Kinder Morgan Inc (NYSE:KMI) announced it has entered into a new, 10-year agreement with Nucor Corporation to provide in-plant services for five of Nucor’s facilities at Decatur, Alabama; Hertford, North Carolina; Berkeley, South Carolina; and two facilities at Blytheville, Arkansas. The five facilities produce approximately 13.4 million tons of steel products annually. KMI will be handling approximately 14.8 million tons annually of scrap steel, direct-reduced iron, pig iron and other feedstocks, as well as providing other ancillary services. The value of the agreement is approximately $900 million.
“Nucor is one of our largest customers in our Terminals division. This new agreement ensures that KMI will continue to provide handling, processing, warehousing and marine services to Nucor, the largest recycler and steel producer in North America,” said KMI Terminals President John Schlosser. “These facilities provide Nucor and other customers access to our growing national network of marine and rail terminals. This agreement also reconfirms KMI’s commitment to growing our terminals business.” (Original Source)
Shares of Kinder Morgan are currently trading at $18.14, down $0.16 or 0.85%. KMI has a 1-year high of $38.58 and a 1-year low of $11.20. The stock’s 50-day moving average is $17.96 and its 200-day moving average is $16.93.
On the ratings front, Kinder Morgan has been the subject of a number of recent research reports. In a report issued on June 13, BMO analyst Danilo Juvane assigned a Hold rating on KMI, with a price target of $13, which reflects a potential downside of -28.9% from last closing price. Separately, on May 24, Deutsche Bank’s Kristina Kazarian reiterated a Buy rating on the stock and has a price target of $21.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Danilo Juvane and Kristina Kazarian have a total average return of 0.9% and -7.1% respectively. Juvane has a success rate of 50.0% and is ranked #2288 out of 4005 analysts, while Kazarian has a success rate of 43.0% and is ranked #3642.
Overall, 3 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $20.50 which is 12.1% above where the stock closed yesterday.
Kinder Morgan, Inc. operates as a holding company. It owns and operates pipelines and terminals that transport natural gas, gasoline, crude oil, carbon dioxide and other products and stores petroleum products, chemicals and handle bulk materials like ethanol, coal, petroleum coke and steel. The company operates through six segments: Natural Gas Pipelines, Products Pipelines, CO2, Terminals, Kinder Morgan Canada and Other. The Natural Gas Pipelines segment is engaged in the sale, transport, processing, treating, storage and gathering of natural gas. The Products Pipelines segment is engaged in the transportation and terminating of refined petroleum products, including gasoline, diesel fuel, jet fuel and natural gas liquids. The CO2 segment is engaged in the production and sale of crude oil from fields in the Permian Basin of West Texas and the transportation and marketing of carbon dioxide used as a flooding medium for recovering crude oil from mature oil fields. The Terminals segment is engaged in the translating and storing of refined petroleum products and dry and liquid bulk products, including coal, petroleum coke, cement, alumina, salt and other bulk chemicals. The Kinder Morgan Canada segment transports crude oil and refined products from Alberta, Canada to marketing terminals and refineries in British Columbia, the state of Washington and the Rocky Mountains and Central regions of the U.S.