The expected increase in oil and natural gas production in the coming quarters should drive significant growth in pipeline projects. Also, the federal government’s decarbonization initiatives should result in higher investments in energy storage installations, thereby benefiting energy infrastructure providers Enbridge (NYSE:ENB) and Kinder Morgan (NYSE:KMI). But let’s find out which of these stocks is a better buy now. Enbridge Inc. (ENB) and Kinder Morgan, Inc. (KMI) are two leading energy infrastructure companies engaged in the transportation of oil and natural gas. Based in Canada, ENB operates through Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services segments. KMI operates through four segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments.
According to the United States Energy Information Administration, crude oil and natural gas production will increase this year because of increased drilling. An increase in production should lead to higher storage and transportation volumes. Furthermore, the Biden administration’s proposal to build sustainable energy infrastructure should position energy pipeline companies such as ENB and KMI as facilitators of renewable energy and a cleaner power grid. The push towards decarbonization and renewable energy integration should further boost these companies’ growth.
While ENB has gained 21.9% year-to-date, KMI has returned 25.6% over the same period. In terms of past three month’s performance, KMI is the clear winner with 22.4% in gains versus ENB’s 10.5% returns. But which of these stocks is a better pick now? Let’s find out.