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

View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.