|Bid||0.00 x 38500|
|Ask||18.05 x 45900|
|Day's Range||17.75 - 18.01|
|52 Week Range||14.69 - 19.85|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 16, 2018 - Oct 22, 2018|
|Forward Dividend & Yield||0.80 (4.46%)|
|1y Target Est||21.21|
Moody's Investors Service ("Moody's") changed Kinder Morgan Inc.'s (KMI) outlook to positive from stable and affirmed its Baa3 senior unsecured and Prime-3 commercial paper ratings. A complete ...
The net debt-to-EBITDA is a popular metric used to analyze MLPs’ leverage position. Using analyst-adjusted numbers, Kinder Morgan (KMI) has the highest net debt-to-EBITDA ratio among the four midstream companies that we’re comparing in this series—Kinder Morgan, Enterprise Products Partners (EPD), Williams Companies (WMB), and MPLX (MPLX).
Enterprise Products Partners (EPD) plans to spend $3.9 billion on capital projects in 2018, which is ~15% higher than its 2017 capital expenditure. The company’s expected spending in 2018 is the highest among the four midstream companies that we’re comparing in this series—Enterprise Products Partners, Kinder Morgan (KMI), Williams Companies (WMB), and MPLX (MPLX).
MPLX’s (MPLX) adjusted EBITDA grew 83% YoY (year-over-year) in the second quarter. The massive growth was mainly driven by earnings from assets acquired from Marathon Petroleum (MPC). Higher pipeline volumes and higher gathering, processing, and fractionation volumes also contributed to the company’s earnings during the quarter.
All of the four companies—Enterprise Products Partners (EPD), Kinder Morgan (KMI), Williams Companies (WMB), and MPLX (MPLX)—are trading at lower forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiples than their respective five-year average multiples. Kinder Morgan’s forward EV-to-EBITDA multiple is the lowest among the four peers.
MPLX (MPLX) has shown consistent distribution growth over the last several years. Since its IPO in 2012, MPLX has increased distributions for 22 consecutive quarters. MPLX’s coverage ratio has remained well above one over the last several years. The company intends to maintain a coverage ratio of 1.2x or higher while growing distributions 10% for 2018. Currently, MPLX is trading at an attractive yield of 6.6%.
So far, Enterprise Products Partners (EPD) has risen ~9% in 2018. The company has outperformed its peers in the midstream sector. Other top midstream players by market capitalization, Kinder Morgan (KMI) and Williams Companies (WMB) have fallen ~5% and ~1%, respectively, during the same period. MPLX (MPLX) has risen ~4% YTD (year-to-date). The Alerian MLP ETF (AMLP) is relatively flat, while the Energy Select Sector SPDR ETF (XLE) has risen ~3%.
(Repeats with no changes) By Andres Guerra Luz and Scott DiSavino Aug 10 (Reuters) - U.S. natural gas exports to Mexico hit all-time highs this month, but a slower-than-expected build out of pipelines inside Mexico has kept increases far below available capacity at the border. The latest uptick in exports, driven by demand from Mexico's power sector, occurred after several Mexican pipelines began operation, allowing U.S. companies to send more fuel across the border, RBN Energy said in a report. (For a graphic on U.S. natural gas exports to Mexico, see: https://tmsnrt.rs/2OoMqnv) Over the last decade, U.S. gas exports to Mexico via pipeline have more than tripled, to 4.9 billion cubic feet per day (bcfd) in August, according to Thomson Reuters data.
Energy Transfer Partners’ (ETP) total outstanding debt continued to grow during the second quarter of 2018 despite some recent debt reduction measures including asset sales. At the same time, Energy Transfer Equity (ETE) reported total outstanding debt of $44.6 billion at the consolidated level. Energy Transfer Partners’ leverage position has improved over the recent quarter despite an increase in total debt.
U.S. President Donald Trump's proposal to double tariffs on steel and aluminium from Turkey could push up costs even further for domestic oil and gas pipeline projects, as energy executives said they were already struggling from earlier tariff rises. There are more than a dozen U.S. energy pipelines on the drawing board, some of which are still seeking financing. Turkey delivers just 4 percent of steel mill imports, valued about $1.18 billion last year, according to the U.S. Department of Commerce.
U.S. President Donald Trump's proposal to double tariffs on steel and aluminum from Turkey could push up costs even further for domestic oil and gas pipeline projects, as energy executives said they were already struggling from earlier tariff rises. There are more than a dozen U.S. energy pipelines on the drawing board, some of which are still seeking financing. Turkey delivers just 4 percent of steel mill imports, valued about $1.18 billion last year, according to the U.S. Department of Commerce.
Targa Resources (TRGP) reported its second-quarter earnings on August 9. The company’s adjusted EBITDA for the quarter was $326 million—26% higher than the second quarter of 2017. Targa Resources’ distributable cash flow rose to $225.1 million from $196 million in the second quarter of 2017.
Kinder Morgan (KMI) expects PHP Project to offer additional capacity for consistent transportation of natural gas to the U.S. Gulf Coast.
IRAs are meant to help shield income from taxation, but buying Enterprise Products Partners could mess that up. Consider this stock instead
The natural gas price in the Permian Basin in west Texas has slumped so low this year that the annual average is on track for its lowest in 19 years, pummeled by record production and pipeline constraints ...
Kinder Morgan Texas Pipeline LLC (KMTP), a subsidiary of Kinder Morgan, Inc. (KMI), EagleClaw Midstream Ventures, LLC (EagleClaw), a portfolio company of Blackstone Energy Partners, and Apache Corporation (NYSE, NASDAQ: APA) today announced that Exxon Mobil Corporation (XOM) has signed a letter of intent to support the proposed Permian Highway Pipeline Project (PHP Project). Under the letter of intent, ExxonMobil subsidiary XTO Energy may contract for up to 450,000 dekatherms per day (Dth/d) of capacity on the pipeline.
On August 6, RBC raised its target price for Enbridge (ENB) from 54 Canadian dollars to 59 Canadian dollars. On August 4, GMP raised its target price for Enbridge to 58 Canadian dollars from 56 Canadian dollars.
Kinder Morgan Canada Ltd documents filed on Tuesday suggest expanding the Trans Mountain pipeline will cost more than current estimates and could take longer than expected to complete. In a report filed with U.S. regulators as part of Kinder Morgan's sale of the Trans Mountain assets to the Canadian government, the company's financial adviser contemplated possible capital cost increases of C$1 billion to C$1.9 billion ($766,000 to $1.5 billion), and a delay of up to one year to December 2021. Kinder Morgan has not provided a cost update since March 2017 despite numerous project delays to the C$7.4 billion project.
Kinder Morgan Canada said the Trans Mountain oil pipeline expansion will cost 26 percent more than estimated and take a year longer to complete.
The Trans Mountain oil pipeline expansion, which Canada is buying from Kinder Morgan Canada Ltd., would be profitable even if costs rose 26 percent and the project took a year longer to complete. If the cost of expanding the line increased to C$9.3 billion ($7.1 billion) and wasn’t in service until the end of 2021, the project still would generate C$126 million in distributable cash flow the following year, according to a TD Securities analysis included in a Kinder Canada filing on Tuesday. The analysis may provide some comfort to the Canadian government, which agreed to buy the pipeline for C$4.5 billion in May. When that deal was announced, Finance Minister Bill Morneau said there’d be no fiscal impact of the plan -- suggesting he didn’t expect to make or lose money on the deal.
Oil markets had a bullish start to the week as U.S. sanctions on Iran came into effect and Saudi Arabia surprisingly reduced its crude production and exports