CryptoCurrency
This Top Energy Stock Has Never Seen as Rich an Investment Opportunity as It’s Experiencing Right Now
Kinder Morgan‘s (NYSE: KMI) co-founder and executive chair, Richard Kinder, knows the natural gas midstream space as well as anybody. He’s helped build the company into the country’s leader in natural gas infrastructure. Kinder Morgan operates 60,000 miles of gas pipelines (which move 40% of the country’s gas production) and has interests in 702 billion cubic feet of working gas storage capacity (15% of the country’s total). He’s played a role in developing many of those assets over the years to help support the growing demand for gas.
That demand is stronger than ever, according to his comments on the recent third-quarter earnings conference call. This view drives the pipeline company’s confidence that it should grow meaningfully for years to come.
Rich in opportunities
Richard Kinder led off Kinder Morgan’s third-quarter conference call, as he always does, by providing an outlook on the natural gas market. He reminded listeners, “Over the past few quarters, I’ve talked about our view of the future demand for natural gas, with strong growth being driven by LNG exports, exports to Mexico, and electric generation.” Those catalysts could add another 20 billion cubic feet per day (Bcf/d) of incremental natural gas demand by 2030 (from last year’s level of 108 Bcf/d).
On top of that, a new catalyst is emerging. Kinder noted that the sector is “benefiting from the tremendous needs of AI and data centers.” Data centers require an incredible amount of electricity, while those running AI applications need even more. That’s driving the view that the country’s electricity usage will surge, growing at a 2% to 4% annual rate through 2030. Kinder Morgan estimates this could fuel the need for 3-6 Bcf/d of additional gas demand, with the potential upside for 10+ Bcf/d.
The company believes these catalysts will substantially and positively impact its growth. Kinder commented, “In fact, in my decades of experience in the midstream arena, I’ve never seen a macro environment so rich with opportunities for incremental build-out of natural gas infrastructure.” He expects the company to be a major player in developing the infrastructure needed to support growing gas demand. “As these projects come online, we should be able to grow our EPS, EBITDA, and DCF [distributable cash flow] on a consistent and sustainable basis for years to come,” he said.
A growing list of projects in the pipeline
Kinder Morgan has already started capitalizing on the growing need for more gas infrastructure. Kinder discussed a couple of the projects it recently approved. He noted that “In July, we announced the approximate $3 billion South System Expansion 4 Project, which is underpinned by long-term shipper commitments and designed to increase our Southern Natural Gas south line capacity by approximately 1.2 Bcf per day, helping to meet growing power generation and residential commercial demand in the Southeastern U.S. market.” The company will fund $1.7 billion of the project’s cost. It expects the expansion will enter commercial service in late 2028.
Meanwhile, “Today, we are announcing the expansion of our GCX system in Texas, which will enable our customers who have signed long-term throughput agreements to move substantial additional gas out of the Permian Basin,” he said. The company will fund $161 million of the $455 million project, which should enter service by the middle of 2026.
The company “expect[s] to announce additional significant projects over the next several months that will allow us to expand and extend our network to better serve the needs of our customers and benefit our bottom line,” stated the co-founder on the call.
CEO Kim Dang discussed some of the opportunities on the call. “Current discussions on power opportunities total well north of the 5 Bcf a day we mentioned in the second quarter. Our internal number for growth in the overall natural gas market is roughly 25 Bcf a day over the next five years.” She then ran through a myriad of factors driving this demand. On the power side, population and business migration to the southern half of the country is driving increased energy demand in already tight markets.
Meanwhile, the CHIPS act, lower raw materials prices, and national security are driving onshoring and nearshoring of manufacturing. On top of that, renewables growth is driving gas demand to offset their intermittency. “And of course, data center demand has skyrocketed,” Dang said. “Regardless of the demand driver, one project often creates a need for a subsequent project.”
Dang noted that the company has a few very large projects under development in the $1.5 billion-$2 billion range. However, most are smaller “singles and doubles.” While the company won’t capture all these projects, and the larger ones will take a while to come to fruition, “the opportunity set has continued to increase over the course of this year, and the conversations are becoming more focused and specific.”
