Valued at a market cap of $58.7 billion, Kinder Morgan, Inc. (KMI) is one of North America's largest energy infrastructure companies, specializing in the transportation and storage of natural gas, crude oil, refined petroleum products, and other energy commodities. Headquartered in Houston, Texas, KMI owns and operates an extensive network of pipelines and terminals that play a critical role in delivering energy across the continent.
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 & gas midstream industry. KMI is known for its stable cash flow, which is supported by long-term contracts and fee-based revenue streams, making it a key player in North America's energy infrastructure.
Kinder Morgan recently touched its 52-week high of $31.48 on Jan. 21 and is currently trading 15.8% below that peak. KMI stock prices have surged 1.4% over the past three months, outpacing the Energy Select Sector SPDR Fund’s (XLE) 2.1% drop over the same time frame.
Kinder Morgan’s long-term performance remains strong. Over the past six months, KMI has surged 26.7%, and over the past year, it has gained 47.8%, significantly outperforming the XLE’s 3.1% rise in the last six months. Moreover, XLE has declined 1.3% over the past year, highlighting KMI’s superior gains.
KMI has consistently traded above its 200-day moving average since the past year but below its 50-day moving average since end of January.
KMI stock slipped nearly 1% following the release of its underwhelming Q4 results on Jan. 22. Its revenue was $3.99 billion, slightly down from $4.04 billion in the previous year and below analysts' expectations of $4.18 billion. The adjusted EPS of $0.32 also fell short of the anticipated $0.34 per share.
KMI also announced the Trident Intrastate Pipeline Project, a $1.7 billion investment to enhance natural gas infrastructure. This 216-mile pipeline will connect Katy, Texas, to Port Arthur, with an expected in-service date in the first quarter of 2027.
Kinder Morgan has lagged behind its peer Targa Resources Corp.’s (TRGP) 27.5% gains over the past six months and 77.2% returns over the past year.
Among the 18 analysts covering the KMI stock, the consensus rating is a “Moderate Buy.” The mean price target of $31 implies a potential upside of 16.9% from the current market prices.
On the date of publication, Kritika Sarmah 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.
