its fourth-quarter results Jan. 16 after the markets close. Kinder Morgan's report was a mixed bag with earnings 5% higher than what analysts were expecting but revenues 3% less than the consensus estimate. Heading into Wednesday's results, owners of KMI stock are hoping it can deliver another earnings surprise. But will it? Analysts expect Kinder Morgan to deliver earnings of 25 cents on $3.9 billion in revenue. If KMI hits the consensus, it will have increased earnings and revenues by 19% and 8% year-over-year, respectively. That's the good news if you own KMI stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Too Much Debt The bad news is that Kinder Morgan continues to carry a whole lot of debt despite reaping a $1.3 billion after-tax profit from selling its Trans Mountain pipeline assets to the Canadian federal government in September for CAD$4.5 billion. While the sale extricates Kinder Morgan from a situation that would have cost it billions and taken an eternity to build, it does reduce the company's cash flow. * 10 Growth Stocks With the Future Written All Over Them However, the company's 70%-owned Canadian subsidiary, Kinder Morgan Canada (OTCMKTS:KMLGD), returned $11.40 in capital per restricted voting share in January, which should provide the parent with almost CAD$2.8 in proceeds to reduce its debt. Also, Kinder Morgan Canada is moving to sell its remaining Canadian assets at a time when seller's are getting reasonable prices, so that too should bring down the parent's debt by the end of fiscal 2019. "On the KML assets, we think they're great assets," said Kinder Morgan CEO Steve Kean in October. "We think that asset packages like this are rare, anywhere, but they're rare to come to market and they're rare to come to market in Western Canada, so we do think that it tends to be a bit of seller's market for these assets." Kinder Morgan's debt repayment from the Trans Mountain sale will come in Q1 2019. At the end of the third quarter, the company had total debt of $37 billion or almost its entire market cap. By comparison, Exxon Mobil (NYSE:XOM) had $41.2 billion in total debt at the end of the third quarter, 14% of its entire market cap. It's incumbent upon the company and CEO Kean to provide a complete discussion about its plans for deleveraging. If it's not entirely candid about this necessary piece of the ongoing Kinder Morgan turnaround, KMI stock could take a real hit in the days and weeks following its Q4 earnings announcement. ### Kinder Morgan's Plans for 2019 In December, Kinder Morgan laid out its expectations for the year ahead. The company expects to generate $5 billion in distributable cash flow ($2.20 a share), 10% higher than in 2018. Despite selling Trans Mountain, it still sees a 4% increase in adjusted EBITDA to $7.8 billion despite not having the Trans Mountain assets generating cash flow. * 7 Media Stocks That Make Prime M&A Targets By the end of 2019, it expects to have a net debt-to-adjusted EBITDA ratio of 4.5. Given it only made these comments a little over a month ago, I wouldn't expect much of a change on this front. ### The Bottom Line on KMI Stock Heading into the last two weeks of January, Goldman Sachs considers Kinder Morgan stock to be the best buy among midstream energy stocks, which it sees having a good year on the markets thanks to all the new projects coming online combined with higher volumes. It's likely just business as usual when Kinder Morgan reports its Q4 report. As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post Kinder Morgan's Q4 2018 Earnings Should Set the Table for a Strong 2019 appeared first on InvestorPlace.
# Kinder Morgan Inc ### NYSE:KMI View full report here! ## Summary * Perception of the company's creditworthiness is neutral but improving * Bearish sentiment is low * Economic output in this company's sector is contracting ## Bearish sentiment Short interest | Positive Short interest is low for KMI with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $12.55 billion over the last one-month into ETFs that hold KMI are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit There is no PMI sector data available for this security. ## Credit worthiness Credit default swap | Neutral The current level displays a neutral indicator with a strengthening bias over the past 1-month. KMI credit default swap spreads are decreasing, indicating some improvement in the market's perception of the company's credit worthiness. Additionally, they are within the middle of the range set over the last three years. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
PG&E, which provides electricity and natural gas to 16 million customers in northern and central California, faces widespread litigation, government investigations and liabilities that could potentially exceed $30 billion (£23 billion) due to the fires, the company said. The most recent fire last November killed at least 86 people in the deadliest and most destructive blaze in California history.
