Kinder Morgan today
Morgan’s children
- 52 week range
- $16.47
▼
$31.48
- Dividend yield
- 3.77%
- P/E ratio
- 26.74
- Target price
- $28.92
Kinder Morgan New York Stock Exchange: KMI The share price has increased by 100% since the end of 2023 and will continue to rise in 2025. The company’s results are supported by growing demand for its core products, strengthened by expansion of its presence, and improved results and return on capital. The company’s payout ratio may scare investors at first glance, but fear not; The nearly 100% payout to adjusted earnings ratio is irrelevant.
The company was once an MLP, but continues to pay its investors as if it were one. This means that dividends refer to distributable cash flow sufficient to support high-yield payouts, distribution growth prospects, and a healthy balance sheet while the company finances its growth projects internally.
Kinder Morgan has numerous expansion projects, including the recently announced Trident intrastate pipeline project. The project will connect critical LNG infrastructure in Katy, Texas, to Port Arthur and is backed by long-term customer contracts to ensure profitability. Other projects improve processing and distribution capabilities, providing business leverage in 2025 and beyond.
The key takeaways from the LNG outlook are that prices will remain stable in 2025, supported by rising demand in the industrial, power, data center and consumer sectors. The growth in demand critical to KMI’s performance will be most significant overseas, and U.S. operators such as Kinder Morgan are poised to meet it.
To paraphrase KMI CEO Kimberly A. Dang, with President Trump in office and the current surge in demand, the future is bright for Kinder Morgan and other pipeline operators.
Kinder Morgan Misses Q4 Estimates: So What?
Kinder Morgan stock forecast for today
$27.00
-11.14% DisadvantageModerate purchase
Based on ratings from 13 analysts
| High forecast | $34.00 |
|---|---|
| Average forecast | $27.00 |
| Low forecast | $23.00 |
Kinder Morgan stock forecast details
Kinder Morgan reported a weaker quarter than analysts’ consensus estimates reported by MarketBeat, but operational improvements offset the shortfall. Revenue of $3.99 billion fell 1.2% year-over-year, missing consensus estimates by 400 basis points as weakness in its pipeline products segment offset growth in natural gas.
The key takeaway is that operational improvement led to EBDA growth across most segments and systemwide, resulting in solid double-digit net income growth. Adjusted earnings of $0.32 missed consensus by a penny but were up 14% with similarly strong gains in adjusted EBITDA, net income and free cash flow.
Management is a factor in post-issue price action. The company issued firm guidance for 2025, expecting net income attributable to investors to rise 8% to $2.8 billion. Adjusted earnings per share and dividends are also forecast to rise. The dividend forecast is moderate: growth will be only 2%, but the pace is sustainable and allows for reinvestment and debt reduction.
The company’s net debt to adjusted EBITDA ratio decreased by 40 bps. quarterly to 3.8X and is forecast to fall at least 20 basis points in 2025. Balance sheet fundamentals also indicate strong distribution and growth with increasing cash and assets offsetting liabilities, shareholders’ equity is gradually increasing, and overall leverage is very low at just 1.25X shareholders’ equity.
Analyst trends support KMI share price, but tailwinds will continue to blow
Analyst trends are creating tailwinds for the KMI market, with coverage increasing in 2024, sentiment strengthening to a moderate buy instead of a hold, and a 35% increase in the consensus price target. Consensus for early 2025 trails the market, but the revision leads to a top range that suggests 10% upside potential from mid-January price action. These trends are expected to continue into 2025, causing prices to rise even further.
Technical action for KMI stock is strong. The market is up 100% from its lows and looks strong heading into 2025. Action in late 2024 and early 2025 represents a consolidation and continuation signal that could lead to a $12 move from the breakout point. That puts the target at $40, which is close to an all-time high.
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