Those in the energy sector today can be hit by major booms and busts as commodity supply changes cause a lot of price volatility. Diversification is vital for companies in this space to pad against risk by having many different sources of revenue, so that a sudden trough in the price of one commodity doesn't dry up earnings entirely. That's why in this video, Motley Fool energy analyst Joel South highlights one thing he loves about Kinder Morgan (NYSE:KMI): Its portfolio is the best in the industry. He breaks down Kinder Morgan's diverse set of income streams, and talks about why the company is stronger as a result.
Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool owns shares of Denbury Resources and Kinder Morgan. Motley Fool newsletter services recommend Enterprise Products Partners and Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.