Kinder Morgan Is Expected to Report Higher Q4 Earnings (Continued from Prior Part) ## Analysts’ recommendations Analysts’ average target price of $21.4 implies an upside potential of 24% from Kinder Morgan’s (KMI) current price. Among the 21 analysts surveyed by Reuters covering Kinder Morgan, ten recommended a “strong buy,” eight recommended a “buy,” two recommended a “hold,” and one recommended a “strong sell.” The above graph shows analysts’ recommendations for Kinder Morgan over the last 12 months. As the above graph shows, more analysts are bullish on Kinder Morgan now than a year ago. ## Peers’ recommendations Among the 19 Reuters-surveyed analysts covering ONEOK (OKE), seven recommended a “strong buy,” five recommended a “buy,” and seven recommended a “hold.” The mean target price for ONEOK is $70.7, which implies an upside potential of ~19% from its current price. Among the 21 analysts covering Williams Companies (WMB), seven recommended a “strong buy,” ten recommended a “buy,” and four recommended a “hold.” The mean target price for Williams Companies is $31.9, which implies an upside potential of 27% from its current price. Among the 24 analysts covering Enterprise Products Partners (EPD), 11 recommended a “strong buy,” 11 recommended a “buy,” and two recommended a “hold.” The mean target price for Enterprise Products Partners is $33.2, which implies an upside potential of ~22% from its current price. Among the 17 analysts covering Energy Transfer (ET), eight recommended a “strong buy,” seven recommended a “buy,” and two recommended a “hold.” The mean target price for Energy Transfer is $21.6, which implies an upside potential of ~43% from its current price. Browse this series on Market Realist: * Part 1 - Kinder Morgan: What to Expect from Its Q4 Earnings * Part 2 - Kinder Morgan’s Q4 Revenues Are Expected to Rise * Part 3 - Natural Gas Pipelines Might Drive Kinder Morgan’s Growth
Kinder Morgan Is Expected to Report Higher Q4 Earnings (Continued from Prior Part) ## Kinder Morgan stock So far, Kinder Morgan (KMI) stock has risen ~12% in 2019. Kinder Morgan has risen more compared to the 3% rise in the broader markets and an 8% rise in the Energy Select Sector SPDR ETF (XLE). In the last 12 months, Kinder Morgan fell ~9%. XLE fell 17%, while the SPDR S&P 500 ETF fell ~6% during the same period. Strong fourth-quarter results might boost Kinder Morgan stock. The above graph compares the performance of Kinder Morgan stock with its peers over the last 12 months. Enterprise Products Partners (EPD) fell 4%, while ONEOK (OKE) rose 5% during this period. ## Kinder Morgan’s yield Kinder Morgan is trading at a yield of ~4.6%. Enterprise Products Partners is trading at a yield of ~6.4%, while ONEOK is offering a yield of ~5.7%. Williams Companies (WMB) is trading at a yield of ~5.4%. So, Kinder Morgan’s yield is on the lower side compared to its peers. Kinder Morgan expects to increase its dividends 25% in 2019—compared to 2018. ## 2019 guidance Kinder Morgan expects its distributable cash flow to increase 10% in 2019—compared to 2018. Kinder Morgan’s Elba liquefaction project and the Gulf Coast Express project are expected to contribute to its earnings in 2019. The company expects to spend $3.1 billion on growth projects, including contributions to joint ventures. Kinder Morgan targets a net debt-to-adjusted EBITDA ratio of 4.5x at the end of 2019. The ratio was at 4.6x at the end of the third quarter. Next, we’ll discuss analysts’ recommendations for Kinder Morgan before its fourth-quarter earnings. Continue to Next Part Browse this series on Market Realist: * Part 1 - Kinder Morgan: What to Expect from Its Q4 Earnings * Part 2 - Kinder Morgan’s Q4 Revenues Are Expected to Rise * Part 3 - Natural Gas Pipelines Might Drive Kinder Morgan’s Growth
Kinder Morgan's (KMI) Q4 results to benefit from extensive networks of natural gas pipelines. However, a weak balance sheet is a concern.
