The energy sector has attracted much investor attention so far this year on rallying oil and natural gas prices amid rebounding demand. The industry tailwinds have favored Kinder Morgan 's (NYSE:KMI) financial performance in the latest quarter. However, we think KMI’s near-term prospects look uncertain given the continued spread of the COVID-19 Delta variant, which could hinder future energy demand. Let’s discuss.Operating as one of the largest energy infrastructure companies in North America, Kinder Morgan (KMI), in Houston, Tex., transports natural gas, gasoline, crude oil, carbon dioxide (CO2), and more through its pipelines. The company’s terminals store and handle petroleum products, chemicals, and other products. KMI holds interest in or operates approximately 83,000 miles of pipelines and 144 terminals.
The stock has gained 46.4% in price over the past year and 35.7% year-to-date to close its last trading session at $17.85. Furthermore, KMI is trading above its 50-day and 200-day moving averages. This can be attributed to optimism surrounding the oil and gas industry as the energy prices reach record highs amid rebounding fuel demand.
Rebounding fuel demand has boosted the pipeline operator's volumes significantly. KMI’s gasoline volumes jumped 9%, while its jet fuel volumes surged 56% for the third quarter. In addition, increasing liquefied natural gas exports mainly to Europe and Asia with the nearing winter heating season has increased its gas pipeline volumes. "We continue to benefit from growing global natural gas demand. Our assets are well-positioned to serve growing domestic markets and export locations for LNG and Mexico," said Chief Executive Officer Steve Kean. KMI also reported better-than-expected revenue growth for the quarter.