After the recent drop in oil prices, it's more important than ever to select energy stocks with caution. Companies that have less direct exposure to commodity prices are likely to perform better in periods of volatile commodity pricing.
One such company is Kinder Morgan (NYSE: KMI). It's managed to grow its earnings over the years and can continue to do so because it's far stronger than it was in 2014.
The biggest current concern of energy investors is the impact of a steep drop in oil prices on stocks. Kinder Morgan stands comparatively better here compared to energy companies with upstream operations or ones with greater oil exposure . The company expects that every $1 drop in the price of WTI crude will reduce its 2020 budgeted distributable cash flow (DCF) by $5 million.
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Source: Motley Fool
(March 20, 2020 - 9:03 AM EDT)
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