4 Promising Stocks From The Prospering Oil Pipeline Industry
Over the past five years, the industry has traded as high as 18.71X, as low as 8.49X, with a median of 13.46X.
Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio
4 Oil & Gas Pipeline Stocks Moving Ahead of the Pack
DCP Midstream, LP: The partnership is a leading natural gas processor in the domestic market. With a year-to-date excess free cash flow of $152 million and $1.3 billion in available liquidity, the stock is well suited for any energy investor’s portfolio. The stock, likely to see an earnings growth of 202% in 2021, sports a Zacks Rank #1 (Strong Buy).
Price and Consensus: DCP
Enbridge Inc: The company is a leading North American midstream energy player, having the longest crude oil pipeline network. Enbridge has C$10 billion worth of project backlogs that secure additional fee-based revenues.
In its recent financial guidance update, the midstream energy player mentioned its 2021 distributable cash flow (DCF) projection in the band of C$4.70-C$5.00 per share, reflecting an increase from the company’s 2020 DCF per share expectation at the midpoint of the C$4.50-C$4.80 range. The stock, carrying a Zacks Rank #3 (Hold), is likely to see earnings growth of 8.3% in 2021.
Price and Consensus: ENB
Kinder Morgan, Inc: With operating interests in oil and gas pipeline networks, spreading across 83,000 miles, Kinder Morgan is a leading energy infrastructure company in North America.
The #3 Ranked midstream energy giant announced that its projection for distributable cash flow (DCF) in excess of discretionary capital expenditures and dividend payments for 2021 stands at $1.2 billion, reflecting an uptick of more than $700 million from its 2020 guidance. Notably, the company, likely to see earnings growth of 3.9% in 2021, plans to allocate part of this excess coverage for reducing debt burden and repurchasing some shares, as a means of rewarding investors.
Price and Consensus: KMI
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