Kinder Morgan (KMI - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this oil and natural gas pipeline and storage company have returned +1.8%, compared to the Zacks S&P 500 composite's -0.1% change. During this period, the Zacks Oil and Gas - Production and Pipelines industry, which Kinder Morgan falls in, has lost 0.8%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Kinder Morgan is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of +13.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $1.54 points to a change of +18.5% from the prior year. Over the last 30 days, this estimate has changed +0.7%.
For the next fiscal year, the consensus earnings estimate of $1.55 indicates a change of +0.3% from what Kinder Morgan is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Kinder Morgan.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Kinder Morgan, the consensus sales estimate for the current quarter of $4.49 billion indicates a year-over-year change of +8.3%. For the current and next fiscal years, $18.49 billion and $19.28 billion estimates indicate +9.2% and +4.2% changes, respectively.
Last Reported Results and Surprise HistoryKinder Morgan reported revenues of $4.48 billion in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $0.37 for the same period compares with $0.28 a year ago.
Compared to the Zacks Consensus Estimate of $4.29 billion, the reported revenues represent a surprise of +4.33%. The EPS surprise was +19.35%.
Over the last four quarters, Kinder Morgan surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Kinder Morgan is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinder Morgan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, Kinder Morgan (KMI - Free Report) was down 1.16% at $31.60. This change lagged the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.4%.
The stock of oil and natural gas pipeline and storage company has risen by 2.73% in the past month, lagging the Oils-Energy sector's gain of 4.7% and overreaching the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Kinder Morgan in its forthcoming earnings report. In that report, analysts expect Kinder Morgan to post earnings of $0.33 per share. This would mark year-over-year growth of 13.79%. Simultaneously, our latest consensus estimate expects the revenue to be $4.49 billion, showing a 8.33% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.54 per share and a revenue of $18.49 billion, indicating changes of +18.46% and +9.19%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Kinder Morgan. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.74% upward. As of now, Kinder Morgan holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Kinder Morgan is holding a Forward P/E ratio of 20.73. This valuation marks a premium compared to its industry average Forward P/E of 20.35.
Also, we should mention that KMI has a PEG ratio of 2.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Two natural gas pipeline giants are sending steady dividend checks to shareholders, but a closer look at growth rates, payout coverage, and streak length separates a C+ performer from an A- contender in the same sector.
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Two natural gas pipeline giants just cut checks to shareholders, and the fine print reveals why they deserve very different dividend grades. Kinder Morgan (NYSE:KMI | KMI Price Prediction) sent investors $0.2975 per share on August 17, 2026, while Williams Companies (NYSE:WMB) most recently paid $0.525 per share on June 29, 2026, with another $0.525 payment scheduled for September 28. Same sector, same customer base, same natural gas tailwinds. Very different scorecards.
The gap comes down to growth rate, payout coverage, and streak length. One is compounding faster and covering the payout more comfortably. The other is running a tighter payout ratio with slower raises. Here is the grading.
Kinder Morgan Scorecard: Solid Yield, Sluggish Raises KMI’s latest quarterly dividend of $0.2975 annualizes to $1.19 per share, an increase of 2% over 2025. CFO David Michels framed it plainly on the Q2 2026 call: “We’re declaring a quarterly dividend of 29.75 cents per share, which is $1.19 annualized and an increase of 2% over 2025.” With shares at $32.10, the forward yield sits in the high-3% range.
KMI generated $3.45 billion of cash flow from operations year to date against $1.315 billion paid in dividends, while running 3.6 times net debt to adjusted EBITDA, comfortably below the 4.0 times target midpoint. The operating story is strong: adjusted EBITDA rose 12% and adjusted EPS rose 32% year over year. Executive Chairman Rich Kinder called the payout “solid and growing” and noted the company has paid out over $40 billion in dividends over its history.
The catch: a 2% raise is barely keeping pace with inflation, and the payout ratio against 2026 adjusted EPS guidance of $1.36 is tight. Grade: C+. Reliable, cash-covered, but not compounding fast enough to earn a higher mark.
Williams Companies Scorecard: Longer Streak, Bigger Raises WMB’s quarterly dividend stepped up to $0.525 in 2026 from $0.5 across 2025, an annualized $2.10 per share, up 5% from $2.00. That is more than double KMI’s growth rate. Williams is also working on its 52nd consecutive year of dividend payments, a streak that predates the shale era (if that kind of multi-decade raise streak is what you screen for, we ranked ten Dividend Kings by valuation in a free report here).
WMB guided to 2026 EPS of $2.20 to $2.38 and raised full-year adjusted EBITDA guidance to $8.3 billion to $8.5 billion. CEO Chad Zamarin told investors: “We are raising full-year 2026 EBITDA guidance by $200 million at the midpoint and we are increasing our long-term EBITDA growth rate target to 11 plus percent compound annual growth through 2030.” Q2 EBITDA was up 6% over 2025, and up 10% year to date.
The wart is leverage. Year-end debt to EBITDA is expected around 3.9 times following the $5.5 billion Momentum Midstream acquisition, higher than KMI. Porter conceded: “This leverage issue is really just a 26 and 27 issue.” Grade: A-. Faster growth, longer streak, credible reinvestment runway, with a temporary balance-sheet drag.
Why the Sector Backdrop Favors Both Payouts Both dividends look well-supported by the sector backdrop. The EIA forecasts Henry Hub prices averaging about $3.50/MMBtu in 2026 with LNG exports averaging 17.0 Bcf/d this year and 18.2 Bcf/d in 2027. Long-term, power sector gas demand is projected to reach 38.1 Bcf/d to 50.4 Bcf/d in 2050, compared with 35.2 Bcf/d in 2025. KMI is developing capacity to serve more than 10 BCF per day of natural gas demand in power generation and approximately 3 BCF per day in LNG. Williams’ Transco Power Express was upsized to an 800 million cubic feet per day expansion.
What to Watch Next For KMI holders, the question is whether management accelerates dividend growth beyond 2% as the backlog converts. With a $9.6 billion project backlog and shares up 20.13% year to date, capital allocation choices become louder. For WMB, watch leverage: if the $5.34 billion Power Innovation joint venture deleverages the balance sheet as promised into 2028, the A- grade has room to move higher. Same sector, different report cards.
Contact [email protected] for any questions or corrections.
Kinder Morgan delivered record Q2 net income and adjusted EBITDA and raised 2026 guidance, yet shares remain 11% below their 52-week high. KMI benefits from surging U.S. natural gas demand, with a $9.6B backlog, 40% market share in gas transport, and robust contracted cash flows. The 3.8% dividend yield is covered over 2x by distributable cash flow, with leverage at 3.6x and self-funded growth supporting further dividend increases.
Enbridge (ENB) and Kinder Morgan (KMI) both benefit from strong macro tailwinds in natural gas infrastructure, AI-driven energy demand, and LNG exports. I compare them side-by-side, detailing their strengths, weaknesses, growth outlooks, valuations, and risks. I share why I conclude that ENB is likely the better buy right now.
Key Takeaways Natural gas is projected to provide 40% of U.S. electricity generation in both 2026 and 2027.Kinder Morgan transports roughly 40% of U.S.-produced gas through the nation's largest gas network.Williams' 32,000-plus-mile pipeline network supports significant gas volumes and stable cash flows. Electricity demand is likely to remain strong, supported by rapidly expanding data centers and growing air-conditioning needs. In the United States, the world’s largest economy, natural gas remains in the spotlight as a key source of power generation.
In this context, let’s take a closer look at two large-cap midstream energy players — Williams (WMB - Free Report) and Kinder Morgan, Inc. (KMI - Free Report) — to see whether they offer compelling value.
Natural Gas Remains the Top U.S. Power Source
Natural gas is a relatively cleaner source of fuel, given its lower emissions of pollutants. Among all the energy sources, natural gas was responsible for 40% of electricity generation in the United States in 2025, per data from the U.S. Energy Information Administration (“EIA”). The proportions will also be 40% for 2026 and 2027 each, as mentioned in EIA’s latest short-term energy outlook.
By comparison, for this year, the contributions of coal, nuclear, and conventional hydropower are likely to be much lower at 16%, 18%, and 6%, respectively, per EIA’s predictions. Thus, for electricity generation, the United States is still largely dependent on natural gas. This makes energy companies involved in natural gas transportation, compression and production worth watching.
2 Pipeline Stocks to Gain: KMI, WMB
Being a leading midstream energy company, Kinder Morgan is well-positioned to benefit from the increasing demand for natural gas both in the United States and worldwide. KMI’s assets comprise the largest transportation network of natural gas in the United States and are responsible for transporting roughly 40% of all the gas produced in the domestic market.
KMI, currently carrying a Zacks Rank #3 (Hold), expects U.S. natural gas demand to grow significantly, supported by rising LNG exports and power demand, including electricity requirements for data centers. Citing Wood Mackenzie, management noted that the demand for natural gas in the United States is likely to surpass 160 billion cubic feet per day (Bcf/D) by 2035, about 46 Bcf/D higher than in 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Williams is a leading midstream energy player and is well-positioned to capitalize on clean energy demand. This is because, with its pipeline network spanning more than 32,000 miles, WMB is responsible for the transportation of significant natural gas volumes produced in the United States. Thus, the company, currently carrying a Zacks Rank of 3, generates stable cash flows for shareholders.
Four Barron's Better Bets (PFE, VZ, RF, KMI) currently offer 'safer' dividends with yields from $1K invested exceeding share prices, meeting the dogcatcher ideal. Analyst projections suggest top-ten BBB Dogs could deliver an average net gain of 15.46% by August 2027, with risk/volatility 23% below the market. Five BBB stocks show negative free cash flow margins, rendering their dividends unsafe; focus remains on those with positive cash flow and yield parity.
A month has gone by since the last earnings report for Kinder Morgan (KMI - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Kinder Morgan due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Kinder Morgan, Inc. before we dive into how investors and analysts have reacted as of late.
Kinder Morgan Q2 Earnings Beat EstimatesKinder Morgan reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents in the year-ago quarter.
Revenues increased 10.8% year over year to $4.48 billion from the prior year’s figure of $4.04 billion. Revenues surpassed the consensus estimate of $4.29 billion by 4.43%.
Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
KMI's Natural Gas Business Leads GrowthNatural Gas Pipelines adjusted segment earnings before depreciation, depletion and amortization (EBDA) expenses increased to $1.46 billion from $1.35 billion a year earlier. Higher contributions from the Texas Intrastate system and gathering assets supported the improvement.
Transportation volumes averaged 47,886 billion British thermal unit per day (BBtu/d) compared with 44,818 BBtu/d in the prior-year quarter. Growth reflected higher LNG deliveries on the Tennessee Gas Pipeline, stronger Texas Intrastate demand, higher export volumes to Mexico and increased power-generation demand in Arizona.
Gathering volumes advanced to 4,637 BBtu/d from 3,692 BBtu/d. KinderHawk volumes rose 54%, supported by increased Haynesville activity. Management noted that the system is effectively full and is adding 1 billion cubic feet per day of treating capacity.
Kinder Morgan's Other Segments AdvanceProducts Pipelines adjusted segment EBDA increased to $339 million from $289 million. Higher commodity prices and stronger butane blending volumes and rates more than offset weaker transportation activity.
Due to a temporary disruption of the West Coast supply and higher commodity prices, total refined product volumes declined 5% to 1.62 million barrels per day (MMBbl/d) from the year-ago figure of 1.71 MMBbl/d. Crude and condensate volumes fell 16% to 421,000 barrels per day (Bbl/d), largely because the Double H system was converted from crude oil to natural gas liquids service.
Terminals adjusted segment EBDA rose to $309 million from $300 million. Higher liquids terminal rates, ancillary fees and favorable commodity pricing supported results. Liquids utilization was 93%, while the Jones Act tanker fleet remained fully contracted for 2026.
CO2 adjusted segment EBDA increased to $207 million from $145 million. Total net oil production increased 10% to 28,040 Bbl/d, driven by a 15% rise in SACROC production. The realized weighted average oil price increased to $73.78 per barrel from $67.60, while the realized weighted average NGL price was $33.38 per barrel, higher than the $32.08 per barrel recorded a year earlier.
KMI's Cost Profile Supports Profit GrowthTotal operating costs, expenses and other expenditures increased 8.3% year over year to $3.13 billion. Costs of sales rose to $1.41 billion from $1.21 billion, while operations and maintenance expenses increased to $806 million from $773 million.
Operating income increased 16.8% to $1.35 billion. The operating margin expanded to 30.1% from 28.5%, reflecting revenue growth that outpaced increases in operating expenses.