Lots of fuel to grow
Kinder Morgan’s co-founder has never seen such a rich opportunity to expand the business. Multiple demand drivers are fueling the need for a lot more gas in the future, which means the country will need more gas infrastructure. As a leader in the space, Kinder Morgan is in a prime position to capitalize on this opportunity. It should power meaningful growth for the company in the coming years, making it look like a great stock to buy for the long term.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,121!*
-
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,917!*
-
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $370,844!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of October 14, 2024
Matt DiLallo has positions in Kinder Morgan. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy.
This Top Energy Stock Has Never Seen as Rich an Investment Opportunity as It’s Experiencing Right Now was originally published by The Motley Fool
The habits of millionaires are a topic of interest when it comes to financial advice. After all, unless they received a large chunk of money as an inheritance or gift, most millionaires had to be smart with their money to get where they are.
Learning how millionaires accumulate wealth — and where they keep it — can provide valuable insights for anyone focused on growing their money. One common question is whether or not millionaires keep money in checking accounts.
Studies show that in recent years, millionaires are keeping a significant portion of their wealth in cash. According to CNBC’s , that portion was about 24% in 2023. While this doesn’t necessarily mean a quarter of a millionaire’s wealth is sitting in a checking account, it does indicate the importance of maintaining liquid assets. And a checking account can be a helpful tool for doing so — whether or not you’re a millionaire.
Anyone, regardless of net worth, can find value in a checking account. Checking accounts allow unlimited deposits and withdrawals, check writing, bill pay, and other features to help you manage your money day-to-day.
While millionaires may keep large portions of their wealth in other deposit accounts and investments, some may use a checking account to manage daily spending. Millionaires also recognize the importance of having liquid assets, like funds in checking and savings accounts. Accessible cash lets you cover unexpected expenses without needing to sell off investments, borrow money, or pay a penalty for tapping your retirement savings early.
The amount of money a millionaire keeps in their checking account is highly personal and depends on preference. However, because checking accounts rarely earn competitive — if any — interest, some millionaires intentionally limit their checking account balance. Some may choose to keep the bare minimum, such as a couple of months’ worth of essential expenses, in their checking accounts, keeping the rest of their wealth in more lucrative assets.
Regardless of preference, it would be surprising for a millionaire to keep more than $250,000 in a single checking account. That’s because the Federal Deposit Insurance Corp. (FDIC) only insures up to $250,000 in deposits per institution, per account holder.
While millionaires may use checking accounts for day-to-day financial transactions, they may also use some of the following accounts in addition to, or in place of, a checking account:
-
Savings accounts: Like checking accounts, savings accounts provide a high degree of liquidity, allowing you to access your money as needed for regular or unexpected expenses. High-yield savings accounts, in particular, give millionaires an extra bang for their buck. Some of the best accounts currently offer rates upwards of 4% versus the national average savings account rate of 0.46%.
-
Cash management accounts: Cash management accounts (CMAs) pay competitive interest rates while maintaining more accessibility than a savings account. Some CMAs come with a debit card and ATM access, and many provide extended FDIC coverage limits by “sweeping” additional deposits into partner banks. CMAs are available at brokerages, not banks, facilitating easy transfers between investment and cash accounts.
-
Money market accounts: Similar to CMAs, money market accounts combine features of checking and savings accounts, often paying competitive interest rates and providing check writing and ATM access. Banks and credit unions offer these accounts, which are federally insured. Minimum opening deposit and minimum balance requirements are often higher than those for standard savings accounts.
-
Retirement and tax-advantaged accounts: Millionaires understand the importance of investing for their later years, and retirement accounts such as 401(k)s and IRAs allow them to do so in a tax-advantaged way. Some retirement accounts, like 401(k)s, are offered by certain employers. Others, such as traditional and Roth IRAs, are available to anyone.
-
Brokerage accounts: The IRS limits contributions to tax-advantaged accounts, and millionaires typically invest beyond these limits. They do so with taxable brokerage accounts, which can hold investments such as stocks, bonds, and mutual funds without contribution limits.
-
Other investments, like real estate, commodities, and art: Some millionaires may decide to diversify their portfolio with other investment types. These could include real estate investments, such as investment properties or real estate investment trusts (REITs); commodities, such as metals or energy products; art; and more.
