- Midstream pipeline operators are preparing to release Q2 earnings, starting with Kinder Morgan (NYSE:KMI) on July 18, offering investors a look at their growth plans as a flurry of oil drilling activity in the Permian Basin creates the need for more pipelines.
- Besides KMI, EQT Midstream Partners (EQT, EQM) is scheduled to report its results on July 26, followed by Williams Cos. (WB, WPZ), Dominion Energy (NYSE:D) and Enterprise Products Partners (NYSE:EPD) on Aug. 1 and TransCanada (TRP, TCP), Pembina Pipeline (NYSE:PBA) and Enbridge (ENB, EEP) on Aug. 2.
- "As any energy investor now knows, we are tight pipeline capacity out of the Permian for crude and gas," says Bernstein analyst Jean Ann Salisbury. "We believe Kinder Morgan and Williams are best positioned as they provide options to continue east to Louisiana."
- Salisbury says events in the Permian oil patch will continue to drive what happens in the gas sector, particularly on the midstream side.
- Investors also will want to hear about efforts by midstream companies organized as MLPs to overhaul their corporate structures in response to the Federal Energy Regulatory Commission's March tax policy decision; since then, ENB and WMB have announced simplification plans while Dominion and Energy Transfer Partners (NYSE:ETP) said they are weighing structure changes.
- Now read: Kinder Morgan Is Getting Back To Growth
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