Adjusted EBITDA reached a second-quarter record of $2.20 billion, up 12% year over year. Net income attributable to KMI increased 21% to $867 million, while reported earnings rose to 39 cents per share from 32 cents.
Kinder Morgan Expands Project PipelineThe project backlog stood at $9.6 billion at the end of the quarter, down from $10.1 billion sequentially after approximately $660 million of expansion projects entered service. Natural gas projects represented about 92% of the backlog.
The board also granted contingent approval to nearly $400 million of projects that will enter the backlog after contract execution. Management expects to sanction significant additional projects from an opportunity set exceeding $10 billion during the second half of 2026.
Kinder Morgan's Cash Flow & Balance SheetCash flow from operations was $1.96 billion in the quarter. Meanwhile, free cash flow was $978 million and free cash flow after dividends reached $313 million.
As of June 30, 2026, KMI reported $89 million in cash and cash equivalents. Net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.
KMI Raises 2026 OutlookKinder Morgan expects full-year adjusted earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) to exceed its original $8.6 billion budget by more than 5%. The company also expects adjusted earnings to surpass its initial $1.36-per-share budget by more than 12%.
The revised guidance reflects strong first-half performance across all business segments.
KMI’s Dividend GrowthThe quarterly dividend was raised 2% to 29.75 cents per share, equivalent to $1.19 per share annually. The dividend is payable Aug. 17, 2026, to shareholders of record as of Aug. 3.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Kinder Morgan has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kinder Morgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
The S&P 500 index tracks the performance of the 500 biggest companies in the United States. It is considered a top indicator of the U.S. stock market’s health. The venerable index is market-capitalization-weighted and tracks the 500 leading publicly traded companies in the U.S. Typically, larger companies have a significant impact on the index. The roaring success of the mega-cap Magnificent 7 stocks over the past few years is a testament to that. While the equal-weighted index may make more sense now, some of its individual stocks are incredible back-to-school bargains.
We screened the S&P 500 for high-yielding dividend stocks trading at attractive valuations across metrics including price-to-earnings and free cash flow. Five stocks caught our attention as strong ideas for growth and income investors looking to enter the fall months with less risk in their portfolios, generate dependable passive income, and deliver solid total returns over the long haul. All five are rated Buy by the top Wall Street firms we cover.
Why Do We Cover the High-Yielding S&P 500 Dividend Stocks? Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
AT&T AT&T (NYSE: T | T Price Prediction) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecom has been undergoing a lengthy restructuring process while maintaining its core operations. Eleven analysts rate the stock a Buy, indicating broad support from Wall Street. With a forward P/E near 10x, a dividend yield of 4.52%, and a moderate payout ratio of 37.19%, it has room to keep paying.
AT&T was a long-time Dividend Aristocrat before structural corporate changes and spinoffs altered its payout strategy.
AT&T provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services. Through its company-owned stores, agents, and third-party retail stores, it sells:
Handsets Wireless data cards Wireless computing devices Carrying cases Hands-free devices AT&T also provides:
Data Voice Security Cloud solutions Outsourcing Managed and provided professional services Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers This segment also provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:
AT&T Cricket AT&T PREPAID AT&T Fiber The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.
Argus has a Buy rating with a $30 target price.
General Mills With products that never go out of style and a strong 6.55% dividend yield, this is a rebound story that will reward patient investors. General Mills (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods and has a P/E ratio of 9.23, suggesting it may be undervalued relative to the consumer staples sector average. The company generates strong free cash flow, typically over $2 billion annually, which supports the current dividend even amid softer sales.
Its segments include:
North America Retail International North America Pet North America Foodservice The North America Retail segment includes a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains, convenience stores, and e-commerce grocery providers.
The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores. The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
Piper Sandler has an Overweight rating and a $45 target price.
Kinder Morgan Kinder Morgan (NYSE: KMI), one of North America’s largest energy infrastructure companies, has a solid 3.72% dividend yield. This is one of the top energy stocks and remains a Wall Street favorite, paying a solid, dependable dividend. This large-cap energy/midstream name is often grouped as a “cheap yield” pick, benefiting from steady pipeline cash flows rather than commodity price swings.
The company operates the largest natural gas transmission network in the U.S., with about 66,000 miles of pipeline that transport 40% of the country’s gas production. It serves 20% of U.S. power demand, positioning it to benefit from the projected 15% to 20% of electricity demand from AI data centers by 2030. The company’s extensive gas storage capacity (15% of U.S. total) and fee-based revenue model provide stability and growth potential as gas volumes rise.
Kinder Morgan operates through four segments. The Natural Gas Pipelines segment:
Owns and operates the 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 Liquefied natural gas liquefaction and storage facilities The Products Pipelines segment owns and operates refined petroleum products, crude oil, and condensate pipelines, associated product terminals, and petroleum OKE pipeline transmission facilities. The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:
Gasoline Diesel fuel Chemicals Ethanol Metals Petroleum coke Owns tankers Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields. It owns interests in/or operates oil fields, gasoline processing plants, and a natural gas pipeline system in West Texas. It owns and operates about 83,000 miles of pipelines and 144 terminals.
UBS has a Buy rating on the shares, with a $38 target price.
PepsiCo This top consumer staples stock reported surprisingly solid second-quarter earnings and will continue supplying goods for upcoming football tailgates and parties. PepsiCo (NASDAQ: PEP) is a global food and beverage company that pays a notable 4.09% dividend yield. The company’s low volatility (beta of 0.375) makes it a steady, defensive holding, which makes it a perfect holding while waiting for a comeback.
Its Frito-Lay North America segment offers:
Lays and Ruffles potato chips Doritos, Tostitos, and Santitas tortilla chips Cheetos cheese-flavored snacks, branded dips Fritos corn chips The company’s Quaker Foods North America segment provides:
Quaker Oatmeal Grits Rice cakes Natural granola and oat squares Pearl Milling mixes and syrups Quaker Chewy granola bars Cap’n Crunch cereal Life cereal Rice-A-Roni side dishes PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
Pepsi Gatorade Mountain Dew Diet Pepsi Aquafina Diet Mountain Dew Tropicana Pure Premium Sierra Mist Mug VICI Properties VICI Properties (NYSE: VICI) is a New York City-based real estate investment trust that specializes in casino and entertainment properties. It offers a stellar dividend yield of 6.83% and is one of Wall Street’s top picks in the net lease group. It is ideal for more conservative investors seeking gaming exposure and a substantial dividend. The stock is frequently flagged, alongside other stocks in this post, in dividend screens as a “safer” S&P 500 dividend dog with an attractive yield backed by long-term triple-net leases.
VICI Properties has one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:
Caesars Palace Las Vegas MGM Grand The Venetian Resort Las Vegas VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms, as well as over 500 restaurants, bars, nightclubs, and sportsbooks. Gaming revenue has proven remarkably resilient in recent downturns, and its triple-net lease structure means it collects rent regardless of swings in tenant profitability.
VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:
Bowlero Cabot Canyon Ranch Chelsea Piers Great Wolf Resorts Homefield Kalahari Resorts VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
Barclays has an Overweight rating with a $31 price objective.
Contact [email protected] for any questions or corrections.
Benjamin Edwards Inc. lifted its position in shares of Kinder Morgan, Inc. (NYSE:KMI – Free Report) by 24.5% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 647,520 shares of the pipeline company’s stock after buying an additional 127,278 shares during the period. Benjamin Edwards Inc.’s holdings in Kinder Morgan were worth $20,701,000 as of its most recent SEC filing.
Other hedge funds also recently bought and sold shares of the company. Brighton Jones LLC purchased a new position in Kinder Morgan in the 4th quarter worth approximately $308,000. Schnieders Capital Management LLC. raised its holdings in Kinder Morgan by 11.4% during the 2nd quarter. Schnieders Capital Management LLC. now owns 69,444 shares of the pipeline company’s stock valued at $2,042,000 after buying an additional 7,081 shares during the last quarter. NewEdge Advisors LLC boosted its position in Kinder Morgan by 2.1% during the 2nd quarter. NewEdge Advisors LLC now owns 270,876 shares of the pipeline company’s stock valued at $7,964,000 after buying an additional 5,586 shares during the period. Nebula Research & Development LLC bought a new stake in Kinder Morgan in the 2nd quarter worth $1,168,000. Finally, Sei Investments Co. grew its holdings in Kinder Morgan by 20.4% in the 2nd quarter. Sei Investments Co. now owns 861,465 shares of the pipeline company’s stock worth $25,328,000 after acquiring an additional 145,806 shares during the last quarter. Institutional investors own 62.52% of the company’s stock.
Insider Transactions at Kinder Morgan
In other news, VP John W. Schlosser sold 6,166 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $31.90, for a total transaction of $196,695.40. Following the sale, the vice president owned 164,208 shares in the company, valued at $5,238,235.20. This represents a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael P. Garthwaite sold 1,550 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $31.44, for a total transaction of $48,732.00. Following the sale, the vice president directly owned 41,743 shares of the company’s stock, valued at $1,312,399.92. This trade represents a 3.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 15,432 shares of company stock valued at $493,849. 12.72% of the stock is owned by company insiders.
Kinder Morgan Stock Performance
Kinder Morgan stock opened at $32.83 on Friday. Kinder Morgan, Inc. has a twelve month low of $25.60 and a twelve month high of $34.81. The company has a quick ratio of 0.36, a current ratio of 0.46 and a debt-to-equity ratio of 0.91. The company has a market capitalization of $73.09 billion, a P/E ratio of 21.04, a PEG ratio of 2.58 and a beta of 0.54. The stock’s 50 day moving average is $31.99 and its 200 day moving average is $32.24.
Kinder Morgan (NYSE:KMI – Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The pipeline company reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.06. Kinder Morgan had a return on equity of 10.46% and a net margin of 19.31%.The business had revenue of $4.48 billion during the quarter, compared to analysts’ expectations of $4.22 billion. During the same quarter in the previous year, the business earned $0.28 earnings per share. The firm’s quarterly revenue was up 10.8% compared to the same quarter last year. Kinder Morgan has set its FY 2026 guidance at 1.360-1.360 EPS. On average, equities research analysts predict that Kinder Morgan, Inc. will post 1.55 earnings per share for the current fiscal year.
Kinder Morgan Dividend Announcement
The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Monday, August 3rd will be given a dividend of $0.2975 per share. This represents a $1.19 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Monday, August 3rd. Kinder Morgan’s dividend payout ratio is 76.28%.
Analysts Set New Price Targets
Several equities analysts have recently commented on the stock. Weiss Ratings downgraded shares of Kinder Morgan from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Tuesday, June 23rd. Morgan Stanley set a $38.00 price target on Kinder Morgan in a research report on Wednesday, July 29th. Zacks Research lowered Kinder Morgan from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Citigroup restated a “neutral” rating on shares of Kinder Morgan in a report on Wednesday, July 29th. Finally, UBS Group reiterated a “buy” rating and issued a $43.00 price target on shares of Kinder Morgan in a report on Monday, June 15th. Eight analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $35.50.
Read Our Latest Research Report on KMI
Kinder Morgan Company Profile
(Free Report)
Kinder Morgan (NYSE: KMI) is a large energy infrastructure company that owns and operates an extensive network of pipelines and terminals across North America. Its core activities center on the transportation, storage and handling of energy products, including natural gas, natural gas liquids (NGLs), crude oil, refined petroleum products and carbon dioxide. The company’s assets include long-haul and gathering pipelines, storage facilities, and multi-modal terminals that serve producers, refiners, utilities and industrial customers.
Kinder Morgan’s operations deliver midstream services such as pipeline transportation, terminaling, storage and related logistics and maintenance.
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ABN Amro Investment Solutions grew its holdings in Kinder Morgan, Inc. (NYSE:KMI – Free Report) by 52.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 188,104 shares of the pipeline company’s stock after buying an additional 65,005 shares during the period. ABN Amro Investment Solutions’ holdings in Kinder Morgan were worth $6,014,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. Norges Bank acquired a new position in shares of Kinder Morgan during the 4th quarter worth approximately $1,132,125,000. AQR Capital Management LLC boosted its position in Kinder Morgan by 431.9% during the third quarter. AQR Capital Management LLC now owns 6,569,082 shares of the pipeline company’s stock worth $185,971,000 after purchasing an additional 5,333,986 shares during the period. Merewether Investment Management LP bought a new position in Kinder Morgan during the second quarter worth $138,477,000. Zimmer Partners LP increased its holdings in shares of Kinder Morgan by 177.8% in the third quarter. Zimmer Partners LP now owns 6,070,100 shares of the pipeline company’s stock valued at $171,845,000 after purchasing an additional 3,885,000 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. acquired a new position in shares of Kinder Morgan in the fourth quarter valued at $85,364,000. 62.52% of the stock is currently owned by institutional investors.
