This segment is from Tuesday's edition of "Digging for Value", in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy .
With third quarter earnings season now underway, investors are focused on the third largest energy company in the United States, Kinder Morgan (NYSE:KMI). With revenue generated from Kinder Morgan's MLPs, Kinder Morgan Energy Partners (NYSE:KMP) and El Paso Pipeline Partners (NYSE:EPB), investors need to focus on areas where Kinder Morgan is vulnerable to commodity price sensitives, like KMP's CO2 EOR oil production. With 93% of cash flow generated through either fee-based contracts or hedged commodities, this business is extremely safe, so an earnings beat will likely be on the back of crude oil production in Texas.
Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends El Paso Pipeline Partners LP and Kinder Morgan. The Motley Fool owns shares of 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.