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Kinder Morgan Inc (KMI)
NYSE:KMI
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Kinder Morgan
(NYSE:KMI)
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Rating:78Outperform
Price Target:
$33.00
▲(9.78% Upside)
The score is driven primarily by strong cash flow strength and solid profitability, reinforced by a positive earnings call highlighting backlog expansion, improving leverage/credit profile, and supportive natural gas demand guidance. Technicals add support with an upward trend and positive MACD, though near-term overbought signals temper the rating. Valuation is helped by the ~4.1% dividend yield but constrained by a ~20x P/E.
Positive Factors
Strong Cash Generation
Kinder Morgan's robust cash generation capabilities enhance its ability to invest in growth opportunities and maintain financial stability, supporting long-term business sustainability.
Natural Gas Segment Outperformance
The natural gas segment's strong performance underscores Kinder Morgan's strategic focus and competitive advantage in a growing market, driving future revenue growth.
Robust Project Pipeline
A strong project pipeline positions Kinder Morgan for sustained growth, leveraging its infrastructure to capitalize on increasing energy demands and regulatory support.
Negative Factors
CO2 Segment Decline
The decline in the CO2 segment highlights challenges in diversifying revenue streams, potentially impacting overall growth and profitability if not addressed.
Rising Debt Levels
Reliance on debt financing can constrain financial flexibility and increase risk, necessitating careful management to maintain balance sheet health.
Weak RNG Volumes and RIN Prices
Weak RNG volumes and RIN prices pose challenges to earnings stability, highlighting potential vulnerabilities in renewable energy segments.
Kinder Morgan (KMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.88B
Dividend Yield4.27%
Average Volume (3M)12.80M
Price to Earnings (P/E)22.1
Beta (1Y)0.51
Revenue Growth8.54%
EPS Growth7.22%
CountryUS
Employees10,933
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.39
Shares Outstanding2,224,760,500
10 Day Avg. Volume18,291,145
30 Day Avg. Volume12,803,250
Financial Highlights & Ratios
PEG Ratio2.24
Price to Book (P/B)1.99
Price to Sales (P/S)4.04
P/FCF Ratio20.24
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue6.05
Enterprise Value/Gross Profit17.19
Enterprise Value/Ebitda12.71
Forecast
1Y Price Target
$31.56Price Target Upside4.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.37
Revenue Forecast (FY)$17.68B
Kinder Morgan Business Overview & Revenue Model
Company DescriptionKinder Morgan, Inc. operates as an energy infrastructure company in North America. The company operates through four segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and underground storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas liquefaction and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. It owns and operates approximately 83,000 miles of pipelines and 143 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1936 and is headquartered in Houston, Texas.
How the Company Makes MoneyKinder Morgan generates revenue primarily through its fee-based business model, which involves charging customers for the transportation and storage of energy products. The company's key revenue streams come from long-term contracts for the transportation of natural gas, crude oil, and refined products through its extensive pipeline network. Additionally, Kinder Morgan earns income from its terminals, where it handles the storage and transloading of various liquids and gases. The company's stable cash flow is bolstered by its strategic partnerships and joint ventures with major energy producers and utility companies, as well as its focus on maintaining a strong balance sheet and investing in infrastructure projects that enhance its operational capacity.
Kinder Morgan Key Performance Indicators (KPIs)
Any
Average Net Oil Production
Measures the average amount of oil produced, reflecting operational efficiency and the company's capacity to meet market demand.
Measures the average amount of oil produced, reflecting operational efficiency and the company's capacity to meet market demand.
