Kinder Morgan Vs. Enterprise Products Partners

• Kinder Morgan is one of the largest mid -road operators in North America.

• Enterprise Products Partners is one of the largest mid -road operators in North America.

• One of these two giants in the middle of the road has a better record of paying investors reliably to get around.

• 10 shares we love better than Kinder Morgan ›

If you are looking at Children Morgan (NYSE: KMI) And the return of his profits by 4.1 %, you must also take into account Foundation’s products partners (NYSE: EPD) And 6.8 % distribution revenue. But the reason for the Foundation’s preference over Kinder Morgan has nothing to do with the return, especially if you are an investor who focuses on profits. Here is what you need to know to make a decision between these two giants in the middle of the road.

From the big photo perspective, Kinder Morgan and Enterprise Products are running in Energy sector. This sector is famous as volatile, thanks to the great impact that oil and natural gas prices cause on the financial results of most energy companies. But not all energy companies, since Kinder Morgan and Enterprise are largely, they receive fees to move oil and natural gas around the world.

Basically, these players sit midway between the source (energy production) and the estuary (chemicals and refining). the PipelinesThe storage and transport assets they possess are generated, as the price of goods move through their systems much is much important than the demand for the services they provide. The energy demand tends to be somewhat high even when the energy prices are low. So both Kinder Morgan and Enterprise have attractive and reliable business models in the manufacture of a volatile industry.

From this perspective, Kinder Morgan and Enterprise are very similar. It is also very similar when it comes to the size of their assets, which is the largest of which is in North America. In fact, each of the companies has market covers within $ 60 billion to $ 70 billion. But it is not alterated.

In the middle of the road, investments are generally considered the trusted income flow they provide to investors. The noble profits of Kinder Morgan and Enterprise are part of that story. However, there is a back date that investors should not be ignored.

In 2016, the energy sector was going through a difficult period. The institution increased its distribution. Kinder Morgan reduced its distribution by 75 %. To be fair, this was the correct step for the company, but it was a terrible result of income investors. However, the real problem is that just two months before the reduction, the administration directed an increase in profit distributions by up to 10 %.