Company Reports

Kinder Morgan is predominantly a natural gas midstream firm, with interstate pipelines spanning the US that connect most US gas demand centers to producing regions.

Kinder Morgan's second-quarter adjusted EBITDA was $2.20 billion versus PitchBook consensus of $2.06 billion. Higher oil prices lifted the enhanced oil recovery business, and stronger demand boosted volumes in the natural gas and terminals segments. The backlog declined as projects entered service.

Kinder Morgan is predominantly a natural gas midstream firm, with interstate pipelines spanning the US that connect most US gas demand centers to producing regions.

Kinder Morgan delivered first-quarter adjusted EBITDA of $2.5 billion versus PitchBook consensus of $2.3 billion, as the Texas intrastate system benefited from higher volumes during the winter season. Management raised its organic 2026 EBITDA growth outlook modestly as a result.

Kinder Morgan is predominantly a natural gas midstream firm, with interstate pipelines spanning the US that connect most US gas demand centers to producing regions.

Kinder Morgan reported earnings per share above expectations—$.39 versus $.36 FactSet consensus—driven by natural gas segment performance. Management highlighted tight gas markets and strong activity across the portfolio as reasons for the beat, factors that look likely to continue in 2026.

Kinder Morgan is predominantly a natural gas midstream firm, with interstate pipelines spanning the US that connect most US gas demand centers to producing regions.

Kinder Morgan management highlighted not only its natural gas portfolio, but also the Western Gateway pipeline during its third-quarter earnings announcement, which would shore up the fragile Western refined products market after a dual refinery decommissioning and a fire that knocked out another.

Kinder Morgan is predominantly a natural gas midstream firm, with interstate pipelines spanning the US that connect most US gas demand centers to producing regions.

Kinder Morgan reported $0.62 per share of adjusted earnings per share during the first half of 2025, up 5% from the first half of 2024. Adjusted EBITDA in the second quarter was up 6% year over year to $2 billion.

During a series of investor meetings in May, Kinder Morgan management reiterated its outlook for 2025 and the long-term growth opportunities from increased demand for natural gas from power generation, data centers, and liquefied natural gas expansions.

Kinder Morgan's assets span the US energy landscape, with a primary and increasing concentration in natural gas infrastructure.

Kinder Morgan's final 2025 budget reaffirms its plan to grow earnings per share 10% along with investing $2.5 billion in growth projects during the year, one of its largest single-year growth investment plans in a decade.

Kinder Morgan's assets span the energy landscape, from natural gas and natural gas liquids to oil and liquefied natural gas.

Chinese artificial intelligence firm DeepSeek's open-source reasoning model has led to questions about how much energy will be required to power future data centers. We still think data center growth will result in more electricity and gas demand, but not as much as market valuations suggested.

Kinder Morgan reported $1.15 per share of adjusted earnings per share in 2024, up 7% from 2023. Full-year adjusted EBITDA was up 5% year over year to $7.9 billion, slightly lower than management's $8.2 billion budget and our estimate at the beginning of 2024.

Kinder Morgan management is projecting $8.3 billion adjusted EBITDA and $1.27 adjusted earnings per share in 2025, both up from 2024 primarily due to the company's in-service and under-construction growth projects.

We reaffirm our $22 fair value estimate after reviewing Kinder Morgan's third-quarter and year-to-date results. We also reaffirm our narrow moat rating.

Kinder Morgan's assets span the energy landscape, from natural gas and natural gas liquids to oil and liquefied natural gas.

Kinder's second-quarter earnings were solid, in our view. We see no reason to change our $22 per share fair value estimate or narrow moat rating. The firm reaffirmed 2024 guidance of $8.16 billion in EBITDA, essentially matching our view, which is up 8% over 2023 levels. Due to its expansive footprint of assets, we continue to think Kinder is one of the better-positioned US midstream firms to capture artificial intelligence and data center demand out to 2030, as well as higher US LNG exports and Mexican natural gas exports.