Insiders Place Their Bets
In other news, VP John W. Schlosser sold 6,166 shares of Kinder Morgan stock in a transaction on Monday, July 6th. The stock was sold at an average price of $31.90, for a total value of $196,695.40. Following the transaction, the vice president owned 164,208 shares in the company, valued at approximately $5,238,235.20. This trade represents a 3.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Michael P. Garthwaite sold 1,550 shares of the business’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $31.44, for a total value of $48,732.00. Following the transaction, the vice president directly owned 41,743 shares of the company’s stock, valued at $1,312,399.92. This trade represents a 3.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 15,432 shares of company stock worth $493,849. Company insiders own 12.72% of the company’s stock.
Kinder Morgan Price Performance
KMI stock opened at $32.14 on Friday. The company has a quick ratio of 0.36, a current ratio of 0.46 and a debt-to-equity ratio of 0.91. Kinder Morgan, Inc. has a 12 month low of $25.60 and a 12 month high of $34.81. The firm has a market cap of $71.57 billion, a P/E ratio of 20.60, a P/E/G ratio of 2.57 and a beta of 0.54. The company’s 50-day moving average price is $31.97 and its two-hundred day moving average price is $32.23.
Kinder Morgan (NYSE:KMI – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The pipeline company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.31 by $0.06. The company had revenue of $4.48 billion during the quarter, compared to the consensus estimate of $4.22 billion. Kinder Morgan had a net margin of 19.31% and a return on equity of 10.46%. The firm’s quarterly revenue was up 10.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.28 EPS. Kinder Morgan has set its FY 2026 guidance at 1.360-1.360 EPS. On average, analysts anticipate that Kinder Morgan, Inc. will post 1.54 earnings per share for the current fiscal year.
Kinder Morgan Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Monday, August 3rd will be issued a $0.2975 dividend. This represents a $1.19 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Monday, August 3rd. Kinder Morgan’s dividend payout ratio (DPR) is currently 76.28%.
Analysts Set New Price Targets
KMI has been the subject of a number of research reports. Wolfe Research cut shares of Kinder Morgan from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, April 21st. UBS Group reiterated a “buy” rating and issued a $43.00 price target on shares of Kinder Morgan in a research note on Monday, June 15th. Morgan Stanley set a $38.00 price target on shares of Kinder Morgan in a report on Wednesday, July 29th. Jefferies Financial Group restated a “hold” rating on shares of Kinder Morgan in a research report on Thursday, July 23rd. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Kinder Morgan in a report on Wednesday, June 10th. Eight investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $35.50.
Check Out Our Latest Stock Analysis on Kinder Morgan
Kinder Morgan Profile
(Free Report)
Kinder Morgan (NYSE: KMI) is a large energy infrastructure company that owns and operates an extensive network of pipelines and terminals across North America. Its core activities center on the transportation, storage and handling of energy products, including natural gas, natural gas liquids (NGLs), crude oil, refined petroleum products and carbon dioxide. The company’s assets include long-haul and gathering pipelines, storage facilities, and multi-modal terminals that serve producers, refiners, utilities and industrial customers.
Kinder Morgan’s operations deliver midstream services such as pipeline transportation, terminaling, storage and related logistics and maintenance.
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Key Takeaways Phillips 66 moves ahead with a $5B pipeline project linking refining and marketing operations.Western Gateway will span 1,300 miles with daily capacity of 230,000 barrels.Primarily 10-year take-or-pay contracts are expected to enhance cash-flow visibility for Phillips 66. Phillips 66 (PSX - Free Report) is taking a significant step to strengthen its integrated business model by moving forward with the proposed Western Gateway Pipeline alongside Kinder Morgan, Inc. (KMI - Free Report) and HF Sinclair Corporation (DINO - Free Report) . The partners have made a final investment decision on the approximately $5 billion Western Gateway Pipeline project, with PSX, KMI, DINO holding a 49.9%, 35.1% and 15% stakes, respectively.
For Phillips 66, the project is strategically important because it will create a new refined-products supply route linking the company's Central Corridor and Gulf Coast refining assets with its marketing operations on the West Coast and in the Southwest.
Western Gateway Expands PSX's Market ReachWestern Gateway is expected to span approximately 1,300 miles and have an initial design capacity of 230,000 barrels per day. About 900 miles of new pipeline will connect Borger, TX, with Phoenix, AZ, while KMI will contribute its existing SFPP East and West Line assets. PSX will construct and operate the new-build pipeline, giving PSX a greater role in the infrastructure supporting the movement of its refined products.
The project is also designed for future expansion with limited additional capital and without requiring new pipe, allowing PSX to benefit from rising fuel demand without committing substantial additional investment. This flexibility could improve the company's ability to serve growing markets while strengthening its refining-to-marketing value chain.
Long-Term Contracts Support Phillips 66's Cash FlowA key investment benefit is the project's primarily 10-year, take-or-pay contracts, which should provide greater visibility into future volumes and cash flows once the system enters service. PSX expects to contribute approximately $2.5 billion in cash, while DINO will invest $750 million and KMI approximately $250 million, in addition to KMI’s contribution to existing assets valued at about $1.5 billion.
Sharing the capital burden with KMI and DINO allows PSX to pursue a large-scale infrastructure opportunity while diversifying its investment exposure. The pipeline is expected to improve supply reliability and potentially reduce transportation costs for customers across the Western United States, strengthening PSX's competitive position.
Pipeline Project Enhances PSX's Competitive PositionFor PSX, Western Gateway could provide benefits beyond the direct earnings contribution from the pipeline. The project is expected to enhance market access for PSX's refineries, improve logistics flexibility and create a more efficient connection between its refining and marketing assets.
The long-term contracted structure is expected to support stable cash generation, while scalable capacity could create further growth opportunities. KMI and DINO bring established infrastructure and refining expertise to the venture, helping distribute project execution responsibilities and risk.
Western Gateway Offers Long-Term Value for Phillips 66Targeted for completion in 2029, Western Gateway is a long-term growth investment rather than an immediate earnings catalyst. However, its combination of contracted volumes, strategic market access, scalable capacity and PSX's integrated operating model could strengthen the company's business model and boost cash-flow generation.
The project represents another opportunity for PSX to leverage its refining and marketing footprint, enhance investor appeal and build durable infrastructure-linked earnings, while potentially enhancing long-term shareholder value.
PSX’s Zacks Rank & Key PicksPhillips 66 currently carries a Zacks Rank #3 (Hold).
Another better-ranked refiner in the energy sector is Valero Energy Corporation (VLO - Free Report) .Valero and Kinder Morgan currently carry a Zacks Rank #2 (Buy) each and HF Sinclair sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Valero operates 14 global refineries with a daily refinery throughput capacity of 3 million barrels. The refiner’s ethanol operations are spread across 12 U.S. ethanol plants. During the second quarter of 2026, VLO recorded strong gains in its ethanol sector. Margins expanded to $1.15 per gallon from 52 cents per gallon and operating income rose to 75 cents per gallon compared with 13 cents per gallon a year earlier.
Kinder Morgan (KMI +0.00%), Phillips 66 (PSX -0.77%), and HF Sinclair (DINO +0.99%) just finalized a joint venture (JV) and made a final investment decision to build the Western Gateway Pipeline System. Valued at $5 billion, the 1,300-mile Western Gateway system will move refined petroleum products from refineries in the central U.S. and Gulf Coast regions to West Coast and Southwest markets.
Kinder Morgan will own 35.1% of the system, backed by long-term contracts that will generate steady cash flow. This project should give the pipeline stock more fuel to grow its 3.8%-yielding dividend.
Image source: Getty Images.
A win-win-win partnership Kinder Morgan, Phillips 66, and HF Sinclair are teaming up to build a new pipeline system to enhance fuel supply reliability to Western U.S. markets. Kinder Morgan will contribute its existing SFPP East Line pipeline from El Paso, Texas, to Phoenix, Arizona, and its SFPP West Line pipeline from Colton, California, to Phoenix, which it will reverse to move refined products east to west into California. In addition to contributing these pipelines (valued at $1.5 billion), Kinder Morgan will contribute $250 million to the JV.
Phillips 66, which will own 49.9% of the JV, will build a new 900-mile pipeline from Borger, Texas, to Phoenix. The refining and midstream giant will contribute $2.5 billion in cash to the JV. Finally, HF Sinclar will contribute $750 million to the JV.
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The companies expect to complete Western Gateway in 2029. The pipeline will initially have a capacity of 230,000 barrels per day and can be expanded in the future without the need for additional pipe.
Stable cash flows to support the dividend Underpinning Western Gateway are primarily 10-year, take-or-pay contracts. This contract structure means Kinder Morgan and its JV partners get paid regardless of whether customers ship volumes on the pipeline. As a result, it will provide the company with very durable cash flows, which is ideal for supporting its dividend. Take-or-pay contracts currently provide 65% of its cash flow, with most of the rest coming from steady fee-based sources (26%) or commodity price hedges (5%).
In commenting on its investment in the announcement press release, CEO Kim Dang noted that the company expects to "earn attractive returns on our investment based on the incremental project earnings above those of our contributed assets." That implies it will generate incremental, highly visible cash flows to bolster its already stable cash flow base from a relatively modest additional investment ($250 million).
The incremental stable cash flows of Western Gateway should support Kinder Morgan's ability to continue growing its dividend in 2029 and beyond. The company has increased its high-yielding payout for nine straight years. Kinder Morgan has significant visible growth ahead, with $9.6 billion in growth capital projects in its backlog at the end of the second quarter, with expected in-service dates through mid-2030. Most of those projects are gas pipelines ($8.8 billion), so Western Gateway will provide some additional diversification to its growth profile.
Adding to the dividend's long-term appeal Kinder Morgan is layering in another long-term growth driver by sealing a deal to participate in the massive Western Gateway project. It will provide another incremental source of stable cash flows for the pipeline giant. That will support its ability to continue growing its high-yielding dividend, enhancing its appeal to income-seeking investors.
Phillips 66 (NYSE: PSX), Kinder Morgan, Inc. (NYSE: KMI) and HF Sinclair Corporation (NYSE and NYSE Texas, Inc.: DINO) today announced they have finalized a joi
HOUSTON--(BUSINESS WIRE)--Phillips 66, Kinder Morgan, and HF Sinclair today announced a final investment decision to move forward with the Western Gateway Pipeline system.
HF Sinclair Corp logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesAug 11 (Reuters) - Phillips 66 (PSX.N), opens new tab, Kinder Morgan (KMI.N), opens new tab and HF Sinclair (DINO.N), opens new tab said on Tuesday they have decided to proceed with the proposed $5 billion Western Gateway Pipeline system and finalized a joint venture agreement for the same.
Phillips 66 will own 49.9% of the venture, Kinder Morgan 35.1% and HF Sinclair 15%.
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Companies have been racing to build a major new fuel pipeline to the U.S. West Coast ahead of planned refinery closures in California, a relatively isolated fuel market with limited links to major refining hubs that leave it vulnerable to supply disruptions and price spikes.
Western Gateway is a proposed 1,300-mile refined products pipeline system with a design capacity of 230,000 barrels per day that would establish a new fuel supply route from St. Louis, Missouri and Gulf Coast origin points to Arizona and California.
Phillips 66's Gold Pipeline, which currently runs from Borger, Texas to St. Louis, will be reversed to supply the proposed east-to-west system, as will Kinder Morgan's existing pipeline between Colton, California and Phoenix, Arizona.
Meanwhile, after the completion of a new pipeline from Borger to Phoenix, Kinder Morgan's existing SFPP East Line and West Line assets will be contributed to the joint venture at a value of about $1.5 billion, the companies said.
Phillips 66 will contribute nearly $2.5 billion in cash for the project — which has an estimated enterprise value of $5 billion — while Kinder Morgan will contribute about $250 million and HF Sinclair about $750 million.
The new system would be underpinned by primarily 10-year, take-or-pay contracts, they added.
Reporting by Pooja Menon in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Key Takeaways KMI's fee-based network supports stable cash flows, a 3.8% yield and a possible ninth straight raise.Chevron's integrated model and disciplined spending support a 3.8% yield and 90 years of payouts.CNQ's long-life assets, strong balance sheet and 26 straight dividend hikes support its 4% yield. Energy stocks have long been favored by income-focused investors, but their appeal becomes even stronger during periods of market uncertainty. With crude prices swinging on geopolitical developments and supply concerns, financially strong energy companies that consistently pay dividends can offer a measure of stability while allowing investors to participate in the sector’s long-term growth potential.
