Kinder Morgan (KMI) AI Stock Analysis

• Market Cap: $57.49B
• Dividend Yield: 4.51%
• Average Volume (3M): 14.50M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.50
• Revenue Growth: 8.54%
• EPS Growth: 7.22%
• Country: US
• Employees: 10,933
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.29
• Shares Outstanding: 2,224,760,500
• 10 Day Avg. Volume: 17,062,323
• 30 Day Avg. Volume: 14,502,773
• PEG Ratio: 2.24
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 4.04
• P/FCF Ratio: 20.24
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 5.89
• Enterprise Value/Gross Profit: 16.75
• Enterprise Value/Ebitda: 12.38
• 1Y Price Target: $32.00
• Price Target Upside: 23.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.29
• Revenue Forecast (FY): $16.73B

• Rating: 68 Neutral
• Price Target: $28.00 ▲(8.36% Upside)

Kinder Morgan's overall stock score is driven by strong financial performance and a positive earnings call, highlighting robust natural gas demand and strategic project developments. However, technical analysis indicates bearish trends, and the valuation suggests potential overvaluation. The attractive dividend yield provides a buffer, but market momentum remains a concern.

Positive Factors

Strong Cash Generation

Kinder Morgan's robust cash generation capabilities enhance its ability to invest in growth opportunities and maintain financial stability, supporting long-term business sustainability.

Natural Gas Segment Outperformance

The natural gas segment's strong performance underscores Kinder Morgan's strategic focus and competitive advantage in a growing market, driving future revenue growth.

Robust Project Pipeline

A strong project pipeline positions Kinder Morgan for sustained growth, leveraging its infrastructure to capitalize on increasing energy demands and regulatory support.

Negative Factors

CO2 Segment Decline

The decline in the CO2 segment highlights challenges in diversifying revenue streams, potentially impacting overall growth and profitability if not addressed.

Rising Debt Levels

Reliance on debt financing can constrain financial flexibility and increase risk, necessitating careful management to maintain balance sheet health.

Weak RNG Volumes and RIN Prices

Weak RNG volumes and RIN prices pose challenges to earnings stability, highlighting potential vulnerabilities in renewable energy segments.

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 comprises several key revenue streams. The Natural Gas Pipelines segment is the largest contributor, earning money by charging customers for the transportation of natural gas through its extensive pipeline network. The CO2 segment generates revenue through the sale of carbon dioxide used for enhanced oil recovery. The Terminals segment earns income by providing storage and handling services for various liquid and dry products. Additionally, the Products Pipelines segment contributes revenue through the transportation of refined products. Kinder Morgan also benefits from long-term contracts with customers, which provide stable cash flows. Strategic partnerships and joint ventures with other companies in the energy sector further enhance its earnings potential.

Kinder Morgan Financial Statement Overview

Summary

Kinder Morgan demonstrates solid financial health with consistent revenue growth and strong cash flow generation. While the company maintains healthy profit margins, there is a slight decline in operational efficiency. The balance sheet shows a moderate level of leverage, typical for the industry, but there is potential to optimize the capital structure further.

