Houston, Texas-based Kinder Morgan, Inc. (KMI) operates primarily as an energy infrastructure company in North America. With a market cap of $46.2 billion, Kinder Morgan operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Kinder Morgan fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the oil and gas midstream industry. It owns and operates approximately 82,000 miles of pipelines and 139 terminals.
Kinder Morgan has slipped 4.2% from its 52-week high of $21.86 achieved on Jul. 22. KMI gained 5.3% over the past three months, outpacing the Nasdaq Composite’s ($NASX) marginal dip during the same time frame.
Over the past year, Kinder Morgan gained 22.2%, lagging behind NASX’s 27.6% gains. However, in 2024, KMI is up 18.7%, outpacing NASX’s 17% returns on a YTD basis.
To confirm the bullish trend, KMI has been trading above its 50-day and 200-day moving averages since late February.
Shares of Kinder Morgan rose 2.5% in the trading session after the release of its Q2 earnings on Jul. 17. The company reported a 2% year-over-year revenue growth, reaching $3.6 billion. However, net income attributable to shareholders declined by 1.9% to $575 million, though it met its EPS estimates of $0.25.
Kinder Morgan has faced several operational challenges over the past quarters, including weaker-than-expected commodity prices and a mild winter that impacted its natural gas operations. Despite recent improvements and increased LNG export volumes, the company faced lower-than-anticipated revenues.
Nevertheless, it remains optimistic about the future, due to rising natural gas demand from data centers. The company’s plans for expansion projects to meet this growing demand are a key factor behind the stock’s rise post-earnings release.
Kinder Morgan’s competitor Targa Resources Corp. (TRGP) has substantially outperformed KMI. TRGP gained 72.2% over the past year and 68.9% in 2024.
Among the 19 analysts covering the KMI stock, the consensus rating is a “Moderate Buy.” The mean price target of $22.25 represents a potential upside of 6.3% from current price levels.
On the date of publication, Aditya Sarawgi 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.
