Kinder Morgan’s Mixed Segment Performance and Stable Financial Metrics Support Hold Rating

Robert Kad, an analyst from Morgan Stanley, maintained the Hold rating on Kinder Morgan. The associated price target remains the same with $34.00.

Robert Kad’s rating is based on several factors influencing Kinder Morgan’s financial performance. The company’s Natural Gas Pipelines segment showed positive growth, with increased contributions from the Texas Intrastate system and Tennessee Gas Pipeline, reflecting a 10.1% year-over-year increase. However, the CO2 business segment experienced a decline in earnings due to lower CO2 and D3 RIN prices, despite higher volumes of renewable natural gas sales.
Additionally, while the Terminals segment exceeded expectations with a 6.8% year-over-year increase, the Products Pipelines segment underperformed, showing a 3.0% decline. The company’s guidance remains unchanged, with expectations to exceed budget due to the Outrigger Energy II acquisition. Despite these mixed results, the company’s adjusted EBITDA and debt metrics remain stable, supporting the Hold rating as the company navigates both opportunities and challenges in the current market environment.

In another report released on July 2, RBC Capital also maintained a Hold rating on the stock with a $28.00 price target.