Why Kinder Morgan Stock Jumped 13% in March
Shares of U.S. pipeline goliath Kinder Morgan (NYSE: KMI) rose a hefty 13% in March according to data from S&P Global Market Intelligence. That stands in contrast to some of its closest peers, which were up, but not to the same degree. Here's one key reason why.
A portion of the advance is likely due to improving expectations for the broader energy sector as oil prices have rebounded off their 2020 lows. Higher oil prices should translate into increased demand for the pipelines, storage, and other assets that Kinder Morgan owns. Higher commodity prices will specifically benefit the company's CO2 division, which generates income by helping drillers improve the output of wells with Kinder Morgan's compensation tied, at least partially, to energy prices.
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Source Fool.com
