11/10/2023 0 Comments Geoffrey project runwayThe moat surrounding the incumbents is wide and deep. KMI has one of the largest footprints in the energy infrastructure space, making them extremely attractive. Seeking Alpha Kinder Morgan is one of the largest energy infrastructure companies, and continued consolidation should make their assets more valuableĪfter each new acquisition or merger takes place, KMI looks more interesting to me. I have indicated that I think the entire space is undervalued, and as more companies are rolled up into larger entities, I believe it will make the value of current assets appreciate. KMI has 82,000 miles of pipeline and 140 terminals while transporting 40% of the natural gas produced in the United States. As further consolidation occurs, I think Kinder Morgan ( NYSE: KMI ) looks more attractive as fewer chess pieces remain on the board. In previous articles on energy infrastructure companies, I have speculated that further consolidation in the space would occur as large companies looked to expand their footprint and benefit from economies of scale. Most recently, Enbridge ( ENB ) made the headlines on 9/5/23 after announcing it would acquire 3 gas utilities from Dominion Energy ( D ) for $14 billion. Energy Transfer ( ET ) announced it would acquire Crestwood Equity Partners ( CEQP ) for $7.1 billion on 8/16. On 9/21, shareholders of OKE and MMP approved the merger. ONEOK ( OKE) announced that it would acquire Magellan Midstream Partners ( MMP) in a deal valued at $18.8 billion on 5/14/23. M&A activity is heating up in the energy infrastructure space.
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