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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on KMI

Kinder Morgan's recent performance was driven by strong demand for natural gas, fueled by increasing electricity consumption and data center growth. The company's extensive infrastructure, including the $1.7 billion Trident Intrastate Pipeline, positions it for growth in 2025. Additionally, Kinder Morgan's solid dividend growth prospects and resilience in volatile oil markets make it an attractive investment opportunity. The company's focus on balance sheet deleveraging and core natural gas business growth also supports its strong outlook and risk profile.

1.c. Company Highlights

2. Kinder Morgan's Strong 4Q 2025 Results Driven by Natural Gas Business

Kinder Morgan (KMI) reported a robust fourth-quarter 2025, with adjusted EBITDA rising 10% and adjusted EPS increasing 22% compared to the same period in 2024. The actual EPS came out at $0.39, beating estimates of $0.3648. The company's natural gas business was the primary driver of this outperformance, with transport volumes up 9% and gathering volumes up 19% in the quarter. For the full year 2025, KMI grew adjusted EBITDA by 6% and adjusted EPS by 13%, exceeding its budget. The company's financial performance was highlighted by its CEO, Kim Dang, who noted that KMI achieved record results for the quarter and year.

Publication Date: Jan -23

📋 Highlights
  • Adjusted EBITDA & EPS Growth:: 10% and 22% increase YoY, driven by strong natural gas business performance.
  • Project Backlog Expansion:: $10 billion backlog, up $650 million, with $900 million in new projects added in Q4 2025.
  • Balance Sheet Strength:: Net debt/EBITDA ratio improved to 3.8x from 4.1x in Q1 2025, alongside S&P rating upgrade to BBB+.
  • Dividend Growth & Capacity:: 2% increase in quarterly dividend and $850 million of capacity per 0.1x leverage reduction from projects.
  • Future CapEx & Outlook:: $3+ billion annual growth CapEx for next few years, with natural gas demand expected to exceed 34 Bcf/day by 2030.

Project Backlog and Growth Prospects

KMI's project backlog increased by approximately $650 million to $10 billion, with over $900 million in new projects added, offset by $265 million of projects placed in service. The company expects strong growth in natural gas demand, with feed gas demand estimated to average 19.8 Bcf per day in 2026 and over 34 Bcf per day by 2030. KMI has a significant backlog, and even without leveraging up to 4.5x, they have plenty of capacity to accommodate opportunities. The company's growth capital expenditure (CapEx) is estimated to be at least $3 billion per year for the next few years, based on their $10 billion approved project backlog and some view of the $10 billion opportunity set.

Balance Sheet Strength and Dividend

The company's balance sheet has strengthened, with a net debt to adjusted EBITDA ratio of 3.8x, down from 4.1x at the end of the first quarter. S&P upgraded KMI's rating to BBB+ last week, reflecting the company's improved financial profile. KMI declared a quarterly dividend of $0.2925 per share, up 2% from 2024. With a dividend yield of 3.92%, the stock offers an attractive return for income-seeking investors.

Valuation Metrics

With a P/E ratio of 24.21 and an EV/EBITDA ratio of 12.62, KMI's valuation appears reasonable considering its growth prospects. The company's ROE of 8.89% and ROIC of 5.23% indicate a decent return on equity and invested capital. Analysts estimate next year's revenue growth at 6.3%, which, combined with the company's strong backlog and improving balance sheet, suggests that KMI is well-positioned for future growth.

3. NewsRoom

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2 No-Brainer High-Yield Energy Stocks to Buy for Reliable Income Right Now

Feb -02

Source: fool.com

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Kinder Morgan, Inc. (NYSE:KMI) Given Consensus Rating of “Moderate Buy” by Brokerages

Feb -02

Source: defenseworld.net

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Why Dividend Stocks Are Essential For What Comes Next

Jan -30

Source: seekingalpha.com

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Bank of New York Mellon Corp Lowers Stock Position in Kinder Morgan, Inc. $KMI

Jan -30

Source: defenseworld.net

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What the LNG Wave Means for Gas Market Exposure in 2026

Jan -29

Source: zacks.com

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This Isn't An AI Bubble - It's An $85 Trillion Infrastructure Boom

Jan -29

Source: seekingalpha.com

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Kinder Morgan Remains A Valuable Dividend Payer

Jan -27

Source: seekingalpha.com

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3 Midstream Stocks Positioned to Withstand Energy Price Swings

Jan -26

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.30%)

6. Segments

Natural Gas Pipelines

Expected Growth: 4.5%

As natural gas production continues to increase, the demand for pipeline capacity will also grow, driving revenue growth for this segment. Additionally, Kinder Morgan's extensive pipeline network provides a competitive advantage, allowing the company to capitalize on growing demand.