Kinder Morgan Is Expected to Report Higher Q4 Earnings (Continued from Prior Part) ## Natural gas pipelines Kinder Morgan’s (KMI) Natural Gas Pipelines segment’s EBDA (earnings before depreciation and amortization) grew 9% YoY (year-over-year) in the third quarter. The segment contributed more than half of Kinder Morgan’s earnings for the quarter. Growth projects and increased activity in the Bakken, Haynesville, Eagle Ford, and Permian basins might continue to drive the segment’s earnings growth in the fourth quarter. The Elba liquefaction project and the Gulf Coast Express Pipeline project are expected to contribute to the segment’s earnings in 2019. In the longer term, Kinder Morgan expects higher demand from the power sector, higher LNG (liquefied natural gas) exports, exports to Mexico, and demand from the petrochemical industry to drive the natural gas demand growth. The increase should benefit Kinder Morgan in the long term. ## Other segments While the NGL (natural gas liquid) prices in the fourth quarter softened compared to the third quarter, the prices rose YoY. Stronger volumes and higher prices should contribute to Kinder Morgan’s CO2 segment’s earnings in the fourth quarter. Kinder Morgan’s Products Pipelines and Terminals segments are also expected to report modest growth in their fourth-quarter earnings. The above graph shows Kinder Morgan’s segmental earnings over four years. Kinder Morgan forms ~2.9% of the Energy Select Sector SPDR ETF (XLE), which represents the S&P 500 Index’s energy sector. Next, we’ll discuss how Kinder Morgan stock performed. We’ll also discuss the company’s guidance for 2019. Continue to Next Part Browse this series on Market Realist: * Part 1 - Kinder Morgan: What to Expect from Its Q4 Earnings * Part 2 - Kinder Morgan’s Q4 Revenues Are Expected to Rise * Part 4 - Will Kinder Morgan’s Fourth-Quarter Results Support Its Stock?
Based on analysts’ estimates, Kinder Morgan (KMI) could report revenues of ~$3.8 billion for the fourth quarter. The estimate is ~5% higher than Kinder Morgan’s revenues in the fourth quarter of 2017. The expected fourth-quarter revenues represent 8% sequential growth. Kinder Morgan missed its revenue estimates in five of the last nine quarters. Kinder Morgan beat the estimates in the other four quarters.
Kinder Morgan Is Expected to Report Higher Q4 Earnings ## Kinder Morgan’s Q4 results Kinder Morgan (KMI) is scheduled to report its fourth-quarter results on January 16. Analysts expect its fourth-quarter EPS to be $0.26 per share—a rise of 23% YoY (year-over-year) and an 18% sequential rise from Kinder Morgan’s EPS of $0.22 in the third quarter. Kinder Morgan beat its EPS estimates in five of the last nine quarters. Kinder Morgan missed the estimates in two quarters and met the estimates in the other two quarters. The above graph shows Kinder Morgan’s EPS estimates and adjusted EPS during the last nine quarters. Kinder Morgan expects to exceed its DCF (distributable cash flow) guidance of $4.57 billion for 2018. For 2019, Kinder Morgan expects 10% DCF growth compared to 2018. ## Commodity prices WTI crude oil prices averaged $60 per barrel in the fourth quarter—lower by an average of $10 per barrel compared to the third quarter. However, the prices were higher compared to an average of $55 per barrel in the same quarter the previous year. Henry Hub natural gas prices averaged $3.8 per MMBtu (million British thermal units) in the fourth quarter—compared to an average of $2.9 per MMBtu in the third quarter of 2018 and the fourth quarter of 2017. Stronger gas prices should have supported Kinder Morgan’s fourth-quarter earnings. Plains All American Pipeline (PAA) is scheduled to release its fourth-quarter results on February 5. ONEOK (OKE) is expected to report its results in the last week of February. Williams Companies (WMB) is expected to report its earnings around February 13. Kinder Morgan accounts for ~2.9% of the Energy Select Sector SPDR ETF (XLE)—an energy ETF representing the S&P 500 Index’s energy sector. Continue to Next Part Browse this series on Market Realist: * Part 2 - Kinder Morgan’s Q4 Revenues Are Expected to Rise * Part 3 - Natural Gas Pipelines Might Drive Kinder Morgan’s Growth * Part 4 - Will Kinder Morgan’s Fourth-Quarter Results Support Its Stock?
