3 Energy Stocks Ready to Bounce Back
Enterprise Products Partners (NYSE: EPD), Magellan Midstream Partners (NYSE: MMP), and Kinder Morgan (NYSE: KMI) all hit price highs back in 2014 or so. Since that point, it has been tough to own them. But recently they have started to bounce higher amid increasing oil prices and higher demand for carbon fuels. Here's why this trio is in recovery mode, and why the upturn could keep going.
Enterprise, Magellan, and Kinder Morgan are all very similar in one important way: They are each focused on the midstream business. Essentially, they own collections of pipeline, storage, transportation, and processing assets that help to move oil and natural gas from where it is drilled to where it eventually gets consumed. The midstream business is largely fee-based, with this trio getting paid for the use of the assets they own. That means the price of the commodities flowing through their systems is less important than the demand for those products.
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Source Fool.com