Products Pipelines

Expected Growth: 4.2%

While demand for refined petroleum products may be impacted by the transition to alternative energy sources, the existing infrastructure and Kinder Morgan's expertise in this area will continue to drive revenue growth.

Terminals

Expected Growth: 4.6%

The growth of international trade and the need for efficient logistics will drive demand for terminal services, resulting in revenue growth for this segment.

CO2

Expected Growth: 4.8%

As EOR operations continue to grow, the demand for CO2 will increase, driving revenue growth for this segment. Additionally, Kinder Morgan's extensive CO2 pipeline network provides a competitive advantage.

Corporate and Intersegment Eliminations

Expected Growth: 4.3%

This segment's growth is expected to be in line with the overall company's growth rate, as it is primarily driven by the elimination of intersegment revenues and expenses.

7. Detailed Products

Natural Gas Pipelines

Kinder Morgan owns and operates a vast network of natural gas pipelines, transporting approximately 40% of the natural gas consumed in the United States.

Refined Products Pipelines

Kinder Morgan operates pipelines that transport refined petroleum products, such as gasoline, diesel fuel, and jet fuel, to markets across North America.

Crude Oil Pipelines

The company's crude oil pipelines transport crude oil from production areas to refineries, supporting the production of refined petroleum products.

Terminals

Kinder Morgan operates a network of terminals that store and handle petroleum products, chemicals, and other liquids.

Carbon Dioxide (CO2)

The company produces and transports CO2, used in enhanced oil recovery (EOR) operations to increase oil production from existing fields.

Liquids Storage and Handling

Kinder Morgan provides storage and handling services for petroleum products, chemicals, and other liquids at its terminals and facilities.

8. Kinder Morgan, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kinder Morgan, Inc. operates in the energy infrastructure industry, which has a moderate threat of substitutes. While there are alternative energy sources, the demand for oil and gas is still high, and the company's diversified portfolio of pipelines and terminals provides a competitive advantage.

Bargaining Power Of Customers

Kinder Morgan, Inc. has a diverse customer base, including major oil and gas companies, which reduces the bargaining power of individual customers. Additionally, the company's strategic location and infrastructure provide a competitive advantage, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Kinder Morgan, Inc. relies on a few major suppliers for its pipeline and terminal operations. While the company has some bargaining power due to its size and scale, suppliers may still have some negotiating power, particularly if they are providing specialized services or equipment.

Threat Of New Entrants

The energy infrastructure industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. These barriers make it difficult for new entrants to compete with established players like Kinder Morgan, Inc.

Intensity Of Rivalry

The energy infrastructure industry is highly competitive, with several major players vying for market share. Kinder Morgan, Inc. faces intense competition from companies like Enterprise Products Partners, Enbridge, and TransCanada, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.45%
Debt Cost 7.20%
Equity Weight 48.55%
Equity Cost 8.33%
WACC 7.75%
Leverage 105.97%

11. Quality Control: Kinder Morgan, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cheniere Energy Partners

A-Score: 7.1/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 4.0

Volatility: 7.7

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Enterprise Products Partners

A-Score: 7.0/10

Value: 5.8

Growth: 5.1

Quality: 6.4

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

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Energy Transfer

A-Score: 6.4/10

Value: 7.3

Growth: 3.6

Quality: 3.9

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

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Kinder Morgan

A-Score: 6.2/10

Value: 3.9

Growth: 3.6

Quality: 5.3

Yield: 9.0

Momentum: 6.0

Volatility: 9.7

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Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.3

Quality: 5.7

Yield: 9.0

Momentum: 7.0

Volatility: 9.0

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ONEOK

A-Score: 6.1/10

Value: 6.5

Growth: 5.2

Quality: 5.2

Yield: 10.0

Momentum: 1.0

Volatility: 8.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.61$

Current Price

29.61$

Potential

-0.00%

Expected Cash-Flows