The amount of money millionaires keep in their checking accounts depends on personal preference. While some millionaires may keep six figures in their checking account to maintain a comfortable cash cushion, others may choose to keep the bare minimum in checking. You wouldn’t expect millionaires to keep more than $250,000 in a checking account, however, because balances over this threshold aren’t typically insured.
There’s no single bank that’s a favorite among millionaires; it’s another matter of preference. However, millionaires are likely to bank with institutions that offer private banking to those who meet specific financial requirements. Private banking may include wealth planning services, waived fees, dedicated bankers, and additional perks. J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires.
Billionaires may have checking accounts, but they likely use accounts that cater to ultra-high-net-worth individuals. These accounts may come with perks such as a dedicated banker, waived fees, and competitive interest rates. Alternatively, billionaires may opt for a cash management account with higher FDIC insurance coverage limits and checking account features.
No rule says you can’t have a million dollars in a checking account, but FDIC insurance typically only covers up to $250,000. Plus, you can get a bigger return on your investment by keeping $1 million elsewhere. One alternative is a cash management account, which acts like a checking account but generally earns higher interest. Plus, many cash management accounts insure more than the standard $250,000 by sweeping funds into multiple partner banks.
Lumen Technologies, Inc. (NYSE:LUMN) shares are trading higher on Monday after the company announced it is partnering with Meta Platforms, Inc. (NASDAQ:META) to significantly increase Meta’s network capacity and help drive its AI ambitions.
Lumen’s partnership offers Meta enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and enabling it to serve billions daily.
Ashley Haynes-Gaspar, Lumen’s EVP and chief revenue officer, said, “We’ve transformed our company to meet this demand. As Meta’s customers use more AI services across its platforms, we’re helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs.”
Lumen Technologies said its Private Connectivity Fabric enables long-term network capacity for Meta’s AI.
Alex-Handrah Aimé, director of Meta’s Network Investments stated, “Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways.”
Lumen will report third quarter 2024 results on November 5, 2024.
Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) and First Trust Cloud Computing ETF (NASDAQ:SKYY).
Price Action: LUMN shares are up 9.50% at $7.38 at the last check Monday.
Image via Shutterstock
Read Next:
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CoinShares said the United States and Bitcoin led crypto investment product dynamics last week amid growing optimism over a potential Republican election win in the US.
Bitcoin’s private keys won’t be breached any time soon, but the industry still needs to transition to “post-quantum cryptography.”
Despite record European inflows, Bitcoin has been unable to recover above the $70,000 psychological level since July.
Apechain mainnet launch and LayerZero’s integration translated to 100% price upside for APE in recent days.
-
Science & Environment1 month agoHyperelastic gel is one of the stretchiest materials known to science
-
Technology4 weeks agoIs sharing your smartphone PIN part of a healthy relationship?
-
Science & Environment1 month ago‘Running of the bulls’ festival crowds move like charged particles
-
Science & Environment1 month agoMaxwell’s demon charges quantum batteries inside of a quantum computer
-
Science & Environment1 month agoHow to unsnarl a tangle of threads, according to physics
-
Technology1 month agoWould-be reality TV contestants ‘not looking real’
-
Science & Environment4 weeks agoX-rays reveal half-billion-year-old insect ancestor
-
Science & Environment1 month agoSunlight-trapping device can generate temperatures over 1000°C
-
Science & Environment1 month agoLiquid crystals could improve quantum communication devices
-
Science & Environment1 month agoQuantum ‘supersolid’ matter stirred using magnets
-
Technology3 weeks agoUkraine is using AI to manage the removal of Russian landmines
-
Womens Workouts4 weeks ago3 Day Full Body Women’s Dumbbell Only Workout
-
TV3 weeks agoসারাদেশে দিনব্যাপী বৃষ্টির পূর্বাভাস; সমুদ্রবন্দরে ৩ নম্বর সংকেত | Weather Today | Jamuna TV
-
Science & Environment1 month agoLaser helps turn an electron into a coil of mass and charge
-
Science & Environment1 month agoWhy this is a golden age for life to thrive across the universe
-
Science & Environment1 month agoA new kind of experiment at the Large Hadron Collider could unravel quantum reality
-
Science & Environment1 month agoQuantum forces used to automatically assemble tiny device
-
News3 weeks agoMassive blasts in Beirut after renewed Israeli air strikes
-
News3 weeks agoNavigating the News Void: Opportunities for Revitalization
-
Football3 weeks agoRangers & Celtic ready for first SWPL derby showdown
-
News3 weeks ago▶ Hamas Spent $1B on Tunnels Instead of Investing in a Future for Gaza’s People
-
Science & Environment1 month agoA slight curve helps rocks make the biggest splash
-
Science & Environment1 month agoNerve fibres in the brain could generate quantum entanglement
-
Science & Environment1 month agoHow to wrap your mind around the real multiverse
-
Business3 weeks agoWhen to tip and when not to tip
-
MMA3 weeks agoJulianna Peña trashes Raquel Pennington’s behavior as champ
-
Business3 weeks ago
DoJ accuses Donald Trump of ‘private criminal effort’ to overturn 2020 election
-
Technology3 weeks agoSamsung Passkeys will work with Samsung’s smart home devices
-
Science & Environment1 month agoITER: Is the world’s biggest fusion experiment dead after new delay to 2035?