Data provided by:
The Fly
The FlyKinder Morgan Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call communicated a broadly positive performance driven by strong natural gas fundamentals, record 2025 financial results, backlog expansion to $10 billion, successful project permitting and construction starts, and improved credit metrics. Operationally, natural gas transport and gathering volumes showed meaningful year-over-year growth and specific projects (Trident, MSX, South System 4) are on budget and on/ ahead of schedule. Management emphasized a disciplined capital allocation approach and the ability to fund ~$3 billion per year of CapEx from cash flow. Notable headwinds include modest declines in certain liquids and CO2 volumes, project-level uncertainties tied to customer commitments and open seasons (e.g., Western Gateway, SSE5), and regional risks such as Bakken drilling slowdowns. Overall, the highlights (strong earnings, backlog and balance sheet improvements, high utilization and long-term demand outlook) materially outweigh the lowlights.Q4-2025 Updates
Positive Updates
Record Financial Results and Strong Earnings Growth
Q4 net income attributable to KMI of $996 million and GAAP EPS of $0.45, 49% and 50% above Q4 2024 respectively. Excluding certain items, adjusted net income and adjusted EPS each grew 22% year-over-year in Q4. For full year 2025, adjusted EBITDA grew 6% and adjusted EPS grew 13% versus 2024, both beating budget (budgeted +4% EBITDA and +10% adjusted EPS). 2025 results were described as all-time record levels for Kinder Morgan.
Natural Gas Demand Tailwinds and Long-Term Outlook
Company estimates U.S. LNG feed gas demand averaging 19.8 Bcf/d in 2026 (up 19% from 16.6 Bcf/d in 2025) and projects demand exceeding 34 Bcf/d by 2030. Management highlighted sustained secular growth drivers (LNG expansions, power generation) and large incremental demand opportunities over the decade.
Significant Backlog Growth and Project Pipeline
Project backlog reached $10.0 billion (backlog multiple remains below 6x). During 2025 the backlog grew from $8.1 billion to $10.0 billion despite placing projects into service (company added $3.7 billion to backlog and placed $1.8 billion into service during the year). The company also noted >$10 billion of additional project opportunities beyond the backlog.
Operational Volume Strength in Natural Gas
Natural gas transport volumes increased 9% in the quarter versus Q4 2024 and were up 5% for the full year. Natural gas gathering volumes were up 19% in the quarter (sequentially +9%) and +4% for the full year versus 2024. Haynesville gathering set a daily throughput record of 1.97 Bcf/day on December 24.
Project Execution and Permitting Progress
Construction started on Trident; MSX and South System 4 received FERC scheduling orders with FERC anticipating issuance of final certificates by July 31 (ahead of original expectation). Management stated all three large projects are on budget and on or ahead of schedule.
Balance Sheet Strength and Credit Upgrades
Net debt to adjusted EBITDA improved to 3.8x (from 3.9x last quarter and 4.1x earlier). Net debt decreased $9 million since end of 2024 despite nearly $3 billion of total investments and an acquisition. S&P upgraded KMI (noted as BBB+/positive), Fitch upgraded to BBB+ earlier, and Moody's has a positive outlook — signaling improved credit profile.
Strong Cash Flow Generation and Capital Discipline
Generated cash flow from operations of $5.92 billion in 2025. Invested $3.15 billion in CapEx (growth and sustaining), paid $2.6 billion in dividends, and completed the Outrigger acquisition (~$650 million) while reducing net debt modestly. Management reiterated ability to fund ~$3 billion/year CapEx from cash flow.
Dividend Increase and Shareholder Returns
Declared quarterly dividend of $0.2925 per share (annualized $1.17), a 2% increase year-over-year, demonstrating modest dividend growth alongside reinvestment in backlog projects.
Terminals and Tankage Utilization
Liquids lease capacity at 93% and utilization of tanks available for use at 99% at key hubs (Houston Ship Channel and Carteret, NJ). Jones Act tanker fleet 100% leased through 2026, 97% through 2027 and 80% through 2028, with opportunistic charters at higher market rates and average firm contract commitments >3 years.
Opportunistic Asset Monetization
Completed opportunistic sale of a nonoperated minority interest (EagleHawk) at an 8.5x multiple, demonstrating active capital recycling where reinvestment returns would be below cost of capital.
Negative Updates
Products Pipeline Volume Weakness and HH Outage Impact
Refined products volumes were down 2% in Q4 versus Q4 2024 (full year roughly flat). Crude and condensate volumes were down 8% in Q4 compared to Q4 2024, largely driven by taking HH out of service for the NGL conversion project; excluding HH volumes, crude and condensate volumes were up 6% in the quarter.
