Company Update (NYSE:KMI): Kinder Morgan Inc Announces Extension for Utica Marcellus Texas Pipeline Binding Open Season
Kinder Morgan Inc (NYSE:KMI) announced it will extend its current binding open season to review shipper comments and interest received to date, as well as continue to seek commitments for the proposed Utica Marcellus Texas Pipeline (UMTP) project, which would transport natural gas liquids and condensate produced from the Utica and Marcellus basins to delivery points along the Texas Gulf Coast, including connectivity to a Kinder Morgan dock located along the Houston Ship Channel. The binding open season scheduled to end today will now end at 5 p.m. Central Time on Dec. 15, 2015.
“We continue to receive strong interest from shippers for this opportunity to transport products from the Utica and Marcellus basins to the Gulf Coast,” said Don Lindley, president of KMI’s Natural Gas Liquids (NGL), Products Pipelines. “This extension allows Kinder Morgan to align our transportation solution with shipper interests based on the feedback we’ve received on the project.”
The proposed project would involve the abandonment and conversion of 964 miles of natural gas service on KMI’s existing Tennessee Gas Pipeline, the construction of approximately 200 miles of new pipeline from Louisiana to Texas, new storage in Ohio and 120 miles of new laterals to provide basin connectivity.
The approximately $4 billion UMTP project will be designed to transport propane, butanes, natural gasoline, y-grade and condensate in batches along the system, with a maximum design capacity of 430,000 barrels per day. Subject to shipper commitments and timely regulatory approvals, the pipeline will be in service by the fourth quarter of 2018.(Original Source)
Shares of Kinder Morgan opened today at $29.86 and are currently trading up at $29.95. KMI has a 1-year high of $44.71 and a 1-year low of $28.50. The stock’s 50-day moving average is $32.48 and its 200-day moving average is $38.14.
On the ratings front, Kinder Morgan has been the subject of a number of recent research reports. In a report issued on August 20, Jefferies Co. analyst Christopher Sighinolfi maintained a Hold rating on KMI, with a price target of $39, which implies an upside of 30.6% from current levels. Separately, on August 14, Goldman Sachs’ Theodore Durbin assigned a Buy rating to the stock and has a price target of $48.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Sighinolfi and Theodore Durbin have a total average return of -4.4% and 9.4% respectively. Sighinolfi has a success rate of 38.6% and is ranked #3304 out of 3757 analysts, while Durbin has a success rate of 54.1% and is ranked #829.
Overall, one research analyst has assigned a Hold rating and 4 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 $47.00 which is 57.4% above where the stock opened today.
Kinder Morgan, Inc., owns interests in an energy transportation and storage company. The Company, through its subsidiaries, owns and operates pipelines that transport natural gas, gasoline, crude oil, carbon dioxide and other products.