-
Science & Environment1 month agoNuclear fusion experiment overcomes two key operating hurdles
-
News1 month ago▶️ Hamas in the West Bank: Rising Support and Deadly Attacks You Might Not Know About
-
News1 month ago▶️ Media Bias: How They Spin Attack on Hezbollah and Ignore the Reality
-
Technology3 weeks agoMicrophone made of atom-thick graphene could be used in smartphones
-
MMA3 weeks agoPereira vs. Rountree prediction: Champ chases legend status
-
MMA2 weeks ago‘Uncrowned queen’ Kayla Harrison tastes blood, wants UFC title run
-
Sport3 weeks agoWales fall to second loss of WXV against Italy
-
Science & Environment1 month agoTime travel sci-fi novel is a rip-roaringly good thought experiment
-
Technology4 weeks agoWhy Machines Learn: A clever primer makes sense of what makes AI possible
-
Science & Environment1 month agoPhysicists have worked out how to melt any material
-
News1 month ago
the pick of new debut fiction
-
Technology1 month agoMeta has a major opportunity to win the AI hardware race
-
News1 month agoOur millionaire neighbour blocks us from using public footpath & screams at us in street.. it’s like living in a WARZONE – WordupNews
-
Sport3 weeks agoBoxing: World champion Nick Ball set for Liverpool homecoming against Ronny Rios
-
MMA3 weeks agoDana White’s Contender Series 74 recap, analysis, winner grades
-
Technology3 weeks agoThis AI video generator can melt, crush, blow up, or turn anything into cake
-
Technology3 weeks agoMusk faces SEC questions over X takeover
-
News3 weeks agoFamily plans to honor hurricane victim using logs from fallen tree that killed him
-
Sport3 weeks agoWorld’s sexiest referee Claudia Romani shows off incredible figure in animal print bikini on South Beach
-
News3 weeks ago‘Blacks for Trump’ and Pennsylvania progressives play for undecided voters
-
Technology3 weeks agoThe best budget robot vacuums for 2024
-
MMA3 weeks agoPereira vs. Rountree preview show live stream
-
Sport3 weeks agoMan City ask for Premier League season to be DELAYED as Pep Guardiola escalates fixture pile-up row
-
News3 weeks agoGerman Car Company Declares Bankruptcy – 200 Employees Lose Their Jobs
-
Sport3 weeks agoCoco Gauff stages superb comeback to reach China Open final
-
Business3 weeks ago
Bank of England warns of ‘future stress’ from hedge fund bets against US Treasuries
-
Business3 weeks agoChancellor Rachel Reeves says she needs to raise £20bn. How might she do it?
