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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. KMI's Q3 2025 Earnings: Strong Performance and Growth Outlook

Kinder Morgan's (KMI) third-quarter 2025 earnings call highlighted the company's strong financial performance, with EBITDA up 6% and adjusted EPS growing 16% year-over-year to $0.29, slightly below estimates of $0.2918. The company's natural gas segment, which accounts for two-thirds of its business, outperformed its budget, driven by growth in LNG feedgas demand and increasing demand for electricity to serve AI data centers. KMI's revenues grew in line with its expanding infrastructure, although the exact revenue figure was not specified.

Publication Date: Oct -24

📋 Highlights
  • EBITDA and EPS Growth:: Q3 2025 EBITDA rose 6% YoY, adjusted EPS grew 16%, driven by natural gas segment outperformance and acquisition synergies.
  • Expansion Backlog:: $9.3 billion in sanctioned projects, focused on natural gas infrastructure for power generation and LNG exports, with no significant changes in backlog.
  • Balance Sheet Strength:: Net debt/adjusted EBITDA ratio declined to 3.9x from 4.1x Q1 2025, while declaring a 2% dividend increase to $0.2925/share.
  • 2030 Natural Gas Demand:: Forecasts 28 Bcf/day growth by 2030, fueled by LNG exports and power generation, with KMI transporting 40% of US natural gas.
  • Unsanctioned Growth Projects:: $10 billion opportunity set in unsanctioned natural gas projects, including Haynesville expansion and Appalachian capacity upgrades.

Segment Performance and Growth Drivers

The natural gas segment's outperformance was driven by increasing demand for LNG exports and power generation. KMI's expansion backlog remained flat at $9.3 billion, with a focus on natural gas projects supporting power generation and LNG exports. The company is pursuing projects across the Southern US, including power generation, LNG exports, and industrial growth, with a $10 billion opportunity set in unsanctioned projects under development, primarily in natural gas.

Balance Sheet Strength and Dividend

KMI's balance sheet has strengthened, with a net debt to adjusted EBITDA ratio of 3.9x, down from 4.1x at the end of the first quarter. The company declared a quarterly dividend of $0.2925 per share, representing a 2% increase over 2024. The dividend yield stands at 4.5%, indicating an attractive return for income investors.

Valuation and Growth Outlook

With a P/E Ratio of 21.05 and an EV/EBITDA ratio of 11.51, KMI's valuation suggests a moderate growth premium. Analysts estimate next year's revenue growth at 5.0%, indicating a steady increase in top-line performance. KMI's growth outlook is driven by its $10 billion opportunity set in unsanctioned projects, primarily in natural gas, and its existing infrastructure provides a competitive advantage.

Project Updates and M&A

KMI is making progress on various projects, including the Hiland Express NGL conversion project, which is on track for initial commitment in 1Q next year. The company is also exploring opportunities in the Haynesville, with plans to expand infrastructure to get gas to market. On the M&A front, KMI is opportunistic, looking for assets that fit its strategy of owning energy infrastructure with fee-based returns, within its debt to EBITDA metrics of 3.5x to 4.5x.

3. NewsRoom

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Kinder Morgan (KMI) Exceeds Market Returns: Some Facts to Consider

Dec -04

Source:

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I Am Betting Big On This Near-Perfect 8%-Yielding Income Machine For Early Retirement

Dec -02

Source: seekingalpha.com

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The Next 3 Years Could Make Or Break Portfolios - Here's My Plan

Dec -02

Source: seekingalpha.com

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7%+ Yields: I Am Giving Thanks For My Favorite Black Friday Special

Nov -28

Source: seekingalpha.com

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8 'Safer' Dividend Buys In Barron's 23 Better November Bets Than T-Bills

Nov -28

Source: seekingalpha.com

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ET vs. KMI: Which Midstream Stock Has More Upside Potential for Now?

Nov -26

Source: zacks.com

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Advisors Asset Management Inc. Boosts Holdings in Kinder Morgan, Inc. $KMI

Nov -26

Source: defenseworld.net

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3 Dividend Stocks to Hold for the Next 5 Years

Nov -22

Source: fool.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: 7.5/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 7.7

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Enterprise Products Partners

A-Score: 6.9/10

Value: 5.7

Growth: 5.0

Quality: 4.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Energy Transfer

A-Score: 6.7/10

Value: 7.2

Growth: 3.6

Quality: 4.1

Yield: 10.0

Momentum: 6.0

Volatility: 9.3

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Kinder Morgan

A-Score: 6.4/10

Value: 4.0

Growth: 3.6

Quality: 5.2

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.6

Quality: 5.6

Yield: 8.0

Momentum: 8.0

Volatility: 9.0

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ONEOK

A-Score: 6.0/10

Value: 5.5

Growth: 5.2

Quality: 4.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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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

27.74$

Current Price

27.75$

Potential

-0.00%

Expected Cash-Flows