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Kinder Morgan
(NYSE:KMI)
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Rating:73Outperform
Price Target:
$36.00
▲(9.56% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid financial quality (strong margins and operating cash generation) and a notably positive earnings update with raised 2026 guidance and continued dividend growth. Offsetting factors are free-cash-flow volatility and meaningful leverage, while technicals are neutral-to-soft and valuation is only moderate due to a not-cheap P/E despite an attractive yield.
Positive Factors
High Profitability & Margins
Kinder Morgan's trailing margins (gross ~54.9%, operating ~31.1%, net ~19.3%) reflect durable fee-based contracts, scale in pipelines/terminals, and cost discipline. Sustained high margins support long-term cash generation, dividend funding, and reinvestment capacity across commodity cycles.
Negative Factors
Meaningful Leverage
Leverage near a 1.0 debt-to-equity ratio and net debt/adjusted EBITDA around mid-3x limits balance-sheet optionality. Persistent leverage heightens sensitivity to rate moves and refinancing cycles, constraining aggressive buybacks or opportunistic M&A without increased leverage or asset sales.
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Positive Factors
Negative Factors
High Profitability & Margins
Kinder Morgan's trailing margins (gross ~54.9%, operating ~31.1%, net ~19.3%) reflect durable fee-based contracts, scale in pipelines/terminals, and cost discipline. Sustained high margins support long-term cash generation, dividend funding, and reinvestment capacity across commodity cycles.
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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 (KMI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$71.66B
Dividend Yield3.67%
Average Volume (3M)9.88M
Price to Earnings (P/E)20.6
Beta (1Y)0.34
Revenue Growth12.44%
EPS Growth27.19%
CountryUS
Employees11,028
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.56
Shares Outstanding2,226,802,000
10 Day Avg. Volume9,592,577
30 Day Avg. Volume9,884,613
Financial Highlights & Ratios
PEG Ratio1.17
Price to Book (P/B)1.96
Price to Sales (P/S)3.61
P/FCF Ratio18.99
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$36.20Price Target Upside10.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.51
Revenue Forecast (FY)$18.24B
Kinder Morgan Business Overview & Revenue Model
Company Description
Kinder Morgan, Inc. operates as a leading energy infrastructure company across North America. Its extensive operations are categorized into four primary business segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The Natural ...
How the Company Makes Money
Kinder Morgan primarily makes money by charging fees under contracts for the transportation, storage, and handling of energy commodities across its pipeline and terminal networks. Its core revenue streams generally include: (1) Natural gas pipelin...
Kinder Morgan Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported a record quarter with strong YoY growth in adjusted EBITDA and adjusted EPS, raised full-year guidance, maintained a healthy dividend, and highlighted a large pipeline of growth opportunities (shadow backlog >$10B) with major expansion projects progressing on time and on budget. Key concerns were manageable: a modest reported backlog decline (largely due to projects placed in service), localized volume softness in products pipelines (partly related to Double H conversion), partner/contract timing for some large projects (e.g., Western Gateway) and typical commodity and supply-chain uncertainties that could affect near-term visibility. Overall, the positives materially outweigh the listed challenges.Positive Updates
Record Quarterly Financial Performance
Q2 2026 adjusted EBITDA grew 12% year-over-year and adjusted EPS increased 32% year-over-year. Net income attributable to KMI was $867 million (up 21% YoY) and GAAP EPS was $0.39 (up 22% YoY). Year-to-date EBITDA is up 15% and adjusted EPS is up 35% versus 2025. Management also noted EPS was >24% above internal budget and adjusted EBITDA was >9% above budget for the quarter.
Negative Updates
Backlog Decline This Quarter
Reported backlog decreased from approximately $10.1 billion to $9.6 billion during the quarter due to placing >$650 million of projects into service (partially offset by ~$200 million of new project additions). Although nearly $400M of projects were board-contingently approved, timing and contract execution remain required to add them back to backlog.
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Q2-2026 Updates
Positive
Negative
Record Quarterly Financial Performance
Q2 2026 adjusted EBITDA grew 12% year-over-year and adjusted EPS increased 32% year-over-year. Net income attributable to KMI was $867 million (up 21% YoY) and GAAP EPS was $0.39 (up 22% YoY). Year-to-date EBITDA is up 15% and adjusted EPS is up 35% versus 2025. Management also noted EPS was >24% above internal budget and adjusted EBITDA was >9% above budget for the quarter.
