Possible Deadlock in Syrian Peace Talks Impacts Crude Oil

(Continued from Prior Part)

The large-cap midstream companies in the following table were trading 21% below their respective 100-day moving averages. Upstream and downstream companies are trading 14.7% and 12.5% below their respective 100-day moving averages. Now, US (SPY)-based midstream companies are trading 1.6% above their 20-day moving averages.

Midstream companies rose by an average of 1.2%—compared to 4.5% of large-cap upstream companies and 3.6% of downstream companies.

Kinder Morgan (KMI) and Williams Companies (WMB) were trading 28% and 42%, respectively, below their 100-day moving averages as of January 29. As on January 15, Kinder Morgan and Williams Companies were trading 47% and 55%, respectively, below their 100-day moving averages.

Only Spectra Energy (SE) managed to trade 3.4% above its 100-day moving average as of January 29. The Alerian MLP ETF (AMLP) rose by 1.1%. Currently, it’s trading 15% below its 100-day moving average.

Wall Street analysts’ consensus estimates suggest an impressive 52.4% upside for these midstream companies—compared to the 31.6% upside consensus estimates for large-cap upstream companies. Over the next 12 months, midstream operators Williams Companies and Energy Transfer Partners (ETP) could see rises of 72% and 37%, respectively, from their levels as of January 29. Below is a rundown of three other midstream operators and Wall Street analysts’ estimates for each company over the next 12 months.

• Kinder Morgan could see a 22% rise
• Spectra Energy could see a 19% rise
• Williams Partners (WPZ) could see a 61% rise

In the next part of this series, we’ll discuss the moving averages and analysts’ estimates for integrated oil and gas companies.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Investors’ Concerns: Headwinds Could Drag Crude below $30
• Part 2 - Is Syria or Something Else Bothering Top Oil Exporters?
• Part 3 - Analyzing Upstream Players’ Moving Averages