Midstream of Consciousness 06/07/26

研报英文原文证据摘录

Midstream of Consciousness 06/07/26

focus on the name in our conversations. The stock is viewed as potentially

cheap, but investors seem to lack conviction that KMI will have significant new growth project FIDs this year

despite the $10B shadow backlog.

KNTK: We’re surprised investor sentiment hasn’t been more positive. KNTK had a good Q1, the 2026 outlook is

de-risked, and in theory 2027 should show a strong growth inflection on faster Permian growth and re-

contracting benefits. However, investors seem to feel a bit burned from past disappointments and lack

conviction that the growth inflection will materialize. We’ve also heard feedback that the stock isn’t cheap

after strong YTD performance.

LNG: There’s still some hesitancy to buy in even if viewed as cheap, particularly with the seemingly never-

ending deal / no deal headlines on Iran. As discussed earlier in this report, investors were receptive to our top

pick call, but still had some reservations on the catalyst path and long-term questions / concerns.

MPLX: Some investors think the stock is attractive on the premise they will ultimately execute on the

distribution growth plan, which would increase the yield to 9.5% in late 2027 and likely put upward pressure

on the stock. But the majority still seem bearish. Reasons cited include 1) a loss of confidence in the affiliate

structure given recent earnings misses and shifting messaging on 2026; 2) a need for acquisitions to meet

financial targets; and 3) its position as the only liquids-focused midstream stock that doesn’t really benefit from

the impact of higher commodities post the war with Iran.

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