Kinder Morgan's Portfolio Is the Best in Its Class

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.

The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record-low prices for natural gas, which increases the attractiveness of companies like Kinder Morgan. However, there is another growing MLP with a higher yield. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To find out if Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand new premium research report on the company.


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