Amid the uproar over the wildly unstable markets, the usual suspects like technology or retail garnered the most attention. However, the deterioration in oil stocks presents one of the more troubling economic indicators. While drivers appreciate the discount at the pump, a deflated energy sector typically means a slowdown in commerce. That said, the benchmark indices have witnessed a sharp rise in sentiment. For instance, the Dow Jones Industrial Average has gained over 3% this month. Likewise, oil and energy stocks have benefited the most from the resurgence. West Texas Intermediate is up over 14% in January, while the international benchmark Brent Crude Oil jumped 13%. Still, I'd take a cautious approach to oil & gas stocks at this juncture. Countries awash in "black gold," such as Saudi Arabia, are attempting to diversify their economies away from commodity dependency. They know firsthand the threat that suddenly declining prices pose. Further, efforts to artificially raise demand with production cuts have failed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But on the flipside, energy stocks offer longer-term opportunities, if you know where to look. A major oversight is the focus on quantity and not quality. For example, shale-derived oil is too light to meet industrial demand for diesel. Therefore, demand for midstream and downstream oil stocks can jump when the supply of appropriate commodities dwindles. Under the current environment, upstream oil & gas stocks present challenges. However, this segment shouldn't be ignored. Proven companies that profit from their exploration dollars could move higher, especially if the newfound bullishness in oil sustains itself. * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors Undoubtedly, this is a tricky segment. But if you have the nerve, here are five oil stocks to consider: ### BP (BP) Source: Mike Mozart via Flickr Drilling for oil is a centuries-old business. As such, it's easy to think that the industry remains an unsophisticated, crude affair, no pun intended. However, energy stocks are rapidly becoming dependent on innovative technologies, with BP (NYSE:BP) lending a recent example. A few days ago, BP announced that it discovered one billion barrels of crude in the Gulf of Mexico. Specifically, the company hit pay dirt at its Thunder Horse field, which is located off the tip of Louisiana. But what made this announcement distinct was how BP made its discovery: Using advanced seismic technology and data processing, BP accelerated its analytics. Management stated that using prior-generation tech, the Thunder Horse finding would have taken years. Now, it takes just weeks. Of course, upstreaming is risky in a volatile market due to the expenses involved in exploration efforts. But BP's seismic tech sounds like a gamechanger that separates it from lesser oil stocks. ### Kinder Morgan (KMI) Source: Roy Luck via Flickr Part of the complexity involved in assessing energy stocks is the underlying product diversity. For instance, different oil viscosities lend to variances in performance and functionality. At its most elemental level, oil and gas products serve specific needs. Understanding these nuances can help navigate you toward the best investment. With that in mind, if I had to make a pick among oil & gas stocks, I'm putting Kinder Morgan (NYSE:KMI) on my short list. In recent years, natural gas production has skyrocketed in the U.S. This has created a viable market that didn't previously exist in such scale. As a result, Kinder Morgan's midstream operations should continue to enjoy long-term demand. While KMI has exposure up and down the supply chain, its network of gas pipelines primarily rings the cash registers. Loosely speaking, the company operates a subscription business model: clients pay KMI based on the amount of gas sent through the pipelines. * 10 Stocks You Can Set and Forget (Even In This Market) No matter what happens to natural gas prices, transportation of energy-related commodities will remain a vital business venture. ### Magellan Midstream Partners (MMP) Source: Tony Webster via Flickr Over the last few volatile years, most oil stocks simply operated on survival mode. After absorbing devastating losses in 2014 and 2015, most sector players' financials look understandably awful. On the other hand, we have exceptions like Magellan Midstream Partners (NYSE:MMP). Since 2015, MMP has provided consecutive annual revenue growth, and momentum remains strong. In its most recent