CO2 and NGL Volume Softness
CO2 segment saw slight declines in the quarter: oil production volumes -1%, NGL volumes -2%, and CO2 volumes -2% versus Q4 2024. Full-year oil volumes were ~2% below 2024, though management noted a stronger finish to the year.
Bakken Basin Uncertainty and Customer Activity
Headlines that a major producer (Continental) plans to pause drilling in the Bakken raised questions. Management stated Bakken-related EBITDA is ~3% of overall EBITDA and does not expect material impact, but basin weakness introduces some regional risk and may affect future phase timing for certain projects (e.g., HH conversion subsequent phases).
Residual Execution and Market Uncertainties
Some projects remain competitive and contingent on final subscription and open seasons (e.g., Western Gateway, SSE5/Southeast opportunities). Management noted scope changes (compression vs looping) depend on customer commitment and that competition could affect timing and sizing.
Inability to Quantify Some Near-Term Impacts
For certain initiatives (Western Gateway JV, displacement impacts to existing SFPP EBITDA from project changes), management said it was too early to quantify net EBITDA impacts pending open seasons, partner negotiations and final cost assessment, leaving near-term forecasting uncertainty.
Modest Dividend Increase Relative to Strong Earnings
Dividend was increased by only 2% despite double-digit adjusted EPS growth and record results, which some investors may view as conservative relative to earnings momentum.
Company Guidance
Management guided to continued strong 2026 performance, reiterating expected feed gas demand of 19.8 Bcf/d in 2026 (up 19% from 16.6 Bcf/d in 2025) and forecasting >34 Bcf/d by 2030, backed by a $10.0 billion project backlog (up ~$650 million, with ~$900 million added and $265 million placed in service) and more than $10 billion of additional project opportunities; they expect to sustain roughly $3 billion a year of CapEx (up from prior $2.5 billion guidance), believe backlog multiple remains below 6x to drive growth, and noted key projects (Trident, MSX, South System 4) are on budget and on or ahead of schedule with FERC certificates anticipated by July 31; financial posture guidance included maintaining net debt/adjusted EBITDA near the mid-point of a 3.5–4.5x range (3.8x this quarter, down from 3.9x), funding growth from cash flow (operating cash flow $5.92 billion in 2025), targeting continued dividend of $0.2925 per quarter ($1.17 annualized, +2% Y/Y), and expecting ongoing double-digit upside potential after 2025’s record results (Q4 net income $996 million and EPS $0.45, +49%/+50% Y/Y; adjusted EBITDA +10% in the quarter, full-year adjusted EBITDA +6% and adjusted EPS +13% versus budget).Kinder Morgan Financial Statement Overview
Summary
Solid overall fundamentals: steady TTM revenue growth (2.95%), healthy profitability (35.18% gross margin; 16.62% net margin), and very strong cash performance with free cash flow growth of 106.5% and strong cash conversion (operating cash flow to net income 1.45). Offsetting factors include mild pressure on EBIT/EBITDA margins and moderate leverage (debt-to-equity 1.06).Income Statement
Kinder Morgan's income statement shows a stable revenue growth rate of 2.95% in the TTM period, indicating a positive trajectory after previous fluctuations. The company maintains healthy margins with a gross profit margin of 35.18% and a net profit margin of 16.62%. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 1.06, which is typical for the industry but indicates a reliance on debt financing. The return on equity is stable at 8.89%, showing effective use of equity capital. The equity ratio stands at 42.50%, suggesting a balanced capital structure, though there is room for improvement in reducing leverage.70
Positive
Cash Flow