Among large-cap energy names, Kinder Morgan (KMI - Free Report) , Chevron (CVX - Free Report) and Canadian Natural Resources (CNQ - Free Report) stand out for their scale, diversified operations and long-standing commitment to returning cash to shareholders. Their resilient business models, strong balance sheets and consistent dividend policies make them attractive choices for investors seeking dependable income alongside exposure to the sector.
Oil Market Remains Driven by Geopolitical UncertaintyThe oil market continues to be shaped by geopolitical developments, particularly around the Strait of Hormuz, one of the world's most important energy shipping routes. Brent crude has hovered around the $80-a-barrel mark in recent sessions, with prices swinging as investors weigh hopes of easing tensions against the risk of renewed disruptions to Middle East oil flows.
At the same time, supply risks have not disappeared. Attacks on oil tankers in key shipping lanes, disruptions to export routes and fluctuating U.S. crude inventories have kept investors cautious. U.S. benchmark WTI crude has traded in the mid-$70s, reflecting the market's tug-of-war between improving diplomatic prospects and lingering concerns over global supply. The result has been continued price volatility, reinforcing the uncertain backdrop for energy investors.
Why Large-Cap Dividend Energy Stocks MatterIn such an uncertain environment, large-cap dividend-paying energy companies can provide investors with a valuable combination of income and resilience. Their diversified operations, financial strength and disciplined capital allocation often allow them to continue rewarding shareholders even when commodity prices fluctuate.
Regular dividends also help cushion returns during periods of market volatility, making these companies appealing to investors looking for both stability and long-term value. For those seeking exposure to the energy sector without relying solely on higher oil prices, established dividend payers can represent a more balanced investment approach.
3 Established Energy Stocks Built for ResilienceFor investors seeking energy exposure without assuming excessive risk, Kinder Morgan, Chevron and Canadian Natural Resources offer a mix of scale, financial strength and dependable shareholder returns. Chevron benefits from its integrated operations, solid balance sheet and long history of returning capital to investors. Kinder Morgan generates relatively stable, fee-based cash flows from its extensive pipeline and infrastructure network, reducing its sensitivity to short-term commodity price movements.
Canadian Natural Resources adds exposure to a large, long-life asset base, supported by disciplined spending and a consistent focus on shareholder returns. With oil prices still volatile and supply risks elevated, these companies may offer a steadier way to participate in the energy sector.
Dividend Yield Comparison Image Source: Zacks Investment Research
Kinder Morgan: Kinder Morgan oversees one of North America’s largest energy infrastructure networks, including 78,000 miles of pipelines and extensive storage capacity. Its take-or-pay agreements across natural gas, refined products, crude oil, and bulk terminals provide stable, contracted cash flows, largely insulated from commodity price volatility.
The company carries a Zacks Rank #2 (Buy). It expects a dividend increase in 2026, which would mark its ninth consecutive annual raise. Its current payout of 29.75 cents per quarter results in a 3.8% yield. With demand for natural gas and LNG infrastructure rising, Kinder Morgan’s asset base positions it well for continued cash flow durability.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron: Chevron’s global integrated model spans exploration, production, refining and chemicals, creating stability across market cycles. With operations in the United States, Asia-Pacific, Africa, the Middle East and South America, the company’s scale and diversity support consistent free cash flow generation.
Chevron has maintained or raised its dividend for 90 years, underscoring a long track record of resilience. Its 3.8% yield stands above both the sector and the S&P 500’s 1% average, and its Zacks Rank #3 (Hold) reflects a steady near-term earnings outlook. A disciplined approach to capital spending and efficiency continues to strengthen its ability to sustain attractive payouts.
Canadian Natural Resources: Canadian Natural Resources operates one of the industry’s strongest long-life, low-decline asset bases, generating reliable production across a diverse mix that includes light and heavy oil, bitumen, synthetic crude and natural gas. Its portfolio spans Western Canada, the North Sea, and offshore West Africa, creating geographic balance and flexibility.
The company has increased its dividend for 26 consecutive years, supported by operational efficiency and consistent earnings performance reflected in its Zacks Rank #3. Its current quarterly dividend of 62.50 Canadian cents equates to a 4.1% yield, well above the Zacks Oil/Energy sector average of 2.7%. A strong balance sheet and efficient capital deployment reinforce the sustainability of its shareholder returns.
Today’s article updates one of our most popular charts, which shows the makeup of the North American midstream universe by market cap with total company count. While the universe has changed significantly since 2013, company count has seemingly stabilized in recent years. Interestingly, the total midstream market cap reached a new high watermark at the end of 2025, eclipsing 2014, when there were more than twice as many companies. Today’s note discusses the key changes in the midstream universe and the implications for investors.
Key Takeaways At the end of 2025, U.S. C-Corps were the largest portion of the North American midstream market cap at 42%. U.S. C-Corps were followed by MLPs at 32% and Canadian C-Corps at 26%. The year-end 2025 total midstream market cap was just over $760 billion. This surpasses the past high from 2014, when there were twice as many companies in the universe. For investors, the choice is often maximizing yield by focusing on MLPs or prioritizing broad diversification with a total-return orientation. Investors may choose to own both types of strategies. The Midstream Universe Tilts Towards U.S. C-Corps The North American midstream universe encompasses MLPs and U.S. and Canadian corporations. Each is grouped by market cap in USD alongside total company count in the chart below. It is a helpful summary of how the midstream landscape has evolved over time, from being dominated by MLPs in 2013–2016 to now being biased toward U.S. corporations. Canadian C-Corps make up a greater percentage of the universe by market cap today than in the early years depicted, but they were a much larger piece of the universe in 2020 when they were more defensive than their U.S. peers.
At the end of 2025, U.S. C-Corps were the largest portion of the North American midstream market cap at 42%, followed by MLPs at 32%. Canadian C-Corps accounted for 26% of the universe by market cap. The total market cap was just above $760 billion.
Keep in mind that this chart has historically excluded Compression and Marketing and Distribution companies, which are also not in the Alerian Midstream Energy Index (AMNA). The chart includes a few small midstream names that are not AMNA constituents.
Notably, company count actually increased from 2024 to 2025 after nine straight years of declines. While EnLink and Aris Water Solutions were acquired during 2025, new companies came to market. Notably, Venture Global (VG) went public in January 2025. WaterBridge Infrastructure (WBI) IPO-ed in the U.S. in September, while Rockpoint Gas Storage (RGSI:TSE) debuted in Toronto in October. The new MLPs that have come to market in recent years have been upstream-focused and are not included in the chart above. Namely, those are TXO Partners (TXO) and Mach Natural Resources (MNR), which went public in 2023.
What Are the Implications for Investors? For midstream investors, the takeaway from this chart has not really changed that much in recent years, given a similar landscape and static product structures. As a reminder, any ETF, CEF, or mutual fund with more than 25% MLPs will be taxed as a corporation. Funds structured as Regulated Investment Companies (RICs) must limit their MLP exposure to 25% to maintain their pass-through status. MLPs typically offer higher yields than their C-Corp counterparts.
Prior to 2017, investors could get broad exposure to the midstream space and maximize their yield using MLP-focused products. Since then, investors have had to choose between focusing on MLPs to maximize yield or accessing midstream through an RIC to get broader diversification with more of a total-return orientation. The Alerian MLP Infrastructure Index (AMZI) is currently yielding 6.5%, while the broader Alerian Midstream Energy Select Index (AMEI), which caps MLPs at 25%, is yielding 4.5%. The ten-year average yield difference between these indexes has been 200 basis points.
Often, investors come to the midstream space for yield and will prefer an MLP exposure. That said, we also see investors deciding to own both an MLP-focused product and an RIC product to meet their income needs and get broader diversification to the space. With only up to 25% MLP exposure in RICs, the overlap with an MLP-focused approach is limited. Additionally, given the broad tailwinds for North American natural gas demand, some investors are preferring RICs to better play that theme. For context, companies primarily focused on natural gas infrastructure represent 70.7% of AMEI. Long-haul natural gas pipelines are more commonly owned by C-Corps like Kinder Morgan (KMI) and Williams (WMB).
Finally, a greater number of corporations in the U.S. and Canada has made it possible to create indexes focused solely on C-Corps. The Alerian Midstream Energy Corporation Index (AMCC) launched in 2019, and a similar dividend-weighted version, the Alerian Midstream Energy Corporation Dividend Index (AMCCD), underlies an UCITS ETF in Europe.
Bottom Line The makeup of the North American midstream universe has been more stable in recent years, with muted changes in company count. That said, investors should understand how the universe impacts the available products in this space and what type of products can best meet their needs.
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AMZI is the underlying index for the Alerian MLP ETF (AMLP) and the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB). AMEI is the underlying index for the Alerian Energy Infrastructure ETF (ENFR) and the Alerian Energy Infrastructure Portfolio (ALEFX). AMCCD is the underlying index for the Alerian Midstream Energy Dividend UCITS ETF (MMLP.LN).
Related Research: How Consolidation Has Changed the Midstream Landscape
Why Investors Should Care About Midstream Classifications
Midstream: Robust Gas Backlogs Drive Growth Visibility
Why Most ‘MLP ETFs’ Own Less Than 25% MLPs
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP, MLPB, ENFR, ALEFX, and MMLP.LN, for which it receives an index licensing fee. However, AMLP, MLPB, ENFR, ALEFX, and MMLP.LN are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP, MLPB, ENFR, ALEFX, and MMLP.LN.
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Disposed of 5,695 shares for an estimated value of ~$184k at a weighted average price of $32.36 on July 16, 2026 and July 18, 2026. The transaction represented a 10% reduction in direct equity holdings.
Kinder Morgan (KMI - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this oil and natural gas pipeline and storage company have returned -1.6% over the past month versus the Zacks S&P 500 composite's +1.7% change. The Zacks Oil and Gas - Production and Pipelines industry, to which Kinder Morgan belongs, has lost 2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Kinder Morgan is expected to post earnings of $0.32 per share, indicating a change of +10.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.5 points to a change of +15.4% from the prior year. Over the last 30 days, this estimate has changed +2.5%.
For the next fiscal year, the consensus earnings estimate of $1.52 indicates a change of +1.2% from what Kinder Morgan is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Kinder Morgan.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Kinder Morgan, the consensus sales estimate for the current quarter of $4.47 billion indicates a year-over-year change of +7.9%. For the current and next fiscal years, $18.33 billion and $19.16 billion estimates indicate +8.2% and +4.5% changes, respectively.
Last Reported Results and Surprise HistoryKinder Morgan reported revenues of $4.48 billion in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $0.37 for the same period compares with $0.28 a year ago.
Compared to the Zacks Consensus Estimate of $4.29 billion, the reported revenues represent a surprise of +4.33%. The EPS surprise was +19.35%.
Over the last four quarters, Kinder Morgan surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Kinder Morgan is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinder Morgan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Kinder Morgan's $9.6 billion backlog is 92% tied to natural gas infrastructure projects.Kinder Morgan is expanding pipeline capacity to meet rising power generation, LNG and data center demand.Kinder Morgan eyes more than $10 billion of additional project opportunities beyond its existing backlog. Kinder Morgan, Inc. (KMI - Free Report) is entering a growth phase shaped by electricity demand, liquefied natural gas development and utility needs rather than a simple commodity-price upswing.
The company’s opportunity centers on contracted infrastructure. Long-term agreements remain the bridge between supply basins and demand centers that need reliable natural gas transportation and storage.
KMI Gains From Power and Utility DemandKinder Morgan’s project backlog stood at $9.6 billion at the end of the second quarter of 2026. Natural gas projects accounted for about 92% of that backlog, keeping the company’s growth agenda focused on its largest infrastructure franchise.
More than 60% of the backlog supports power generation and local distribution company demand. That mix gives KMI a longer-duration channel tied to electric reliability, population growth and the need for additional gas-fired generation.
KMI’s theme overlaps with other midstream names. The Williams Companies, Inc. (WMB - Free Report) offers investors another way to evaluate natural gas infrastructure exposure, while ONEOK, Inc. (OKE - Free Report) brings a broader midstream mix that includes natural gas liquids, gas gathering and processing, pipelines and refined products.
