These 3 Energy Stocks Are Ridiculously Cheap
The oil market downturn left a wave of destruction in its path, not sparing any company that operated in the sector. While plunging oil prices hit producers the hardest, energy infrastructure companies also saw their values plummet despite the fact that most generated steady fee-based cash flow throughout the cycle. Thanks to the sell-off, many of these companies now trade at ridiculously cheap valuations, including CorEnergy Infrastructure Trust (NYSE: CORR), Kinder Morgan (NYSE: KMI), and EnLink Midstream Partners (NYSE: ENLK). Those discounted prices provide investors with a chance to lock up an appealing income stream that appears poised to grow now that the oil market is getting back to normal.
CorEnergy Infrastructure Trust is unique in the energy sector in that the company is a real estate investment trust (REIT) as opposed to a master limited partnership (MLP). CorEnergy leases its assets to one tenant while MLPs typically lease theirs to multiple customers. The single-tenant focus of CorEnergy weighed on the company's value during the downturn because two of its primary customers declared bankruptcy. However, because its assets are critical to the operations of customers, these leases survived the bankruptcy proceedings.
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Source: Fool.com