Cash flow analysis reveals a strong free cash flow growth rate of 106.5% in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 1.45 indicates robust cash flow relative to earnings, and the free cash flow to net income ratio of 0.49 suggests efficient conversion of profits into cash.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.41B | 15.07B | 15.16B | 19.55B | 17.53B | 11.48B |
| Gross Profit | 5.77B | 5.53B | 5.13B | 5.50B | 6.37B | 4.28B |
| EBITDA | 7.81B | 7.63B | 7.25B | 7.03B | 5.85B | 4.41B |
| Net Income | 2.73B | 2.61B | 2.39B | 2.55B | 1.78B | 119.00M |
Balance Sheet | ||||||
| Total Assets | 72.32B | 71.41B | 71.02B | 70.08B | 70.42B | 71.97B |
| Cash, Cash Equivalents and Short-Term Investments | 71.00M | 88.00M | 83.00M | 745.00M | 1.14B | 1.18B |
| Total Debt | 32.58B | 31.67B | 31.89B | 31.57B | 33.21B | 34.58B |
| Total Liabilities | 40.28B | 39.54B | 39.29B | 37.96B | 38.49B | 39.41B |
| Stockholders Equity | 30.74B | 30.53B | 30.31B | 30.74B | 30.82B | 31.44B |
Cash Flow | ||||||
| Free Cash Flow | 2.75B | 3.01B | 4.15B | 3.35B | 4.43B | 2.84B |
| Operating Cash Flow | 5.74B | 5.63B | 6.49B | 4.97B | 5.71B | 4.55B |
| Investing Cash Flow | -3.47B | -2.63B | -4.17B | -2.17B | -2.31B | -911.00M |
| Financing Cash Flow | -2.26B | -2.89B | -3.01B | -3.15B | -3.46B | -2.64B |
Kinder Morgan Technical Analysis
Positive
30.06
Price Trends
27.48
Positive
27.09
Positive
26.88
Positive
Market Momentum
0.84
Negative
67.19
Neutral
70.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMI, the sentiment is Positive. The current price of 30.06 is above the 20-day moving average (MA) of 28.47, above the 50-day MA of 27.48, and above the 200-day MA of 26.88, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 67.19 is Neutral, neither overbought nor oversold. The STOCH value of 70.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMI.
Kinder Morgan Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $50.55B | 14.40 | 17.14% | 5.61% | 58.76% | 13.74% | |
80 Outperform | $56.54B | 11.47 | 34.70% | 7.31% | 5.19% | 11.09% | |
78 Outperform | $66.88B | 22.06 | 9.87% | 4.27% | 8.54% | 7.22% | |
75 Outperform | $76.15B | 13.04 | ― | 6.72% | -6.46% | -0.87% | |
73 Outperform | $63.07B | 14.74 | 13.09% | 8.04% | -4.67% | -8.06% | |
71 Outperform | $81.16B | 35.44 | 19.00% | 3.35% | 11.48% | -17.82% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
KMI
Kinder Morgan
30.06
4.39
17.08%
ET
Energy Transfer
18.37
-0.55
-2.91%
EPD
Enterprise Products Partners
35.20
4.51
14.70%
OKE
Oneok
80.34
-10.42
-11.48%
WMB
Williams Co
66.46
12.32
22.76%
MPLX
MPLX
55.59
5.12
10.14%
Kinder Morgan Corporate Events
Business Operations and Strategy
Kinder Morgan to Participate in Wells Fargo Symposium
Neutral
Dec 5, 2025
On December 4, 2025, Kinder Morgan, Inc. announced its participation in the Wells Fargo Energy & Power Symposium scheduled for December 9, 2025. The event will feature discussions on the company’s business and affairs, with presentation materials available on their website. The live and archived webcast of the presentation will be accessible online, providing stakeholders with insights into the company’s operations and strategic direction.
The most recent analyst rating on (KMI) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.
Business Operations and Strategy
Kinder Morgan to Present at BofA Energy Conference
Neutral
Nov 7, 2025
On November 6, 2025, Kinder Morgan announced its participation in the BofA Global Energy Conference scheduled for November 11, 2025, where company representatives will discuss its business and affairs. The materials for the event will be available on their website on November 7, 2025, providing insights into the company’s strategic direction and potential impacts on stakeholders.
The most recent analyst rating on (KMI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.