Income Statement

Kinder Morgan's income statement shows a stable revenue growth rate of 2.95% in the TTM period, indicating a positive trajectory after previous fluctuations. The company maintains healthy margins with a gross profit margin of 35.18% and a net profit margin of 16.62%. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.06, which is typical for the industry but indicates a reliance on debt financing. The return on equity is stable at 8.89%, showing effective use of equity capital. The equity ratio stands at 42.50%, suggesting a balanced capital structure, though there is room for improvement in reducing leverage.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 106.5% in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 1.45 indicates robust cash flow relative to earnings, and the free cash flow to net income ratio of 0.49 suggests efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.41B	15.07B	15.16B	19.55B	17.53B	11.48B
Gross Profit	5.77B	5.53B	5.13B	5.50B	6.37B	4.28B
EBITDA	7.81B	7.63B	7.25B	7.03B	5.85B	4.41B
Net Income	2.73B	2.61B	2.39B	2.55B	1.78B	119.00M
Balance Sheet
Total Assets	72.32B	71.41B	71.02B	70.08B	70.42B	71.97B
Cash, Cash Equivalents and Short-Term Investments	71.00M	88.00M	83.00M	745.00M	1.14B	1.18B
Total Debt	32.58B	31.67B	31.89B	31.57B	33.21B	34.58B
Total Liabilities	40.28B	39.54B	39.29B	37.96B	38.49B	39.41B
Stockholders Equity	30.74B	30.53B	30.31B	30.74B	30.82B	31.44B
Cash Flow
Free Cash Flow	2.75B	3.01B	4.15B	3.35B	4.43B	2.84B
Operating Cash Flow	5.74B	5.63B	6.49B	4.97B	5.71B	4.55B
Investing Cash Flow	-3.47B	-2.63B	-4.17B	-2.17B	-2.31B	-911.00M
Financing Cash Flow	-2.26B	-2.89B	-3.01B	-3.15B	-3.46B	-2.64B

Kinder Morgan Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMI, the sentiment is Negative. The current price of 25.84 is below the 20-day moving average (MA) of 26.56, below the 50-day MA of 26.90, and below the 200-day MA of 26.78, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 11.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KMI.

Kinder Morgan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$52.18B	12.15	31.38%	7.54%	4.67%	2.07%
EPD	75 Outperform	$65.43B	11.44	―	7.15%	-6.41%	―
OKE	74 Outperform	$40.47B	11.83	17.14%	6.41%	58.76%	13.74%
ET	70 Outperform	$56.81B	12.77	13.73%	7.71%	-3.65%	9.69%
KMI	68 Neutral	$57.49B	21.18	8.87%	4.51%	8.54%	7.22%
WMB	68 Neutral	$69.01B	29.24	19.00%	3.43%	11.48%	-17.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Kinder Morgan Corporate Events

Kinder Morgan’s Earnings Call Highlights Growth and Challenges

Kinder Morgan’s recent earnings call presented a generally positive outlook, driven by strong earnings growth, a robust project pipeline, and improved financial metrics. Despite challenges in the RNG market and CO2 segment, the positive aspects, particularly in the natural gas segment, outweigh the lowlights.

Kinder Morgan Reports Strong Q3 2025 Performance

Kinder Morgan, Inc. is a leading energy infrastructure company in North America, specializing in the transportation and storage of natural gas, refined petroleum products, crude oil, and other commodities. The company operates an extensive network of pipelines and terminals, providing critical energy services across the continent.

Kinder Morgan to Participate in Wolfe Conference

On September 25, 2025, Kinder Morgan announced its participation in the Wolfe Utilities, Midstream & Clean Energy Conference scheduled for September 30, 2025. The company plans to discuss its business operations and strategies, with materials and a live webcast available on its website, indicating a proactive engagement with stakeholders and industry peers.

The most recent analyst rating on (KMI) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.

Kinder Morgan to Present at Barclays Conference

On August 28, 2025, Kinder Morgan announced its participation in the Barclays Energy-Power Conference on September 3, 2025, where company representatives will discuss its business operations. The presentation will be available via live and archived webcast on Kinder Morgan’s website, potentially impacting stakeholder engagement and market perception.

The most recent analyst rating on (KMI) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.

Kinder Morgan to Attend Citi Natural Resources Conference

On August 6, 2025, Kinder Morgan announced its participation in the Citi 2025 Natural Resources Conference scheduled for August 12-13, 2025. This participation is aimed at discussing the company’s business and affairs, with materials to be made available on their website prior to the event, highlighting its proactive engagement with stakeholders and potential impact on its market positioning.

The most recent analyst rating on (KMI) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Kinder Morgan stock, see the KMI Stock Forecast page.