Kinder Morgan Targets Data Center GrowthThe Amarillo Expansion shows how digital infrastructure is becoming part of the gas-transportation story. Natural Gas Pipeline Company of America is developing the project to serve Texas Panhandle demand, including additional data center development.
The project is expected to provide up to about 550,000 dekatherms per day of incremental firm transportation capacity. All capacity is fully subscribed under a long-term contract, and the approximately $200 million project carries a Kinder Morgan share of about $75 million.
KMI Builds Capacity for LNG ExpansionKinder Morgan is also developing projects to serve roughly 3 billion cubic feet per day of additional liquefied natural gas demand. That opportunity sits beside more than 10 billion cubic feet per day of power-sector demand under development across its gas pipeline network.
The company’s Gulf Coast position matters because export-related demand requires both pipeline takeaway and storage flexibility. As liquefied natural gas capacity expands, KMI’s links to supply basins may help turn demand growth into contracted transportation projects.
Kinder Morgan Sees a Large Project FunnelKMI’s opportunity set exceeds $10 billion beyond projects already sanctioned. Management said it expects significant additions before year-end, likely more than offsetting about $1 billion of projects expected to enter service during the second half of 2026.
This prospective funnel is separate from the existing backlog. Projects still need commercial support, and management’s process remains contract-driven, with final investment decisions tied to agreements that support acceptable returns.
KMI Faces a Capital-Intensive Growth CycleHigh demand on Kinder Morgan’s gas systems is a favorable signal, but it also changes the growth equation. When assets are already highly utilized, future volume growth increasingly depends on new construction instead of simply filling unused capacity.
That raises execution risk. The company has discussed more than $3 billion of annual expansion capital spending based on the current backlog, while large projects still face permitting, regulatory, cost-control and timing risks.
Kinder Morgan’s Earnings Outlook and Estimate TrendsKinder Morgan’s earnings outlook is tied to a multi-year growth cycle, with consensus EPS expected to rise from 83 cents in 2026 to $1.33 in 2027. While the current quarter estimate shows a year-over-year decline, estimates for second-quarter 2026 earnings, full-year 2026 earnings and full-year 2027 earnings point to improving earnings expectations as power, utility and LNG-related infrastructure demand builds.
Image Source: Zacks Investment Research
KMI’s Trend Exposure Remains ConcentratedThe bottom line is that power, liquefied natural gas and utility demand may create a multi-year infrastructure cycle for Kinder Morgan. The opportunity is meaningful because it is tied to contracted capacity, not just short-term changes in gas prices.
The concentration also matters. Natural gas projects dominate the backlog, and low-carbon exposure through renewable natural gas and related activities remains limited relative to the scale of the gas buildout.
KMI currently carries a Zacks Rank #3 (Hold). That rank fits a stock with visible upside drivers but enough uncertainty to keep the investment stance measured. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KMI has a Momentum Score of A, Value Score of C, Growth Score of C and VGM Score of C.
Its Momentum Score of A supports the idea that the stock has favorable near-term trading characteristics, while its Value Score of C, Growth Score of C and VGM Score of C point to a more neutral broader style profile.
The score mix fits the article’s main takeaway. KMI’s infrastructure-cycle thesis has stronger support from momentum than from standout value or growth signals, so investors may want to weigh the backlog opportunity against execution demands and concentrated gas exposure.
Kinder Morgan (KMI) delivered a strong Q2, exceeding internal and analyst expectations, prompting management to raise full-year guidance. KMI's cash flow is highly contracted, with 65% take-or-pay and 26% fee-based, supporting a robust project pipeline and dividend sustainability. Management expects adjusted EBITDA to be at least 5% above budget and EPS at least 12% above plan, with major project benefits materializing in 2029.
SummaryKinder Morgan (KMI) delivered record Q2 net income and adjusted EBITDA, raising full-year guidance above budgeted levels. KMI's fee-based, contract-backed business model offers stability, but current valuation—21.7x 2027 P/E and 11.6x EV/EBITDA—limits upside. Backlog conversion, project execution, and leverage management are key; shadow backlog and signed contracts could shift the investment case. I maintain a Hold rating: dividend yield is attractive, but growth and valuation do not justify a Buy at current levels. JHVEPhoto/iStock Editorial via Getty Images
Investment Thesis Kinder Morgan (NYSE:KMI) reported this week its earning, with a record second-quarter net income of $867 million and record second-quarter adjusted EBITDA of $2,199 million, up 12% from last year. Management raised the guidance for the
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For the quarter ended June 2026, Kinder Morgan (KMI - Free Report) reported revenue of $4.48 billion, up 10.8% over the same period last year. EPS came in at $0.37, compared to $0.28 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.29 billion, representing a surprise of +4.33%. The company delivered an EPS surprise of +19.36%, with the consensus EPS estimate being $0.31.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Kinder Morgan performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Realized weighted average oil price: $/73.78 versus the two-analyst average estimate of $/72.56.Realized weighted average NGL price: $/33.38 versus the two-analyst average estimate of $/35.64.Terminals - Liquids leasable capacity: 78.60 MMBBL versus the two-analyst average estimate of 78.65 MMBBL.NGL sales volumes - net: 9.8 millions of barrels of oil compared to the 9.73 millions of barrels of oil average estimate based on two analysts.CO2 sales volumes - net: 0.31 Bcf/D versus the two-analyst average estimate of 0.31 Bcf/D.Total oil production - net: 28.04 millions of barrels of oil versus 26.25 millions of barrels of oil estimated by two analysts on average.Terminals - Bulk transload tonnage: 12.90 MMTon versus 12.25 MMTon estimated by two analysts on average.Segment EBDA- Natural gas Pipelines: $1.52 billion versus $1.43 billion estimated by two analysts on average.Segment EBDA- Terminals: $310 million compared to the $293.64 million average estimate based on two analysts.Segment EBDA- Products Pipelines: $343 million versus $305.31 million estimated by two analysts on average.Segment EBDA- CO2: $226 million versus $189.27 million estimated by two analysts on average.View all Key Company Metrics for Kinder Morgan here>>>
Shares of Kinder Morgan have returned -0.7% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Kinder Morgan (KMI) delivered a record second quarter in 2026, posting financial results that once again exceeded internal budgets and prompted an upward revision to its full-year guidance. The midstream company continues to benefit from a robust energy infrastructure landscape, driven by surging U.S. natural gas demand, newly expanded pipeline infrastructure, and elevated liquefied natural gas (LNG) exports.
Key Takeaways Kinder Morgan delivered a record second quarter in 2026, reporting an adjusted EBITDA of $2.199 billion, representing a 12% year-over-year increase that beat consensus estimates and led to an upward revision of full-year guidance. The official project backlog stands at $9.6 billion, with 92% of that growth linked to the natural gas projects. Over 60% of these projects are specifically targeted at power generation and distribution demand, fueled in part by AI and data center energy requirements. The company maintained a strong balance sheet with a net debt-to-adjusted EBITDA ratio of 3.6x and declared a 2% year-over-year dividend increase. The midstream company reported an adjusted EBITDA of $2.199 billion, beating the consensus estimate of $2.081 billion and representing a 12% increase year-over-year. Following a strong first half of the year, management now projects full-year adjusted EBITDA to beat original 2026 budgets by more than 5%, or approximately $430 million.
Surging Natural Gas Demand Driving Backlog The company provided updates on its project backlog, now sitting at $9.6 billion. Kinder Morgan added $200 million in new project additions during the quarter. It placed approximately $660 million in expansion projects into services. The backlog, excluding $1.1 billion from CO2 enhanced oil recovery projects and gathering & processing projects, maintains a favorable project EBITDA multiple of 5.6x. Management noted that while the official backlog has hovered around $10 billion, there is still capacity to grow.
This growth is linked almost exclusively to the natural gas sector; such projects make up 92% of the current backlog. Moreover, more than 60% of the backlog is specifically geared toward supporting local distribution company demand and power generation, a segment increasingly driven by the energy requirements of AI and data centers. Management highlighted continued interest from customers in developing additional natural gas infrastructure.
The board provided contingent approval for almost $400 million in new projects that are not yet in the backlog. Kinder Morgan’s shadow backlog currently stands at over $10 billion. The company sanctioned around $2 billion in projects over the past 12 months, with management looking to add at least $1 billion in the back half of the year.
Update on Expansion Projects Kinder Morgan’s three largest natural gas expansion projects underway remain both on schedule and budget. The Mississippi Crossing and South System Expansion 4 received final FERC Environmental Impact statements in June. They are expected to receive FERC certificates by the end of the month. Additionally, Trident is now approximately 60% complete.
The company anticipates reaching a final investment decision (FID) on the Western Gateway system with Phillips 66 (PSX) in the next two months. The project aims to decrease dependence on global oil markets by providing a domestic supply of refined products to California and Arizona.
Disciplined Debt Management and Dividends Kinder Morgan declared a cash dividend of $0.2975 per share, representing a 2% increase from the same period last year. The company achieved a record second quarter net income of $867 million. This strong financial execution generated $2 billion in cash flow from operations and $1 billion in free cash flow after capital expenditures.
Despite continued growth in capital expenditures and the successful closing of the $500 million Monument pipeline acquisition during the quarter, management expects to hold net debt-to-adjusted EBITDA at 3.6x through the end of the year, sitting at the low end of its targeted range.
Investors can gain exposure to KMI in the Alerian Energy Infrastructure ETF (ENFR), weighted 5.0% as of July 21. ENFR tracks the Alerian Midstream Energy Select Index, a composite of North American midstream energy infrastructure companies. The fund recently crossed $500 million in assets on July 17, garnering $170 million in net assets from flows and price appreciation since January 1.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ENFR, for which it receives an index licensing fee. However, ENFR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ENFR.
Key Takeaways KMI topped Q2 2026 earnings and revenue estimates as natural gas transport and gathering volumes increased.Kinder Morgan raised its 2026 adjusted EBITDA and earnings outlook following broad-based segment strength.Kinder Morgan increased its quarterly dividend to 29.75 cents per share and improved leverage to 3.6X. Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents in the year-ago quarter.
Revenues increased 10.8% year over year to $4.48 billion from the prior year’s figure of $4.04 billion. Revenues surpassed the consensus estimate of $4.29 billion by 4.43%.
Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
KMI's Natural Gas Business Leads GrowthNatural Gas Pipelines adjusted segment earnings before depreciation, depletion and amortization (EBDA) expenses increased to $1.46 billion from $1.35 billion a year earlier. Higher contributions from the Texas Intrastate system and gathering assets supported the improvement.
Transportation volumes averaged 47,886 billion British thermal unit per day (BBtu/d) compared with 44,818 BBtu/d in the prior-year quarter. Growth reflected higher LNG deliveries on the Tennessee Gas Pipeline, stronger Texas Intrastate demand, higher export volumes to Mexico and increased power-generation demand in Arizona.
Gathering volumes advanced to 4,637 BBtu/d from 3,692 BBtu/d. KinderHawk volumes rose 54%, supported by increased Haynesville activity. Management noted that the system is effectively full and is adding 1 billion cubic feet per day of treating capacity.
Kinder Morgan's Other Segments AdvanceProducts Pipelines adjusted segment EBDA increased to $339 million from $289 million. Higher commodity prices and stronger butane blending volumes and rates more than offset weaker transportation activity.
Due to a temporary disruption of the West Coast supply and higher commodity prices, total refined product volumes declined 5% to 1.62 million barrels per day (MMBbl/d) from the year-ago figure of 1.71 MMBbl/d. Crude and condensate volumes fell 16% to 421,000 barrels per day (Bbl/d), largely because the Double H system was converted from crude oil to natural gas liquids service.
Terminals adjusted segment EBDA rose to $309 million from $300 million. Higher liquids terminal rates, ancillary fees and favorable commodity pricing supported results. Liquids utilization was 93%, while the Jones Act tanker fleet remained fully contracted for 2026.
CO2 adjusted segment EBDA increased to $207 million from $145 million. Total net oil production increased 10% to 28,040 Bbl/d, driven by a 15% rise in SACROC production. The realized weighted average oil price increased to $73.78 per barrel from $67.60, while the realized weighted average NGL price was $33.38 per barrel, higher than the $32.08 per barrel recorded a year earlier.
KMI's Cost Profile Supports Profit GrowthTotal operating costs, expenses and other expenditures increased 8.3% year over year to $3.13 billion. Costs of sales rose to $1.41 billion from $1.21 billion, while operations and maintenance expenses increased to $806 million from $773 million.
Operating income increased 16.8% to $1.35 billion. The operating margin expanded to 30.1% from 28.5%, reflecting revenue growth that outpaced increases in operating expenses.
