Kinder Morgan, Energy Transfer & PAA: 3 Hot Pipeline Stocks

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Kinder Morgan, Energy Transfer & PAA: 3 Hot Pipeline Stocks

 Kinder Morgan, Energy Transfer & PAA: 3 Hot Pipeline Stocks
Image source: Sergey Nivens,Shutterstock


  • Kinder Morgan’s net income was US$1.4 billion in Q1 of 2021.
  • Energy Transfer reported a net income of US$3.29 billion in the March quarter.
  • Plains All American Pipeline or PAA’s net income was US$422 million in Q1.

The recent cyberattack on the Colonial Pipeline has shaken the industry. It underscored the need to beef up security around these vital installations that are critical to the economy.

The attack had disrupted supplies to scores of businesses across the East Coast of the US. Fortunately, though, the pipeline supplies were restored on a war footing.

The oil and gas sector will likely see a strong comeback from the pandemic decline in the coming quarters as the economic activities pick up. The recovery will also benefit industries allied to the sector. Energy stocks are getting increased traction of late on the indices.

Here are three pipeline stocks to explore amid an economic recovery.

Kinder Morgan, Inc. (NYSE: KMI)

Kinder runs a vast oil and gas operation across North America. It has 144 oil-and-gas terminals and around 83,000 miles of pipelines that stores and transports crude, gas, and refinery products.

The stock closed at US$18.725 in Monday’s session, May 24.

Kinder Morgan’s market cap is US$42 billion.

The company announced a quarterly dividend of US$0.27 per share in Q1.

Kinder reported a net income of US$1.4 billion YoY. It had posted a US$306 million net loss in the same period last year.

Cash flow climbed from US$1.2 billion to US$2.3 billion YoY.

Also read: Three Utility Stocks To Watch In 2021

Energy Transfer LP (NYSE:ET)

Energy Transfer also has a similar business like Kinder Morgan with terminals and pipelines. It operates across North America, including 38 states in the United States.

The stock was down 2.58% to US$10.025 from the previous close in Monday’s session.

Energy Transfer’s market capital is US$27 billion. Its net income in the March quarter was US$3.29 billion, up US$4.14 billion in comparison to the 2020 quarter. EBITDA jumped from US$2.64 billion to US$5.04 billion and cash flow from US$1.42 billion to US$3.91 billion.

Also read: How will Electric Vehicles help Australia tackle the climate crisis?

Plains All American Pipelines LP (NASDAQ: PAA)

PAA also owns pipeline storage facilities for crude and natural gas. This publicly-traded company has business stakes in the US and Canada.

The stock closed at US$10.515, up marginally by 0.14%, in Monday’s session.

PAA has a market capital of US$7 billion. It logged US$791 million in cash flow from operations and US$422 million in net income in Q1.

Adjusted EBITDA was US$546 million.


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