This company is a little off the radar but getting many requests for meetings. SemGroup Corp. (NYSE: SEMG) provides the energy industry the means to move products from the wellhead to the wholesale marketplace. It provides diversified services for end-users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminaling and storing energy.
SemGroup operates through six segments: Crude, SemStream, SemLogistics, SemCAMS, SemMexico and SemGas. The Crude segment conducts crude oil transportation, storage, terminaling, gathering and marketing operations in Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Texas and Wyoming.
Investors are paid a 5.35% distribution. The consensus price target is a whopping $63.67. The stock closed Tuesday at $35.65.
Plains All American Pipeline
This is a top stock that Wall Street feels has had the power to withstand the energy downturn. Plains All American Pipeline L.P. (NYSE: PAA) owns and operates midstream energy infrastructure and provides logistics services for crude oil, NGLs, natural gas and refined products. It owns an extensive network of pipeline transportation, terminaling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains All American handles over 4.1 million barrels per day of crude oil and NGL on its pipelines.
The company also has one of the largest storage asset bases, with over 120 million barrels of liquids storage capacity at three major hubs, which are located in Cushing, Okla., Midland, Texas, and Patoka, Ill.
Investors receive a very huge 10.7% distribution. The consensus price target is $38.60. The shares closed Tuesday at $26.32.
This company has been rocked and insiders have bought big blocks of the stock at current prices and higher. Kinder Morgan Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and 165 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. Kinder Morgan is the largest midstream and third largest energy company in North America, with an enterprise value of approximately $115 billion.
In an interview last summer Richard Kinder the respected leader of the company said that mergers and acquisitions could still be in store as prices have become increasingly opportunistic. He said the MLP giant wouldn’t be making any foolish buys, but that tremendous opportunity could lie in Mexico in the pipeline system there, where the company already has one pipeline.
Kinder Morgan investors are paid an incredible 8.8% distribution. The consensus target price is $38.75. Shares closed Tuesday at $23.36.
All these companies have been killed as the energy sector is well into the second year of industry struggles. The important thing for investors to remember is the opportunity to own these industry leaders at current trading levels could be a once-in-a-lifetime opportunity for patient long-term accounts.