Phillips 66 and Kinder Morgan Launch Second Open Season for 200K bbl/day Western Gateway Pipeline
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Positive Open Season Feedback: Following the conclusion of the initial open season, Phillips 66 and Kinder Morgan quickly launched a second open season for the 200K bbl/day Western Gateway pipeline, indicating strong market demand with significant binding commitments from shippers.
- Market Access Expansion: The second open season targets uncontracted capacity and introduces new access to the Los Angeles market through the planned reversal of an existing Kinder Morgan SFPP pipeline segment, enhancing supply diversity and routing flexibility for customers.
- Pipeline Construction Plan: The Western Gateway pipeline will consist of a new build from Borger, Texas, to Phoenix, Arizona, combined with Kinder Morgan's existing SFPP pipeline, with completion planned by 2029 to connect Midwest and California refinery supplies.
- Supply Chain Optimization: The project will reverse Phillips 66's Gold Pipeline to transport refined products from Midcontinent refineries back to Borger, further enhancing the supply capabilities of the Western Gateway pipeline and facilitating connections to the California and Las Vegas markets.
Analyst Views on KMI
Wall Street analysts forecast KMI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMI is 32.14 USD with a low forecast of 27.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 27.410
Low
27.00
Averages
32.14
High
38.00
Current: 27.410
Low
27.00
Averages
32.14
High
38.00
About KMI
Kinder Morgan, Inc. is an energy infrastructure company. The Company owns an interest in or operates approximately 79,000 miles of pipelines and 139 terminals. Its Natural Gas Pipelines segment includes ownership and operation of interstate and intrastate natural gas pipeline and storage systems and natural gas gathering systems and natural gas processing and treating facilities. Its Products Pipelines segment includes ownership and operation of refined petroleum products, crude oil and condensate pipelines that primarily deliver, among other products, gasoline, diesel and jet fuel, crude oil and condensate to various markets, plus the ownership and/or operation of associated product terminals and petroleum pipeline transmix facilities. Its Terminals segment includes ownership and/or operation of liquid and bulk terminal facilities and Jones Act-qualified tankers. Its CO2 segment is engaged in the production, transportation and marketing of CO2 to oil fields.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
