|Bid||20.10 x 21500|
|Ask||20.16 x 2900|
|Day's Range||20.03 - 20.32|
|52 Week Range||14.62 - 21.50|
|Beta (3Y Monthly)||0.96|
|PE Ratio (TTM)||20.22|
|Forward Dividend & Yield||1.00 (4.97%)|
|1y Target Est||N/A|
ConocoPhillips (COP) entered into an agreement to sell some of its portfolio in Australia for $1.39 billion. Meanwhile, downstream major Phillips 66 (PSX) launched a $3 billion new buyback program.
Kinder Morgan Inc. is expected to report net income of $524.1 million, or 24 cents a share, on sales of $3.5 billion after the market closes on Wednesday, based on a FactSet survey of 16 analysts. In the same period a year ago, the company posted earnings of 21 cents a share on sales of $3.
Kinder Morgan (KMI) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
The Zacks Analyst Blog Highlights: Kinder Morgan, Wells Fargo, NVR, United Airlines and Ally Financial
It will be prudent to invest in stocks with a favorable Zacks Rank and positive Earnings ESP. Strong earnings results will likely ensure a northbound move in stock prices of these companies.
Kinder Morgan (KMI) is likely to have around 2.5 million tons per year of LNG for export, once the whole Elba Island LNG project comes online.
World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. […]
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.
The Zacks Analyst Blog Highlights: Energy Transfer, Kinder Morgan, Archrock, USA Compression Partners and CSI Compressco
Williams Companies (WMB) stock has fallen 6% while natural gas is down 15% in the last three weeks. WMB has fallen more than 15% in the last 12 months.
U.S. regulators approved Kinder Morgan's request to start production of liquefied natural gas at the first plant of its new export facility, a year after it had been originally due to begin operations, filings showed this week. It is also quite unusual among U.S. facilities, employing modular technology to build much smaller "trains," or plants, than its peers at 0.3 million tonnes a year (mtpa) capacity compared to around 5 mtpa for other U.S. trains. The Federal Energy Regulatory Commission (FERC) approved its request to "commence service for liquefaction and export activities" at the first train in a filing dated Sept. 30.
The Zacks Analyst Blog Highlights: BP, ExxonMobil, Marathon Petroleum, Transocean and Kinder Morgan
BP plc (BP) sealed an estimated $9.61 billion worth of gas deal with a South Korean buyer, while ExxonMobil (XOM) signed an agreement to divest its oil and gas business in Norway for $4.5 billion.
(Bloomberg) -- Pipeline owners that ditched a partnership structure in favor of becoming corporations are performing better than their tax-shielded peers. But that isn’t convincing everyone to convert.Even though the number of publicly traded master-limited partnerships dwindled by more than one-third in the past four years as enthusiasm for the model waned, a few stalwarts are keeping the structure, saying any possible benefits are overshadowed by the tax hit investors would incur.With the tax burden -- and additional governance measures -- that come from converting, even the promise of a higher market value and lower borrowing costs might not be enough to change minds. The giants of the pipeline partnership space -- Energy Transfer LP and Enterprise Products Partners LP -- aren’t signaling any imminent plans to ditch the MLP model.“It doesn’t look like something Energy Transfer or Enterprise would want to do,” said Simon Lack, a managing partner at SL Advisors LLC, which advises family offices and institutional investors. Being a partnership “isn’t impeding them from growing because they’re just funding their growth projects internally and with a little bit of debt.”Master limited partnerships, or MLPs, that once dominated the U.S. pipeline sector have become an endangered species since the crude-market crash of 2014-2016 diminished access to capital markets and investors frowned on dilutive new equity issuances that historically powered the sector’s growth planes.Pipeline corporations traded at 11.4 times earnings during the second quarter, excluding taxes and other expenses, according to Bloomberg Intelligence. That compared to 10 times earnings for their MLP counterparts. And while the corporations are trading at multiples in line with the five-year average, the big MLPs are about 17% below the trendline.Moreover, for the past year corporations like Kinder Morgan Inc., Oneok Inc. and Enbridge Inc. have beaten the units of Energy Transfer and Enterprise.For the billionaire founding families behind Energy Transfer and Enterprise, the biggest deterrent to conversion may be the multimillion-dollar tax obligations they would invite by abandoning the MLP haven, Lack said.The Duncan family, whose late patriarch Dan Duncan founded Enterprise, owns roughly a third of the Houston-based pipeline operator. Kelcy Warren, founder and chief executive officer of Energy Transfer, holds a 9.4% in the limited partner and controls the general partner.Tax BurdensThe tax bill that would come with being a corporation would come in around $340 million a year for the Duncans, according to Lack’s calculations. For Warren, the bill would be about $65 million annually, based on last year’s net income, but “that figure will increase over the next few years,” Lack said.Enterprise spokesman Rick Rainey declined to comment on “such rank and uninformed speculation.” Energy Transfer also declined to comment.“We don’t like paying tax. We don’t think our unitholders like us to subject them to tax,” Warren said on a conference call last year. “However, if we find that there’s compelling reason that if we have the c-corp currency that would help us fund our growth, help all of our unitholders, then we are certainly open to that, and we’ll continually look at it.”The pipeline-partnership structure, pioneered by Texas billionaire Rich Kinder in the 1990s, flourished during the first decade-and-a-half of the century, when the number publicly-traded MLPs reached about 90. But Kinder was among the first to abandon the model when the tax benefits began to be eroded by higher borrowing costs.$54 Billion EnterpriseIn a sweeping $44 billion, 2014 consolidation, Kinder rolled MLPs he controlled into a single corporation: Kinder Morgan Inc. Although the makeover lowered investor payouts, it left the company holding more cash to fund new projects or acquire rivals, Kinder said at the time.In the latest swipe at the MLP model, Elliott Management Corp. on Wednesday urged Marathon Petroleum Corp. to pursue a breakup that would include converting its pipeline MLP to a corporation and spinning off some of the shares to Marathon Petroleum investors.Elliott estimated Marathon Petroleum’s pipeline business has an enterprise value of about $54 billion, on par with that of Kinder, according to a 45-page presentation published Wednesday.Aside from the tax implications, though, any MLP mulling a conversion to a corporation would have to comply with governance standards their billionaire backers may be loathe to entertain, said Jeff Jorgensen, portfolio manager and director of research at Brookfield Asset Management Inc.’s Public Securities Group.“They would have to change their board, they would have to change the way they operate from a corporate governance standpoint,” Jorgensen said. “In doing so, they open themselves up to activism. If you think about an Energy Transfer, does Kelcy Warren just invite activism tomorrow?”(Updates with response from Energy Transfer in 11th paragraph)To contact the reporter on this story: Rachel Adams-Heard in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Energy Transfer stock is currently trading at a distribution yield of 9.4%, one of the highest among its peers. Its historical average yield is around 7%.
A new $1.75 billion natural gas pipeline went into service in Texas on Wednesday with enough capacity to supply 10 million U.S. homes per day. Kinder Morgan Inc started commercial service on its 2 billion cubic feet per day (bcfd) Gulf Coast Express natural gas pipeline slightly ahead of schedule, providing much-needed takeaway capacity from the Permian region in West Texas and eastern New Mexico. The Permian is the biggest U.S. production area for crude and the second biggest for natural gas.