Week Thoughts: Frozen Out
The market rebounded this week, but energy stocks struggled and so did midstream. Higher interest rates held back income-oriented equities, including utilities and infrastructure. Midstream did better than those groups. While it was extremely cold across nation, front month natural gas prices dropped 24% after rallying last week. In general, there is still just too much supply of all things hydrocarbon.
In terms of company-specific news, Kinder Morgan’s results were a modest disappointment, offset by positive updates on capital return from OKE and ENLC. Earnings season won’t really kick in for another week, so it could be another quiet week ahead, aside from dividend announcements or any potential capital markets activity.