Read all positive updates
Company Guidance
Kinder Morgan raised 2026 guidance, now expecting full-year adjusted EBITDA to be at least 5% above its 2026 budget and adjusted EPS at least 12% above the original budget (David said that represents more than $430 million of incremental EBITDA). Q2 results driving the upgrade included adjusted EBITDA up 12% year‑over‑year and adjusted EPS up 32% YoY, net income attributable to KMI of $867 million and EPS of $0.39, and the company declared a quarterly dividend of $0.2975 ($1.19 annualized, +2% vs. 2025). The balance sheet remains strong with net debt/adjusted EBITDA at 3.6x at quarter end and expected to finish the year at 3.6x (budgeted 3.8x; midpoint target ~4.0x; management notes ~$850 million of capacity per 0.1x, or ~$3.4 billion to reach 4.0x). Growth-capex and backlog metrics: sanctioned backlog moved from about $10.1 billion to $9.6 billion after placing >$650 million of projects into service and adding ≈$200 million, the Board contingently approved nearly $400 million of projects pending contracts, the opportunity set exceeds $10 billion, the company projects >$3 billion/year of expansion CapEx based on current backlog (can fund largely with internal cash flow) and expects to add significant projects in H2—likely more than offsetting the ~ $1 billion of projects expected to be placed into service.Kinder Morgan Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.96B | 16.95B | 15.07B | 15.16B | 19.55B | 17.53B |
| Gross Profit | 9.86B | 7.40B | 5.53B | 5.13B | 5.50B | 6.37B |
| EBITDA | 8.06B | 7.48B | 7.63B | 7.25B | 7.03B | 5.85B |
| Net Income | 3.47B | 3.06B | 2.61B | 2.39B | 2.55B | 1.78B |
Balance Sheet | ||||||
| Total Assets | 74.06B | 74.55B | 71.41B | 71.02B | 70.08B | 72.37B |
| Cash, Cash Equivalents and Short-Term Investments | 89.00M | 109.00M | 88.00M | 83.00M | 745.00M | 1.14B |
| Total Debt | 32.25B | 32.39B | 32.34B | 32.63B | 32.31B | 33.91B |
| Total Liabilities | 41.18B | 42.10B | 39.54B | 39.29B | 37.96B | 40.45B |
| Stockholders Equity | 31.63B | 31.16B | 30.53B | 30.31B | 30.74B | 30.82B |
Cash Flow | ||||||
| Free Cash Flow | 3.87B | 3.22B | 3.01B | 4.15B | 3.35B | 4.43B |
| Operating Cash Flow | 6.62B | 6.25B | 5.63B | 6.49B | 4.97B | 5.71B |
| Investing Cash Flow | -3.56B | -3.51B | -2.63B | -4.17B | -2.17B | -2.31B |
| Financing Cash Flow | -3.14B | -2.84B | -2.89B | -3.01B | -3.15B | -3.46B |
Kinder Morgan Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $59.31B | 12.62 | 33.27% | 7.14% | 3.18% | 6.43% | |
76 Outperform | $82.32B | 13.21 | 20.04% | 5.65% | 7.17% | ― | |
73 Outperform | $71.66B | 20.63 | 11.11% | 3.58% | 12.44% | 27.19% | |
71 Outperform | $70.06B | 15.19 | 13.97% | 6.56% | 12.46% | -10.48% | |
70 Outperform | $57.22B | 16.16 | 15.92% | 4.51% | 41.04% | 9.18% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $87.49B | 31.24 | 24.23% | 2.77% | 9.99% | 22.02% |
* Energy Sector Average
KMI
Kinder Morgan
31.38
4.42
16.40%
ET
Energy Transfer
20.33
3.87
23.53%
EPD
Enterprise Products Partners
38.12
8.86
30.30%
OKE
Oneok
88.24
16.44
22.89%
WMB
Williams Co
70.43
13.25
23.16%
MPLX
MPLX
58.91
11.89
25.30%
Kinder Morgan Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Kinder Morgan Issues Long-Dated Senior Notes for Funding
Positive
Aug 3, 2026
On July 28, 2026, Kinder Morgan entered into an underwriting agreement to issue $1.75 billion in senior notes, consisting of $1.15 billion of 5.550% notes due 2036 and $600 million of 6.150% notes due 2056, under an existing shelf registration. Th...
Business Operations and StrategyPrivate Placements and Financing
Kinder Morgan Expands Revolving Credit Facility and Liquidity
Positive
May 28, 2026
On May 21, 2026, Kinder Morgan, Inc. entered into an Amended and Restated Revolving Credit Agreement with Barclays Bank PLC and a syndicate of lenders, replacing its prior $3.5 billion revolving credit facility dated August 20, 2021. The new arran...
Executive/Board ChangesShareholder Meetings
Kinder Morgan Shareholders Back Board, Auditor and Pay
Positive
May 19, 2026
Kinder Morgan, Inc. held its 2026 Annual Meeting of Stockholders on May 13, 2026, with 1,974,609,446 common shares represented, sufficient to constitute a quorum for conducting business. Shareholders voted on the election of directors, ratificatio...
Business Operations and Strategy
Kinder Morgan Schedules Investor Conferences, Highlights Ongoing Outreach
Positive
May 15, 2026
On May 14, 2026, Kinder Morgan, Inc. said its representatives plan to meet investors at the EIC Annual Energy Infrastructure Investor Conference on May 19 and the Bernstein Strategic Decisions Conference on May 27 to discuss the company’s bu...
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.