Market Overview

7 Energy Stocks SunTrust Just Initiated On


A "have" and "have-not" scenario is unfolding in the midstream energy sector, with some firms hard hit by producers' pullback and others seeing strong demand for new projects, an analyst said.

SunTrust's Tristan Richardson launched coverage on seven companies in the sector, rating four players at Buy and three at Neutral.

Richardson likes prospects for Kinder Morgan Inc (NYSE: KMI), Rice Midstream Partners LP (NYSE: RMP), Enterprise Products Partners L.P. (NYSE: EPD) and Markwest Energy Partners LP (NYSE: MWE).

The analyst favors companies with imminent and realistic plans for capital spending, along with exposure to the Marcellus and Utica basins in Appalachia and firms that offer storage and export services.

Among limited partnerships, "a clear path to distribution growth from visible assets at a sponsor that are operational with a track record" can help spur confidence, Richardson said.

Earning Neutral ratings from Richardson: Valero Energy Partners LP (NYSE: VLP), Blueknight Energy Partners L.P (NASDAQ: BKEP) and Summit Midstream Partners LP (NYSE: SMLP).

Richardson put a $48 target on Kinder Morgan, the largest U.S. midstream services provider, and said it has a substantial backlog of projects backed by customer commitments.

Rice Midstream, with a $22 target from Richardson, serves the Utica and Marcellus basins which have seen fewer rig count reductions than other regions. Rice's operations are poised to grow, Richardson said.

Enterprise Products is a market leader with an extensive backlog according to Richardson, who put a $39 target on the company.

MarketWest, with a $76 target from Richardson, is focused on the Marcellus and Utica basins, "two gas regions that offer some of the highest producer returns in the U.S.," Richardson said.

Latest Ratings for KMI

Oct 2020Credit SuisseMaintainsOutperform
Oct 2020Raymond JamesMaintainsOutperform
Oct 2020Goldman SachsUpgradesSellNeutral

View More Analyst Ratings for KMI
View the Latest Analyst Ratings


Related Articles (KMI + RMP)

View Comments and Join the Discussion!

Posted-In: SunTrust Tristan RichardsonAnalyst Color Price Target Initiation Analyst Ratings

Latest Ratings

AHCOCanaccord GenuityMaintains39.0
NTAPGoldman SachsUpgrades56.0
IBKRCompass PointUpgrades
NTAPLoop CapitalUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at