Kinder Morgan (KMI) AI Stock Analysis

• Market Cap: $72.73B
• Dividend Yield: 4.27%
• Average Volume (3M): 14.17M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.51
• Revenue Growth: 8.54%
• EPS Growth: 7.22%
• Country: US
• Employees: 10,933
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.39
• Shares Outstanding: 2,224,806,400
• 10 Day Avg. Volume: 11,922,809
• 30 Day Avg. Volume: 14,168,080
• PEG Ratio: 1.17
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 3.61
• P/FCF Ratio: 18.99
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 6.21
• Enterprise Value/Gross Profit: 14.21
• Enterprise Value/Ebitda: 14.06
• 1Y Price Target: $32.14
• Price Target Upside: -1.92% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.37
• Revenue Forecast (FY): $17.78B

• Rating: 70 Outperform
• Price Target: $35.00 ▲(6.81% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by solid financial performance (strong profitability and positive free cash flow) and a constructive earnings outlook (record results, larger backlog, improving leverage/credit). Technicals are supportive but appear overextended, and valuation is only moderate given the P/E despite a solid dividend yield.

Positive Factors

Large, growing project backlog

A $10B backlog plus another >$10B of opportunities provides multi-year revenue visibility for a fee-based business. This depth supports steady utilization, staged asset in-service dates, and predictable contract cash flows that underpin durable earnings and capital planning over the next several years.

Strong cash generation and capital discipline

Consistent operating cash flow near $6B funds sustainable ~$3B annual CapEx, dividends, acquisitions and modest deleveraging without equity raises. This internal funding ability supports execution of growth projects while maintaining distributions, improving financial flexibility over a multi-year horizon.

Secular natural gas demand tailwinds

An expected multi-year increase in LNG feed gas and sustained power generation demand supports long-term utilization of pipelines and gathering systems. Structural demand growth reduces commodity volume downside and enhances the economics of expansion projects, strengthening fee-based cash flow durability.

Negative Factors

Elevated leverage

Meaningful debt levels and net leverage near mid-to-high target range constrain financial flexibility. Higher leverage increases interest expense sensitivity and limits capacity for aggressive buybacks or large opportunistic investments if volumes or cash flow weaken, making the company more rate and cyclical risk exposed.

Uneven revenue momentum and FCF conversion

Choppy top-line trends and subpar FCF-to-net-income conversion indicate earnings and cash are sensitive to timing of project spend and asset sales. Variable conversion reduces the reliability of retained cash for deleveraging or accelerated shareholder returns, raising medium-term execution risk.

Project execution and customer commitment risk

A subset of expansion projects depends on final shipper commitments and open season outcomes, which can delay or alter scope. Competition, regional producer slowdowns and unresolved commercial terms could reduce backlog monetization or push returns out, weighing on growth realization over the next 2–4 years.

Kinder Morgan Business Overview & Revenue Model

Company Description

Kinder 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 Money

Kinder 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 Financial Statement Overview

Summary

Strong and improving profitability (2025 revenue up 3.3% YoY; net margin ~18%; net income $3.06B) and consistently positive free cash flow support the core profile. Offsetting factors are uneven revenue momentum (declines in 2023 and flat 2024), choppy FCF growth/conversion (FCF ~0.49x of net income in 2025), and a still-levered balance sheet (debt roughly equal to equity).

Income Statement

Profitability is strong and improving: 2025 revenue rose to $16.95B (+3.3% YoY) with solid margins (gross margin ~43.7%, net margin ~18.0%) and net income up to $3.06B. Over the last several years, earnings have recovered materially from 2020’s unusually weak profit level, indicating better operating stability. The main watch-out is uneven top-line momentum (revenue declines in 2023 and essentially flat 2024), which suggests growth is not consistently durable despite healthy profitability.

Balance Sheet

Leverage remains the key constraint: total debt is roughly flat at $31.8B in 2025 and debt is about equal to equity (debt-to-equity ~1.02x), which is manageable but still relatively heavy. Equity has been stable-to-modestly higher over time, and returns on equity improved to ~9.8% in 2025 from mid-single digits earlier, signaling better earnings power. However, the balance sheet remains meaningfully geared, limiting flexibility if industry conditions weaken or rates stay higher for longer.

Cash Flow

Cash generation is solid with improving operating cash flow ($5.92B in 2025 vs. $5.64B in 2024) and positive free cash flow growth in 2025 (+5.0%). Free cash flow is consistently positive, supporting dividends and deleveraging capacity. The main weakness is that free cash flow covers only about half of net income in 2025 (~0.49x), and free cash flow growth has been choppy (notably down in 2022 and 2024), pointing to variability in conversion and/or spending needs year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.95B	15.07B	15.16B	19.55B	17.53B
Gross Profit	7.40B	5.53B	5.13B	5.50B	6.37B
EBITDA	7.48B	7.63B	7.25B	7.03B	5.85B
Net Income	3.06B	2.61B	2.39B	2.55B	1.78B
Balance Sheet
Total Assets	74.55B	71.41B	71.02B	70.08B	72.37B
Cash, Cash Equivalents and Short-Term Investments	109.00M	88.00M	83.00M	745.00M	1.14B
Total Debt	32.39B	32.34B	32.63B	32.31B	33.91B
Total Liabilities	42.10B	39.54B	39.29B	37.96B	40.45B
Stockholders Equity	31.16B	30.53B	30.31B	30.74B	30.82B
Cash Flow
Free Cash Flow	3.22B	3.01B	4.15B	3.35B	4.43B
Operating Cash Flow	6.25B	5.63B	6.49B	4.97B	5.71B
Investing Cash Flow	-3.51B	-2.63B	-4.17B	-2.17B	-2.31B
Financing Cash Flow	-2.84B	-2.89B	-3.01B	-3.15B	-3.46B

Kinder Morgan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 32.77 is above the 20-day moving average (MA) of 31.30, above the 50-day MA of 28.88, and above the 200-day MA of 27.30, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 79.57 is Negative, neither overbought nor oversold. The STOCH value of 74.69 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	80 Outperform	$59.89B	12.22	34.70%	7.31%	5.19%	11.09%
OKE	75 Outperform	$52.16B	15.29	17.17%	5.61%	58.76%	13.74%
KMI	70 Outperform	$72.73B	23.90	9.85%	4.27%	8.54%	7.22%
EPD	70 Outperform	$78.51B	13.67	―	6.72%	-6.46%	-0.87%
WMB	70 Outperform	$89.76B	34.43	20.74%	3.35%	11.48%	-17.82%
ET	67 Neutral	$64.68B	15.54	12.75%	8.04%	-4.67%	-8.06%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Kinder Morgan Corporate Events

Kinder Morgan Schedules 2026 Annual Business Update Release

On January 28, 2026, Kinder Morgan, Inc. announced that its 2026 annual business update presentation would be made available on its investor relations website by 6:30 a.m. Central Time on Thursday, January 29, 2026, providing shareholders and analysts with detailed information on the company’s business and financial outlook. The scheduled posting underscores Kinder Morgan’s ongoing effort to maintain transparency with investors and other stakeholders by centralizing key operational and strategic disclosures through its online investor platform.

The most recent analyst rating on (KMI) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.

Kinder Morgan to Participate in Wells Fargo Symposium

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.