Extreme winter weather is on the way to much of the United States and that could trigger significant opportunities for profit.
When temperatures plunge and storms stretch across large parts of the country, demand spikes where it always does: heating, power reliability, fuel delivery, and emergency infrastructure. And when systems get stressed, the companies that keep things running suddenly move from background players to center stage.
When cold snaps turn severe we see huge surges in energy usage…and utilities scramble to maintain reliability. Fuel logistics tighten. Backup systems go from optional to essential.
Markets tend to react quickly to these situations, especially when forecasts shift from “possible” to “probable.” Stocks tied to power generation, natural gas transport, grid reliability, and emergency equipment often see interest pick up well before the worst of the weather hits.
In today’s issue, we’re highlighting 2 stocks positioned to benefit when winter conditions intensify. These are businesses tied directly to keeping homes warm, lights on, and systems functioning when winter pushes infrastructure to its limits.
Kinder Morgan, Inc. (NYSE: KMI)
Kinder Morgan, Inc. (NYSE: KMI) is a leading energy infrastructure company that operates one of North America’s largest networks of pipelines and terminals.
Kinder Morgan’s Natural Gas Pipelines segment, which is the biggest piece of the business, really comes into focus when winter weather turns severe. During a prolonged cold snap, natural gas isn’t just another energy source. It’s what keeps homes heated, power plants running, and the grid stable across much of the country.
When extreme cold sends heating demand surging, the volume moving through Kinder Morgan’s network picks up as utilities and power producers rush to lock in reliable supply. Even a short-lived cold stretch can stress regional systems, pushing more gas through the long-haul pipelines and storage hubs where Kinder Morgan operates at scale.
The advantage is in how that demand hits the bottom line. Kinder Morgan earns most of its revenue from long-term, fee-based contracts…not from swings in commodity prices. So when winter usage spikes, the company sees steadier cash flow without taking on the risk of betting on where gas prices are headed.
As forecasts start pointing toward more intense winter storms like the one predicted for this weekend, the market tends to zero in on the infrastructure that actually keeps heat flowing and lights on. That’s when pipeline reliability, storage access, and delivery capacity move to the front of investors’ minds…and that’s exactly where Kinder Morgan sits.
According to the 16 analysts covering the company, the average twelve-month price target for shares of KMI is $31.93, which represents a forecasted potential upside of 7.61% from the current share price.
Duke Energy Corporation (NYSE: DUK)
Duke Energy Corporation (NYSE: DUK), through its subsidiaries, operates as an energy company in the United States. It operates through two segments: Electric Utilities and Infrastructure (EU&I); and Gas Utilities and Infrastructure (GU&I).
Serving more than 8 million customers across the Southeast and Midwest, Duke Energy operates in regions where sudden cold snaps can strain both electric and natural gas systems. When temperatures drop quickly, demand doesn’t ease gradually…it jumps, and utilities with reliable capacity are the ones that get leaned on.
That’s where Duke Energy tends to shine. Its regulated model allows higher fuel costs, storm-related expenses, and grid investments to be recovered through rates over time. During extreme weather events, that structure helps protect margins while the focus stays on keeping power flowing and service interruptions to a minimum.
There’s also a longer-term angle at work. Each severe winter event reinforces the need for grid hardening, redundancy, and infrastructure upgrades, and these are all areas where Duke continues to invest. As forecasts point toward more frequent weather extremes, utilities with strong balance sheets and regulatory support often come out stronger, not weaker, once the storm passes.
The average price target for shares of DUK for the 18 analysts covering the stock is currently $135.13, which represents a forecasted upside of 14.81% from the current share price.
Leave a Reply