Why Kinder Morgan Stock Slumped 28% in the First Half of 2020
Shares of Kinder Morgan (NYSE: KMI) declined by 28.3% during the first half of 2020, according to data provided by S&P Global Market Intelligence. The driving factor was all the turmoil in the energy sector, which forced the company to alter its outlook and dividend growth plan.
Oil prices took a nasty tumble during the first half of this year. Overall, WTI, the primary U.S. oil price benchmark, fell 36%, though at one point it crashed into negative territory. This sell-off in the oil market will impact Kinder Morgan. It has direct and indirect exposure to oil prices as it produces some oil and has some volume-based contracts. As a result, Kinder Morgan now estimates that it will generate about $4.6 billion, or $2.02 per share, of distributable cash flow this year, about 8% below last year's level and 10% less than its initial 2020 outlook.
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Source Fool.com
