Houston, Texas-based Kinder Morgan, Inc. (KMI) is a prominent player in the energy infrastructure sector, specializing in the ownership and operation of pipelines and storage terminals. With a market cap of $44.63 billion, KMI is a crucial entity in the energy industry, ensuring the reliable transportation and storage of natural gas, crude oil, and refined petroleum products. Competing fiercely with other energy infrastructure companies, Kinder Morgan's primary rival is Enbridge Inc. (ENB), renowned for its extensive network of pipelines and commitment to safety and sustainability.
Companies valued at $10 billion or more are generally considered "large-caps," and Kinder Morgan fits this criterion perfectly, signifying its substantial size, stability, and influence in the energy infrastructure sector. KMI is a key player in the industry, ensuring the reliable transportation and storage of natural gas, crude oil, and refined petroleum products.
KMI shares are trading marginally below their 52-week high of $20.19, which they hit on Jun. 24. Also, the stock has gained 11.9% over the past three months, outperforming the S&P 500 Index’s ($SPX) 4.8% returns over the same time frame.
Longer term, KMI is up 14% on a YTD basis, and the shares have gained 23.2% over the past 52 weeks. In comparison, the S&P 500 has gained 14.7% in 2024 and 25.8% over the past year.
To confirm the bullish price action, KMI has been trading above its 200-day moving average since mid-February and its 50-day moving average since late February.
KMI reported its Q1 results on Apr. 17. The company reported earnings of $746 million, translating to a net income of 33 cents per share. Adjusted earnings were 34 cents per share, exceeding Wall Street expectations of 33 cents per share. The company generated $3.84 billion in revenue during the period and anticipates full-year earnings of $1.22 per share.
The stock gained marginally on the earnings release day and 2.5% the following day. Following its recent earnings release, Kinder Morgan's shares surged due to a growing backlog of capital projects, now at $3.3 billion, and the company's attractive high-yielding dividend.
Highlighting the contrast in performance, rival ENB has underperformed both KMI and SPX, with a 2.8% decline on a YTD basis.
Given KMI's recent outperformance compared to SPX, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target of $20.94 reflects a 4.2% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
