StockCall Review on Kinder Morgan and Spectra Energy: Midstream Stocks offer Healthy Dividends
LONDON, February 5, 2013 /PRNewswire/ --
Oil & Gas pipelines industry is steady on its feet as shown by the recent earrings reports made by major companies. Kinder Morgan Inc. (NYSE: KMI) reported overall growth whereas Spectra Energy (NY SE: SE) has plans to grow further by making generous capital outlays, showing healthy trend. The industry expects rig drilling rates to rise, but its expectations for any major change in oil prices are muted. However, despite low oil prices, the global drilling activities are likely to remain upbeat in the near future. StockCall has released technical analysis on Kinder Morgan and Spectra Energy. These free reports can be downloaded at http://www.stockcall.com/todaysopinions
Spectra Energy Set to Report Fourth Quarter Earnings
Spectra Energy Corp. is all set to announce its fourth quarter earnings today. The company is expected to report 25 percent lower EPS while its revenue is likely to decline by 1.6 percent. However, the company had been able to boost its gross margin in the third quarter albeit its net margin dropped about 6 percent. Thus, the company is working huge strain and the results may depress its share price further. Sign up today to read our pre-earnings technical report on Spectra at http://www.StockCall.com/SE020513.pdf
On the positive side, Spectra Energy has a healthy dividend yield of over 4 percent, making it a suitable stock for income portfolios. Its MLP Spectra Energy Partners also boosted its dividend payment for the 21st consecutive, indicating robust business. Spectra Energy is looking to spend over $1.4 billion in capex over the course of 2013. The figure is higher than the capex plans of its peers like Stone Energy Corporation, which plans to spend $650 million on capital expenditure in 2013. The Capex will help Spectra Energy in building an edge over its competitors.
The company also plans to spend about $25 billion in capital expansion through the end of the decade. These capital outlays are expected to boost the company's production capacity and make it more efficient. It is also looking to grow through acquisitions as it recently acquired Express-Platt pipeline from Kinder Morgan MLP, Kinder Morgan Energy Partners. The companies are looking to finalize the deal by first half of 2013.
Kinder Morgan Acquires Copano Energy
Kinder Morgan Inc. is expanding itself on many fronts. It finalized acquisition of Copano Energy through its subsidiary Kinder Morgan Energy Partners. The deal is said to be worth $5 billion including debt. The deal emphasizes Kinder Morgan's focus on shale developments and is likely to give synergistic benefits to the company. Today's free research on Kinder Morgan is available upon registration at http://www.StockCall.com/KMI020513.pdf
The midstream company is also going forward with its LNG export plans. The company is going to collaborate with a subsidiary of Royal Dutch Shell for this purpose. It is also expanding in Canada as it announced its collaboration for the construction of merchant storage capacity in Alberta.
Kinder Morgan is the fourth largest energy outfit in the U.S. and has generous dividend policy with 4.05 percent dividend yield. The stock also grew about 15 percent in the past 12 months, offering good returns for its investors. The company recently reported its fourth quarter and full year results. It generated a major portion of its earnings from natural gas pipelines; however its Co2 business also shows growth.
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