-
Technology3 weeks agoTexas is suing TikTok for allegedly violating its new child privacy law
-
Sport3 weeks agoSturm Graz: How Austrians ended Red Bull’s title dominance
-
Money3 weeks agoWetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good
-
News3 weeks agoHeavy strikes shake Beirut as Israel expands Lebanon campaign
-
TV3 weeks agoLove Island star sparks feud rumours as one Islander is missing from glam girls’ night
-
MMA3 weeks agoAlex Pereira faces ‘trap game’ vs. Khalil Rountree
-
Technology3 weeks agoJ.B. Hunt and UP.Labs launch venture lab to build logistics startups
-
TV3 weeks agoPhillip Schofield accidentally sets his camp on FIRE after using emergency radio to Channel 5 crew
-
News3 weeks agoHeartbreaking end to search as body of influencer, 27, found after yacht party shipwreck on ‘Devil’s Throat’ coastline
-
Business3 weeks ago
Sterling slides after Bailey says BoE could be ‘a bit more aggressive’ on rates
-
Technology3 weeks agoMicrosoft just dropped Drasi, and it could change how we handle big data
-
Sport3 weeks agoChina Open: Carlos Alcaraz recovers to beat Jannik Sinner in dramatic final
-
MMA3 weeks agoUFC 307 preview show: Will Alex Pereira’s wild ride continue, or does Khalil Rountree shock the world?
-
Business3 weeks ago
Head of UK Competition Appeal Tribunal to step down after rebuke for serious misconduct
-
Technology3 weeks agoThe best shows on Max (formerly HBO Max) right now
-
Science & Environment1 month agoPhysicists are grappling with their own reproducibility crisis
-
Football3 weeks agoSimo Valakari: New St Johnstone boss says Scotland special in his heart
-
News3 weeks agoWoman who died of cancer ‘was misdiagnosed on phone call with GP’
-
News3 weeks agoHull KR 10-8 Warrington Wolves – Robins reach first Super League Grand Final
-
MMA3 weeks agoKetlen Vieira vs. Kayla Harrison pick, start time, odds: UFC 307
-
Science & Environment3 weeks agoMarkets watch for dangers of further escalation
-
Technology3 weeks agoGmail gets redesigned summary cards with more data & features
-
TV3 weeks agoMaayavi (මායාවී) | Episode 23 | 02nd October 2024 | Sirasa TV
-
Technology3 weeks agoPopular financial newsletter claims Roblox enables child sexual abuse
-
Technology3 weeks agoOpenAI secured more billions, but there’s still capital left for other startups
-
Health & fitness3 weeks agoNHS surgeon who couldn’t find his scalpel cut patient’s chest open with the penknife he used to slice up his lunch
-
Business3 weeks ago
The search for Japan’s ‘lost’ art
-
Business3 weeks agoStark difference in UK and Ireland’s budgets
-
Sport3 weeks agoAaron Ramsdale: Southampton goalkeeper left Arsenal for more game time
-
News3 weeks agoBalancing India and China Is the Challenge for Sri Lanka’s Dissanayake
-
Entertainment3 weeks ago“Golden owl” treasure hunt launched decades ago may finally have been solved
-
Entertainment3 weeks agoNew documentary explores actor Christopher Reeve’s life and legacy
-
Science & Environment1 month agoA tale of two mysteries: ghostly neutrinos and the proton decay puzzle
-
Business4 weeks ago
Eurosceptic Andrej Babiš eyes return to power in Czech Republic
-
Technology3 weeks agoUniversity examiners fail to spot ChatGPT answers in real-world test
-
Sport1 month agoJoshua vs Dubois: Chris Eubank Jr says ‘AJ’ could beat Tyson Fury and any other heavyweight in the world
-
News1 month ago
The Project Censored Newsletter – May 2024
-
Technology4 weeks agoArtificial flavours released by cooking aim to improve lab-grown meat
-
Technology3 weeks agoEpic Games CEO Tim Sweeney renews blast at ‘gatekeeper’ platform owners
-
Business3 weeks ago
Top shale boss says US ‘unusually vulnerable’ to Middle East oil shock
-
News3 weeks agoLiverpool secure win over Bologna on a night that shows this format might work
-
Technology3 weeks agoAmazon’s Ring just doubled the price of its alarm monitoring service for grandfathered customers
-
Football3 weeks agoWhy does Prince William support Aston Villa?
-
MMA3 weeks agoKayla Harrison gets involved in nasty war of words with Julianna Pena and Ketlen Vieira
You must be logged in to post a comment Login