Adjusted EBITDA reached a second-quarter record of $2.20 billion, up 12% year over year. Net income attributable to KMI increased 21% to $867 million, while reported earnings rose to 39 cents per share from 32 cents.
Kinder Morgan Expands Project PipelineThe project backlog stood at $9.6 billion at the end of the quarter, down from $10.1 billion sequentially after approximately $660 million of expansion projects entered service. Natural gas projects represented about 92% of the backlog.
The board also granted contingent approval to nearly $400 million of projects that will enter the backlog after contract execution. Management expects to sanction significant additional projects from an opportunity set exceeding $10 billion during the second half of 2026.
Kinder Morgan's Cash Flow & Balance SheetCash flow from operations was $1.96 billion in the quarter. Meanwhile, free cash flow was $978 million and free cash flow after dividends reached $313 million.
As of June 30, 2026, KMI reported $89 million in cash and cash equivalents. Net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.
KMI Raises 2026 OutlookKinder Morgan expects full-year adjusted earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) to exceed its original $8.6 billion budget by more than 5%. The company also expects adjusted earnings to surpass its initial $1.36-per-share budget by more than 12%.
The revised guidance reflects strong first-half performance across all business segments.
KMI’s Dividend GrowthThe quarterly dividend was raised 2% to 29.75 cents per share, equivalent to $1.19 per share annually. The dividend is payable Aug. 17, 2026, to shareholders of record as of Aug. 3.
KMI’s Zacks Rank & Stocks to ConsiderKinder Morgan currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector that have yet to release their second-quarter 2026 earnings are Cheniere Energy, Inc. (LNG - Free Report) , Venture Global, Inc. (VG - Free Report) and NOV Inc. (NOV - Free Report) . LNG sports a Zacks Rank #1 (Strong Buy), while NOV and VG carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Houston, TX-based Cheniere Energy is primarily engaged in the liquefied natural gas business. LNG owns and operates major liquefaction and export facilities on the U.S. Gulf Coast, including the Sabine Pass and Corpus Christi terminals.The company is involved in liquefied natural gas and natural gas marketing. With growing demand for cleaner energy, LNG is well-positioned to meet this need through its liquefaction and export facilities. Cheniere Energy is scheduled to release second-quarter 2026 earnings on Aug. 6, 2026.
Venture Global is one of the largest cost-efficient liquefied natural gas exporters in the United States, operating major production facilities along the U.S. Gulf Coast. VG distinguishes itself through a highly efficient, modular construction approach, which enables faster project delivery and massive volumes of reliable natural gas. This innovative strategy allows the company to rapidly scale and meet the world's rising demand for cleaner energy. Venture Global is scheduled to release second-quarter 2026 earnings on Aug. 11, 2026.
Houston, TX-based NOV is a global leader in the design, manufacture and sale of advanced equipment and components used in the oil and gas drilling, production, and renewable energy sectors. By leveraging its extensive proprietary technology portfolio, the company is well-positioned to reduce marginal costs and capitalize on the growing demand for oil and gas in the coming years. NOV is scheduled to release second-quarter 2026 earnings on July 28, 2026.
Key Takeaways KMI expects 2026 adjusted EBITDA over 5% above budget and adjusted EPS over 12% above plan.Natural gas projects make up 92% of KMI's $9.6 billion backlog, with additions expected to outpace burn.KMI has room to fund more projects, with each 0.1 turn of leverage adding about $850 million of capacity. Kinder Morgan, Inc. (KMI - Free Report) used its second-quarter 2026 earnings call to make a forward-looking case centered less on the quarter’s beat and more on the scale of natural gas infrastructure demand ahead.
Management’s message was that rising liquefied natural gas (“LNG”) exports, power demand and data center-related load growth are expanding the company’s project runway while leaving balance sheet flexibility intact.
KMI Raises the Bar for 2026Chief executive officer Kimberly Dang said Kinder Morgan outperformed both last year and its internal budget in the first half, prompting a higher outlook for 2026. The company now expects full-year adjusted EBITDA to finish more than 5% above budget and adjusted EPS to land more than 12% above its original plan.
That updated stance followed adjusted EPS of $0.37, up 32% year over year and above the Zacks Consensus Estimate of $0.31. Revenues rose to $4.48 billion from $4.04 billion and topped the Zacks Consensus Estimate of $4.29 billion.
Chief financial officer David Michels added that second-quarter adjusted EBITDA climbed 12% to $2.199 billion, while net debt to adjusted EBITDA ended the quarter at 3.6 times, below the company’s 3.8 times budget and at the low end of its target range.
Kinder Morgan Sees Demand Outrunning Backlog BurnExecutive chairman Richard Kinder framed the broader story around natural gas demand growth and the need for new midstream infrastructure backed by long-term contracts. He said the company expects to make final investment decisions on substantial additional projects during the rest of 2026.
Dang said the backlog slipped to $9.6 billion from roughly $10.1 billion because Kinder Morgan placed more than $650 million of projects into service, but she also noted nearly $400 million of projects have contingent board approval and are close to contract execution.
She also pointed to an opportunity set above $10 billion and said management expects project additions in the second half to more than offset roughly $1 billion scheduled to enter service in that period. Natural gas projects account for about 92% of the existing backlog.
KMI Leans Into Power and LNG Build-OutPresident Dax Sanders said natural gas transport volumes increased 7% in the quarter, supported by LNG deliveries on Tennessee Gas Pipeline, higher intrastate demand, stronger power demand on El Paso and greater exports to Mexico. Gathering volumes rose 26%, with KinderHawk in the Haynesville up 54%.
Management repeatedly tied future expansion to power generation and LNG. Sanders said Kinder Morgan is developing projects tied to more than 10 Bcf per day of gas demand in power and about 3 Bcf per day in LNG.
Dang also highlighted Wood Mackenzie’s outlook for U.S. gas demand to exceed 160 Bcf per day by 2035, with growth driven mainly by LNG exports and electricity demand. Her emphasis suggested KMI sees structural, not temporary, support for its core franchise.
Kinder Morgan Q&A Focuses on CapEx CapacityA Wells Fargo analyst pressed management on whether Kinder Morgan may need to move beyond its usual roughly $3 billion annual growth capital pace if power-related opportunities keep expanding. Dang answered that the current backlog already drives leverage lower over time and that the company has room to fund incremental spending while staying within its leverage framework.
She quantified that flexibility by saying each 0.1 turn of leverage represents about $850 million of capacity, implying meaningful room to fund more projects before reaching 4 times debt to EBITDA.
That exchange mattered because it showed management is not signaling capital restraint as the main bottleneck. The gating factor appears to be contract timing and customer commitments rather than balance sheet capacity.
KMI Uses Q&A to Sharpen Project TimelineAnalyst questions also drew out more detail on individual growth projects. On Western Gateway, Sanders said Kinder Morgan and Phillips 66 have made significant progress on agreements and could reach FID in the next month or two.
On Permian Link, Natural Gas Pipelines President Sital Mody said customer discussions are continuing and targeted the project for a 2030 in-service date, while stressing that contract support remains the key trigger for sanctioning.
Mody also described Tennessee’s Project 219 South as starting with a smaller brownfield-oriented case that can scale if market demand warrants. That answer showed Kinder Morgan is designing projects with optionality rather than committing immediately to the largest configurations.
Kinder Morgan Leaves an Expansion-First ImpressionThe call’s overall tone was confident and disciplined. Management emphasized that all business segments contributed to growth, but the center of the discussion stayed on gas infrastructure, backlog conversion and the ability to fund expansion internally.
Just as important, executives were careful not to overpromise on timing. Across multiple Q&A exchanges, they stressed the size of the opportunity set while keeping the focus on contract execution, permitting and customer negotiations.
What Zacks Signals Say on KMIKMI carries a Zacks Rank #3 (Hold), along with a Value Score of D, Growth Score of C, Momentum Score of D and VGM Score of D. In Zacks terms, the rank suggests a more neutral near-term earnings revision outlook than a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Style Scores point to a mixed profile, with the Growth Score standing above the stock’s Value, Momentum and VGM readings. Zacks’ framework generally favors Rank #1 or #2 stocks paired with an A or B Style Score, while Rank #3 names can be held but do not carry the same expected near-term performance profile. The Zacks Rank can also change as analysts revise estimates following the just-reported results.
High-yield dividend stocks tend to be slower-growing companies. However, that's not the case with Kinder Morgan (KMI +0.34%). The natural gas pipeline giant grew adjusted earnings per share by a brisk 32% in the second quarter, driven by robust gas demand. That's providing plenty of support for its 3.7%-yielding dividend.
That strong growth should continue, fueled by rising power demand to support AI data centers and other catalysts. It should give the pipeline stock ample power to continue growing its high-yielding dividend.
Image source: Getty Images.
Robust results Kinder Morgan recently reported its second-quarter results. The gas pipeline giant posted $867 million of net income, a record for the second quarter. Meanwhile, its adjusted earnings rocketed 32% to $0.37 per share.
The company's gas pipeline segment generated nearly $1.5 billion in earnings before depreciation and amortization, up 8.5% from the prior year. Kinder Morgan benefited from a 7% uptick in volumes, driven by liquefied natural gas (LNG) deliveries, increased exports to Mexico, and higher power generation demand. It also benefited from a 17% increase in product pipeline earnings and a 43% surge in carbon dioxide profitability, both largely driven by higher commodity prices.
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Kinder Morgan's strong start to the year has it on track to significantly exceed its budget. The company initially expected to generate $1.37 per share of adjusted earnings this year, up about 8% from last year. It now expects to exceed that budget by 12%. The company's higher earnings are further strengthening its balance sheet. It now expects to end the year with a leverage ratio of 3.6 times, down from its 3.8 times target and at the low end of its target range.
The pipeline company completed $660 million of growth capital projects during the quarter. Notable ones included the Cumberland Project to serve a new gas-fired power plant in Tennessee and the expansion of its Gulf Coast Express pipeline to increase gas flow from the Permian Basin to markets in South Texas. It ended the quarter with a $9.6 billion backlog of expansion projects, down $500 million from the first quarter. However, the company's board recently provided contingent approval for nearly $400 million in additional projects that aren't currently in the backlog, with the bulk supporting power generation and local distribution company demand. These secured projects provide visibility into growth through 2030.
AI power demand is emerging as a major catalyst for gas demand. There are currently 277 gigawatts of power demand from data centers under development in the U.S., representing 42 billion cubic feet per day of potential natural gas capacity to meet peak demand. While developers won't build all that capacity and gas won't be the only power source, it's a meaningful long-term growth driver for Kinder Morgan. It's currently pursuing more than $10 billion of additional gas infrastructure expansion opportunities beyond its current backlog to further enhance and extend its growth profile.
High-powered total return potential Kinder Morgan has increased its high-yielding dividend for nine straight years. That trend seems likely to continue due to surging gas demand from AI power and other catalysts. This growth and income combo should give Kinder Morgan the fuel to generate high-octane total returns, making it a great way to cash in on the AI boom.
3 Dividend Stocks with Growth on Tap for the Second HalfKinder Morgan NYSE: KMI reported second-quarter 2026 results that executives said exceeded both year-earlier levels and the company’s internal budget, as stronger natural gas volumes, higher commodity-related contributions and broad-based segment performance supported the quarter.
Executive Chairman Rich Kinder said the company’s adjusted EBITDA and earnings per share continued to exceed both prior-year results and Kinder Morgan’s 2026 budget “by significant margins.” He said the company continues to benefit from rising demand tied to LNG exports and natural gas-fired power generation, creating additional opportunities for midstream infrastructure backed by long-term contracts.
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Pipelines and Automation: 2 Energy Plays Built for Any Oil PriceCEO Kim Allen Dang called the quarter “another fantastic quarter” and said adjusted EBITDA increased 12% from the second quarter of 2025, while adjusted earnings per share rose 32%. Dang said every business segment contributed positively to the year-over-year performance.
Kinder Morgan Raises 2026 Outlook Dang said Kinder Morgan is raising its full-year guidance after a strong first half and confidence in the remainder of 2026. The company now expects full-year adjusted EBITDA to be at least 5% above its 2026 budget and adjusted EPS to be at least 11% above the original budget.
Kinder Morgan’s Cash Flow Drives Upside: Potential Swells in Q1CFO David Michels said second-quarter net income attributable to Kinder Morgan was $867 million, with EPS of $0.39. Those figures were up 21% and 22%, respectively, from the second quarter of 2025. Adjusted EPS was $0.37, up 32% year over year, and adjusted EBITDA rose 12%.
