Kinder Morgan (KMI) and Phillips 66 (PSX) announced on Oct. 20 that they started a binding open season for the Western Gateway Pipeline. This marks the first partnership of its kind between these two big players in energy pipelines for moving refined products. The project is a major build-out that will link refined fuel supplies from Texas straight to important markets in Arizona and California. It will also connect to Las Vegas, Nevada, using Kinder Morgan's existing CALNEV Pipeline.
This Western Gateway Pipeline plan arrives right when both companies are already strong sources of steady income for investors. Kinder Morgan has a market value of about $61.1 billion and pays a dividend yield of 4.22%. Its most recent payment was $0.292 on July 31. Phillips 66 carries a market value of around $51.9 billion and offers a dividend yield of 3.65%. Analysts keep backing both stocks, and the whole energy sector is seeing gains from solid investments in pipelines and related assets.
