Bust: Kinder Morgan Energy Partners, LP
Even if tougher fracking restrictions come to pass, it won’t wipe out the market for shale oil and gas — and that’s where Kinder Morgan Energy Partners, LP’s (KMP) value proposition sits.
As a well-diversified midstream operator with enviable pipeline and storage assets (it owns an interest in or operates approximately 51,000 miles of pipelines and 180 terminals) KMP stands to gain from oil and gas transport growth.
As a high-yielding and investor-friendly master limited partnership, KMP is an interesting take on the sector. Its current distribution yield is 6.2%, though it looks awfully overvalued with a PEG ratio above 5 and a forward P/E of nearly 30.