Michels said EPS came in more than 24% above budget for the quarter, while adjusted EBITDA was more than 9% above budget. Year to date, he said EBITDA has grown 15% and adjusted EPS has grown 35% compared with 2025.
The company declared a quarterly dividend of $0.2975 per share, or $1.19 annualized, representing a 2% increase over 2025.
Natural Gas Demand Drives Growth Opportunities Dang said the fundamentals supporting Kinder Morgan’s natural gas business “have never been stronger.” Citing Wood Mackenzie’s latest outlook, she said U.S. natural gas demand is expected to exceed 160 billion cubic feet per day by 2035, an increase of about 46 Bcf per day compared with 2025. Dang said the primary drivers are increased LNG export capacity and rapidly growing power demand.
President Dax Sanders said natural gas transport volumes increased 7% from the second quarter of 2025. He cited several drivers, including increased LNG feed gas deliveries on Tennessee Gas Pipeline, higher demand on Kinder Morgan’s intrastate system, increased power demand along the El Paso pipeline and greater exports to Mexico.
Sanders said natural gas gathering volumes increased 26% year over year, with the largest contribution from the KinderHawk system in the Haynesville, where volumes rose 54%.
Sanders said Kinder Morgan is evaluating projects to serve more than 10 Bcf per day of natural gas demand in the power generation sector and about 3 Bcf per day in the LNG sector.
Backlog Remains Near Historic Highs Dang said Kinder Morgan’s project backlog stood at approximately $9.6 billion at the end of the quarter, down from about $10.1 billion. The decline was mainly due to the company placing more than $650 million of projects into service, partly offset by about $200 million of new project additions.
Dang said the board contingently approved nearly $400 million of projects that are in advanced contract negotiations. Those projects will be added to the backlog upon contract execution, which she said would “virtually” offset the quarter’s backlog decline.
Dang also said the company expects to add significant projects from its more than $10 billion opportunity set before year-end, likely more than offsetting the roughly $1 billion of projects expected to enter service during the second half of 2026.
Kinder Morgan’s three largest natural gas expansion projects — Mississippi Crossing, South System Expansion Four and Trident — remain on schedule and on budget, Dang said. Mississippi Crossing and South System Expansion Four received final FERC environmental impact statements in June, and the company expects FERC certificates by the end of the month. Trident is about 60% complete.
During the question-and-answer session, Dang said Kinder Morgan has room to fund additional capital spending while remaining within its leverage targets. She said the company ended the quarter at 3.6 times leverage and could add $3.4 billion of balance sheet capacity if leverage moved to 4.0 times.
Segment Performance Mixed Outside Natural Gas In products pipelines, Sanders said refined product volumes declined 5% compared with the second quarter of 2025. Crude and condensate volumes were down 16% from the first quarter of 2025, mostly due to the removal of Double H from service for an NGL conversion early in the third quarter of 2025. Excluding Double H volumes in both periods, crude and condensate volumes were down about 5% year over year.
Sanders said Kinder Morgan and Phillips 66 continue to move forward on Western Gateway. He said partnership agreements have taken longer than expected because of the complexity of the proposed arrangement, but the company aims to complete documents within the next month or two and, assuming progress continues, move to a final investment decision.
In terminals, Sanders said liquids lease capacity remained high at 93%, and utilization of tanks available for use was about 99% at key hubs on the Houston Ship Channel and at Carteret. He said the tanker fleet remains well contracted, assuming likely options are exercised, with 100% leased through 2026, 97% leased through 2027 and 80% leased through 2028.
The CO₂ segment reported 10% higher net oil production volumes compared with the second quarter of 2025, led by a 15% increase at SACROC. NGL volumes rose 9%, while CO₂ volumes increased 5%. Renewable natural gas volumes increased 8% as improved operations drove higher uptime and hydrocarbon recovery.
Balance Sheet and Capital Allocation Michels said Kinder Morgan ended the quarter with net debt to adjusted EBITDA of 3.6 times, down from 3.8 times at the beginning of the year and below the company’s budget. He said Kinder Morgan now expects to end 2026 at 3.6 times leverage, compared with a budgeted 3.8 times, despite higher spending tied to the Monument acquisition and increased growth capital.
Year to date, Michels said Kinder Morgan generated $3.45 billion of cash flow from operations, paid $1.315 billion in dividends, spent $1.92 billion on total capital and completed the $500 million Monument acquisition. Net debt increased $311 million over that period.
Dang said Kinder Morgan does not currently view itself as capital constrained. She said acquisitions compete with expansion projects for capital, but noted that acquisitions include immediate cash flow, while expansion projects typically involve a timing drag before generating returns.
About Kinder Morgan (NYSE:KMI)Kinder Morgan NYSE: KMI is a large energy infrastructure company that owns and operates an extensive network of pipelines and terminals across North America. Its core activities center on the transportation, storage and handling of energy products, including natural gas, natural gas liquids (NGLs), crude oil, refined petroleum products and carbon dioxide. The company's assets include long-haul and gathering pipelines, storage facilities, and multi-modal terminals that serve producers, refiners, utilities and industrial customers.
Kinder Morgan's operations deliver midstream services such as pipeline transportation, terminaling, storage and related logistics and maintenance.
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Kinder Morgan (KMI - Free Report) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +19.36%. A quarter ago, it was expected that this oil and natural gas pipeline and storage company would post earnings of $0.38 per share when it actually produced earnings of $0.48, delivering a surprise of +26.32%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Kinder Morgan, which belongs to the Zacks Oil and Gas - Production and Pipelines industry, posted revenues of $4.48 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.33%. This compares to year-ago revenues of $4.04 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kinder Morgan shares have added about 17.8% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Kinder Morgan?While Kinder Morgan has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kinder Morgan was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $4.42 billion in revenues for the coming quarter and $1.49 on $18.17 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Production and Pipelines is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Enbridge (ENB - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31.
This oil and natural gas transportation and power transmission company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -6.4%. The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level.
Enbridge's revenues are expected to be $11.03 billion, up 2.6% from the year-ago quarter.
HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc.’s (NYSE: KMI) board of directors today approved a cash dividend of $0.2975 per share for the second quarter ($1.19 annualized), payable on August 17, 2026, to stockholders of record as of the close of business on August 3, 2026. This dividend is a 2% increase over the second quarter of 2025.
KMI is reporting:
Second quarter net income attributable to KMI of $867 million, an all-time record high for the second quarter. This was up from $715 million in the second quarter of 2025. Adjusted Net Income Attributable to KMI, which excludes Certain Items, was $821 million, 33% higher than the second quarter of 2025. Adjusted EBITDA of $2,199 million was also a record for the second quarter and was up 12% versus the second quarter of 2025. Earnings per share (EPS) of $0.39, up 22% versus the second quarter of 2025, and Adjusted EPS of $0.37, up 32% versus the second quarter of 2025. “Our fee-based business model, strategically located network of assets, and portfolio of long-term contracts with financially strong customers continue to support stable and predictable cash flows,” Executive Chairman Richard D. Kinder said.
“At the same time, demand for natural gas infrastructure continues to grow. Increasing LNG exports, rising power demand, and industrial expansion make our existing highly utilized assets more valuable and create significant opportunities for investment across our footprint.
“The company’s stable cash flows provide the financial flexibility to fund virtually all of our project backlog internally, support a growing dividend and maintain a strong balance sheet,” Kinder said. “We expect those projects to generate attractive returns, driving future earnings and cash flow growth while helping meet the nation's growing energy infrastructure needs.”
“Strong financial contributions from our business segments resulted in a record second quarter. The company delivered second quarter 2026 net income attributable to KMI of $867 million, 21% higher than the second quarter of 2025, while Adjusted EPS and Adjusted EBITDA were 32% and 12% higher, respectively, than the second quarter of 2025,” Chief Executive Officer Kim Dang said.
Dang continued, “In the second quarter, we continued to internally fund high-quality capital projects while generating cash flow from operations of $2 billion and free cash flow (FCF), which is after capital expenditures, of $1 billion. Our balance sheet remains healthy, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times, at the low end of our targeted range.
“We also achieved very strong results from capital expansion project execution this quarter, placing approximately $660 million (KM-share) in expansion projects into service. These included Tennessee Gas Pipeline’s (TGP) Cumberland Project that will serve a new natural gas-fired power plant in Tennessee; Hiland Express, a conversion of our Double H Pipeline system from crude oil to natural gas liquids service; and the eagerly anticipated Gulf Coast Express pipeline expansion to increase natural gas flows from the Permian Basin to South Texas markets. These revenue-generating expansion projects now join our strong base business, adding to our unparalleled network of pipeline and storage assets.
“As a result of placing those large projects into service, our project backlog at the end of the second quarter of 2026 was $9.6 billion, down $500 million from the first quarter of 2026, although the board today provided contingent approval on almost $400 million in projects that are not yet in the backlog. Natural gas projects account for approximately 92% of our project backlog, and more than 60% of the backlog is associated with projects supporting power generation and local distribution company demand. Even beyond the backlog, we continue to see strong interest from our customers in developing additional natural gas infrastructure.
“In calculating backlog Project EBITDA multiples, we exclude both the capital and EBITDA from our CO2 enhanced oil recovery projects and our gathering and processing projects where first-full-year multiples are more favorable, but the earnings are more uneven than with our other business segments. We expect the remaining $8.5 billion of projects in the backlog, when realized, to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.6 times.”
2026 Outlook
For 2026, KMI budgeted net income attributable to KMI of $3.1 billion, Adjusted EPS of $1.36, declared dividends of $1.19 per share, Adjusted EBITDA of $8.6 billion, and year-end Net Debt-to-Adjusted EBITDA of 3.8 times. Based on results through the second quarter, KMI currently expects to be more than 5% favorable to budget on an Adjusted EBITDA basis and more than 12% favorable to budget on Adjusted EPS for the year. We also expect to end the year with an improved Net Debt-to-Adjusted EBITDA of 3.6 times.
This press release includes Adjusted Net Income Attributable to KMI, Adjusted EPS, Adjusted Segment EBDA, Adjusted EBITDA, Net Debt, FCF, and Project EBITDA, all of which are non-GAAP financial measures. For descriptions of these non-GAAP financial measures and reconciliations to the most comparable measures prepared in accordance with generally accepted accounting principles, please see “Non-GAAP Financial Measures” and the tables accompanying our preliminary financial statements.
Overview of Business Segments
“The Natural Gas Pipelines business segment’s financial performance was up in the second quarter of 2026 relative to the second quarter of 2025, on higher contributions from our Texas Intrastate system and our gathering assets,” KMI President Dax Sanders said.
“Natural gas transport volumes were up 7% compared to the second quarter of 2025, primarily due to LNG deliveries on TGP, increased demand for services on our Texas Intrastate system, and increased exports to Mexico as well as higher power generation demand in Arizona on El Paso Natural Gas Pipeline.
“Natural gas gathering volumes were up 26% from the second quarter of 2025 across our assets, with our KinderHawk system experiencing the largest growth.
“Contributions from the Products Pipelines business segment were up compared to the second quarter of 2025 due primarily to higher commodity prices.
“Total refined products volumes were down 5% compared to the second quarter of 2025 due to temporary West Coast supply disruptions, as well as a higher commodity price environment over the quarter. Crude and condensate volumes were down 16% compared to the second quarter of 2025, largely due to the conversion of our Double H pipeline to natural gas liquids service,” Sanders said.
“Terminals business segment earnings were up compared to the second quarter of 2025. The increase was led by our liquids terminals business, which benefited from higher rates and ancillary fees at our Houston Ship Channel hub facilities as well as favorable commodity pricing. Earnings from our Jones Act tanker fleet, which remains fully contracted under term charter agreements, were also up versus the prior year period on higher average charter rates. Contributions from our bulk terminals business were down despite higher volumes owing to one-time events in the prior year period,” Sanders continued.
“CO2 business segment earnings, which include the Energy Transition Ventures group, were up compared to the second quarter of 2025 due primarily to higher commodity prices and volumes. Volumes at SACROC, our largest field, were up 15% compared to the prior year period,” Sanders said.