quarter, MMP delivered sales of $638 million, up over 11% year-over-year. Moreover, the company generates consistently positive free cash flow and features a fairly stable balance sheet. Despite the general wildness in oil stocks, MMP should continue to deliver the goods. Management is eyeing overall growth, as evidenced by the constant expansion of its refined-petroleum products pipeline in Texas. More importantly, the organization is broadening its scope while emphasizing fiscal discipline. ### Valero Energy (VLO) Source: Mike Mozart via Flickr Even compared to other troubled energy stocks, Valero Energy's (NYSE:VLO) precipitous downturn surprised many observers. After putting up outstanding numbers throughout most of 2018, the final quarter proved insurmountable. Between the beginning of October and the end of December, VLO had sunk 34%. But for current speculators, the extreme bearishness in Valero shares have taken down significant risk. For starters, we have to go back to November 2017 to see prices this low. More importantly, management has sparked a fiscal revival. Thanks to key acquisitions, Valero's revenue and profitability metrics have improved dramatically since 2016. * 7 Stocks at Risk of the Global Smartphone Slowdown I see more of the same in 2019, especially with its merger with Valero Energy Partners. Overall, the organization has solid financial standing, which has proven valuable in terms of shareholder payouts. ### Occidental Petroleum (OXY) Source: Hayden Irwin via Flickr Like other energy stocks, Occidental Petroleum (NYSE:OXY) incurred a disjointed year in 2018. In the first half, OXY appeared very promising, gaining over 15%. Unfortunately, sector turbulence combined with a broader market meltdown cratered the company. After the dust settled, OXY had shed more than 13% last year. Still, I wouldn't rule out a comeback. Since hitting a sales bottom in 2016, Occidental has been on a tear. Prior acquisitions have proved vital, with OXY returning to annual profitability in 2017, and is on course for a repeat performance in 2018. Moreover, the leadership team have anticipated multiple oil-pricing scenarios. Should a barrel of crude drop to $40, OXY asserts that it can pay its dividends, and not overspend its cash flow. The sector is volatile, but I doubt that it will get that bad. Therefore, OXY presents an intriguing contrarian case. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post 5 "Discounted" Oil Stocks to Buy After a Tough 2018 appeared first on InvestorPlace.
# Kinder Morgan Inc ### NYSE:KMI View full report here! ## Summary * Perception of the company's creditworthiness is neutral but improving * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is contracting ## Bearish sentiment Short interest | Positive Short interest is extremely low for KMI with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting KMI. ## Money flow ETF/Index ownership | Positive ETF activity is positive. Over the last month, growth of ETFs holding KMI is favorable, with net inflows of $21.56 billion. This is among the highest net inflows seen over the last one-year and the rate of additional inflows appears to be increasing. ## Economic sentiment PMI by IHS Markit There is no PMI sector data available for this security. ## Credit worthiness Credit default swap | Neutral The current level displays a neutral indicator with a strengthening bias over the past 1-month. KMI credit default swap spreads are decreasing, indicating some improvement in the market's perception of the company's credit worthiness. Additionally, they are within the middle of the range set over the last three years. Please send all inquiries related to the report to firstname.lastname@example.org. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Both energy industry companies had a rough 2018, but the pipeline giant looks better positioned to outperform from here.
Kinder Morgan (KMI) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Wall Street analysts seem very positive about Enterprise Products Partners (EPD). Almost 92% of the analysts that cover Enterprise Products Partners recommended a “buy.” The company has a median target price of $33.2—compared to its current market price of $27.1, which indicates a potential upside of 22.4% for the next 12 months.
Seven energy stocks in one specific sector, oil pipelines, are poised for a 'Goldilocks' rebound in 2019, according to Goldman Sachs and UBS. They have been pummeled by falling oil prices over the last year.