Other News
Natural Gas Pipelines
On June 26, 2026, the Federal Energy Regulatory Commission (FERC) issued a Final Environmental Impact Statement covering both Southern Natural Gas (SNG) and Elba Express (EEC) Companies’ South System Expansion 4 (SSE4) project and TGP’s Mississippi Crossing (MSX) project. FERC has previously indicated that it expects to issue orders granting certificates of public convenience and necessity for both projects by the end of July 2026. The approximately $3.5 billion SSE4 project (KM-share, including EEC, approximately $1.8 billion) is designed to increase SNG’s South Main Line capacity by roughly 1.3 billion cubic feet per day (Bcf/d). With the timely receipt of all permits and approvals, KMI expects to place the first phase of SSE4 in service in the fourth quarter of 2028 and the second phase in the fourth quarter of 2029. The approximately $1.7 billion MSX project is expected to be placed in service as early as the second quarter of 2028, subject to the timely receipt of all permits and approvals. On June 5, 2026, TGP filed an application with the FERC for its South Texas Enhancement Project. The approximately $90 million project is designed to provide incremental firm natural gas transportation to South Texas and Mexico markets and extend existing shippers’ transportation paths to access incremental natural gas supplies. The project includes approximately 1.7 miles of new pipeline, an overpressure protection facility, and a new compressor station. With the timely receipt of all required permits and approvals, TGP expects the project to be placed in service in the second quarter of 2028. Natural Gas Pipeline Company of America LLC (NGPL) is continuing to develop its Amarillo Expansion project to support growing demand in the Texas Panhandle, including additional data center development. The expansion is expected to provide incremental firm transportation capacity of up to approximately 550,000 Dth/d. All of the project’s capacity is fully subscribed under a long-term contract. NGPL is preparing to file an application with the FERC for the approximately $200 million project (KM-share approximately $75 million) in the third quarter of 2026. With the timely receipt of all required permits and approvals, NGPL expects the project to be placed in service in the third quarter of 2028. On May 26, 2026, TGP placed in service its approximately $235 million Cumberland project, an approximately 32-mile, 30-inch pipeline lateral originating from TGP’s existing 100 Line in Dickson County, Tennessee and terminating at Tennessee Valley Authority’s (TVA) new natural gas-fired power plant in Stewart County, Tennessee. The project provides approximately 245,000 Dth/d of additional natural gas transportation service to support TVA’s commissioning and operation of its new power plant. On April 29, 2026, KMI placed in service its approximately $165 million Hiland Express Pipeline project, converting the Double H Pipeline system from crude oil to natural gas liquids service and providing Williston Basin producers and midstream companies with pipeline capacity to key market hubs. On June 23, 2026, the approximately $450 million Gulf Coast Express expansion project (KM-share approximately $160 million) was placed in service. The expansion increases natural gas transportation capacity by approximately 570 million cubic feet per day from the Permian Basin to South Texas markets and brings total system capacity to approximately 2.59 Bcf/d. Products Pipelines
KMI and Phillips 66 continue to advance the Western Gateway Pipeline project and have started the process of pursuing the necessary permits. As previously noted, the project is subject to the execution of definitive transportation service agreements, joint venture agreements, and respective board approvals. The refined products pipeline system would connect Midwest and Gulf Coast refinery supplies to Phoenix, Arizona, and California markets with connectivity to Las Vegas, Nevada, via KMI’s CALNEV Pipeline. Terminals
KMI is expanding its industry-leading storage, connectivity, and logistics offering in its Houston Ship Channel refined products hub. The scope of work includes the construction of two dedicated refined products pipelines connecting KMI’s Pasadena Terminal with a nearby major refinery, as well as various intra-terminal piping and tank modifications, including enhanced in-tank blending capabilities for butane and other gasoline components. The approximately $139 million project is supported by a long-term storage and volume commitment with a major national oil company and is expected to be in service in the third quarter of 2027. KMI is expanding the connectivity and capabilities of its 1.5-million-barrel Kinder Morgan Export Terminal (KMET) on the Houston Ship Channel. The scope of work includes the reconfiguration of two existing bi-directional refined products pipelines between KMET and KMI’s Pasadena Terminal and various piping and tank modifications enhancing the in-tank blending capabilities at KMET. The approximately $30 million project is supported by a long-term storage commitment with a major international trading company and is expected to be in service in the first quarter of 2027. All expected in-service dates for projects described above assume timely receipt and continued effectiveness of all necessary permits and approvals.
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of the people, communities, and businesses we serve. We own an interest in or operate approximately 78,000 miles of pipelines, 136 terminals, more than 700 Bcf of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.9 Bcf per year of gross production. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2, renewable fuels and other products, and our terminals store and handle various commodities, including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks. Learn more about our work advancing energy solutions on the lower carbon initiatives page at www.kindermorgan.com.
Please join Kinder Morgan, Inc. at 4:30 p.m. ET on Wednesday, July 22, at www.kindermorgan.com for a LIVE webcast conference call on the company’s second quarter earnings.
Non-GAAP Financial Measures
As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA), along with the non-GAAP financial measures of Adjusted Net Income Attributable to Common Stock, in the aggregate and per share, Adjusted Segment EBDA, Adjusted Net Income Attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses (EBITDA), and Net Debt.
Our non-GAAP financial measures described below should not be considered alternatives to GAAP net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.
Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in net income attributable to Kinder Morgan, Inc., but typically (1) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), (2) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation and casualty losses), or (3) align the timing of cash impacts from natural gas inventory hedges with the future associated physical withdrawals from inventory. (See the accompanying Tables 2, 3, 5, and 6.) We also include adjustments related to joint ventures (see “Amounts associated with Joint Ventures” below).
The following table summarizes our Certain Items for the three and six months ended June 30, 2026 and 2025.
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
(In millions)
Certain Items
Risk management activities (1)(2)
$
(83
)
$
(95
)
$
30
$
(11
)
Income tax Certain Items (3)
37
(2
)
11
(37
)
Other
—
1
—
1
Total Certain Items (4)(5)
$
(46
)
$
(96
)
$
41
$
(47
)
Notes
(1)
Includes changes in fair value of unsettled derivatives, of which gains or losses are reflected within non-GAAP financial measures when realized.
(2)
Includes natural gas inventory hedges, of which gains or losses are reflected within non-GAAP financial measures when the associated physical gas is withdrawn from inventory.
(3)
Represents the income tax provision on Certain Items plus discrete income tax items. Includes the impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments and is separate from the related tax provision recognized at the investees by the joint ventures which are also taxable entities.
(4)
Amounts for the periods ended June 30, 2026 and 2025 include $(1) million and $(2) million for the three-month periods, respectively, and $(1) million for the six-month 2026 period reported within “Earnings from equity investments” on the accompanying Preliminary Consolidated Statement of Income of "Risk management activities."
(5)
Amounts for the three and six-month periods ended June 30, 2025 includes $(1) and $1 million, respectively, reported within "Interest, net" on the accompanying Preliminary Consolidated Statement of Income of “Risk management activities.”
Adjusted Net Income Attributable to Kinder Morgan, Inc. (KMI) is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, our investors, and other external users of our financial statements as a supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 1 and 2.)
Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, our investors, and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. (See the accompanying Table 2.)
Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors, and other external users of our financial statements additional insight into performance trends across our business segments, our segments’ relative contributions to our consolidated performance, and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment’s performance. (See the accompanying Table 3.)
Adjusted EBITDA is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, including the amortization of basis differences related to our joint ventures, income tax expense, and interest. We also include amounts from joint ventures for income taxes and DD&A (see “Amounts associated with Joint Ventures” below). Adjusted EBITDA (on a rolling 12-months basis) is used by management, investors, and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the GAAP measure most directly comparable to Adjusted EBITDA is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 2 and 5.)
Amounts associated with Joint Ventures - Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures (JVs) and consolidated JVs utilizing the same recognition and measurement methods used to record “Earnings from equity investments” and “Noncontrolling interests (NCI),” respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated JVs includes the same adjustments (DD&A, including the amortization of basis differences related to joint ventures only, and income tax expense) with respect to the JVs as those included in the calculation of Adjusted EBITDA for our wholly-owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests. (See Tables 2, 5 and 6.) Although these amounts related to our unconsolidated JVs are included in the calculation of Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses, or cash flows of such unconsolidated JVs.
Net Debt is calculated by subtracting from debt (1) cash and cash equivalents, (2) debt fair value adjustments, and (3) the foreign exchange impact on Euro-denominated bonds for which we have entered into currency swaps to convert that debt to U.S. dollars. Net Debt, on its own and in conjunction with our Adjusted EBITDA (on a rolling 12-months basis) as part of a ratio of Net Debt-to-Adjusted EBITDA, is a non-GAAP financial measure that is used by management, investors, and other external users of our financial information to evaluate our leverage. Our ratio of Net Debt-to-Adjusted EBITDA is also used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the most comparable measure to Net Debt is total debt as reconciled in the notes to the accompanying Preliminary Consolidated Balance Sheets in Table 5.
Project EBITDA is calculated for an individual capital project as earnings before interest expense, taxes, DD&A, and general and administrative expenses attributable to such project, or for JV projects, consistent with the methods described above under “Amounts associated with Joint Ventures,” and in conjunction with capital expenditures for the project, is the basis for our Project EBITDA multiple. Management, investors, and others use Project EBITDA to evaluate our return on investment for capital projects before expenses that are generally not controllable by operating managers in our business segments. We believe the GAAP measure most directly comparable to Project EBITDA is the portion of net income attributable to a capital project. We do not provide the portion of budgeted net income attributable to individual capital projects (the GAAP financial measure most directly comparable to Project EBITDA) due to the impracticality of predicting, on a project-by-project basis through the second full year of operations, certain amounts required by GAAP, such as projected commodity prices, unrealized gains and losses on derivatives marked to market, and potential estimates for certain contingent liabilities associated with the project completion.
FCF is calculated by reducing cash flow from operations for capital expenditures (sustaining and expansion), and FCF after dividends is calculated by further reducing FCF for dividends paid during the period. FCF is used by management, investors, and other external users as an additional leverage metric, and FCF after dividends provides additional insight into cash flow generation. Therefore, we believe FCF is useful to our investors. We believe the GAAP measure most directly comparable to FCF is cash flow from operations. (See the accompanying Table 6.)
Important Information Relating to Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Generally, the words “expects,” “believes,” “anticipates,” “plans,” “will,” “shall,” “estimates,” “projects,” and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements in this news release include, among others, express or implied statements pertaining to: the long-term demand for KMI’s assets and services; KMI’s 2026 expectations; anticipated dividends; KMI’s capital projects, including the regulatory environment for projects and expected costs, completion timing, and benefits of those projects; and proposed joint ventures. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although KMI believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance as to when or if any such forward-looking statements will materialize nor their ultimate impact on our operations or financial condition. Important factors that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements include: the timing and extent of changes in the supply of and demand for the products we transport and handle; trends expected to drive new natural gas demand for electricity generation; commodity prices; counterparty financial risk; changes in tariffs and trade restrictions; repercussions of recent armed conflicts in the Middle East; including commodity price volatility and potential adverse effects on financial and economic conditions; our ability to obtain required permits and approvals for pending expansion projects when expected; KMI’s ability to negotiate terms of the proposed Western Gateway Pipeline joint venture with Phillips 66; and the other risks and uncertainties described in KMI’s reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year-ended December 31, 2025 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere), and its subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at ir.kindermorgan.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, KMI undertakes no obligation to update any forward-looking statement because of new information, future events, or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.
Table 1
Kinder Morgan, Inc. and Subsidiaries
Preliminary Consolidated Statements of Income
(In millions, except per share amounts, unaudited)
Three Months Ended
June 30,
%
change
Six Months Ended
June 30,
%
change
2026
2025
2026
2025
Revenues
$
4,477
$
4,042
$
9,305
$
8,283
Operating costs, expenses, and other
Costs of sales (exclusive of items shown separately below)
1,405
1,211
3,154
2,687
Operations and maintenance
806
773
1,517
1,484
Depreciation, depletion, and amortization
620
616
1,253
1,226
General and administrative
192
188
376
375
Taxes, other than income taxes
120
111
234
223
Other income, net
(12
)
(9
)
(19
)
(9
)
Total operating costs, expenses, and other
3,131
2,890
6,515
5,986
Operating income
1,346
1,152
2,790
2,297
Other income (expense)
Earnings from equity investments
225
206
479
426
Interest, net
(425
)
(452
)
(855
)
(903
)
Other, net
20
13
40
28
Income before income taxes
1,166
919
2,454
1,848
Income tax expense
(272
)
(177
)
(559
)
(363
)
Net income
894
742
1,895
1,485
Net income attributable to NCI
(27
)
(27
)
(52
)
(53
)
Net income attributable to Kinder Morgan, Inc.
$
867
$
715
$
1,843
$
1,432
Class P Shares
Basic and diluted earnings per share
$
0.39
$
0.32
22
%
$
0.82
$
0.64
28
%
Basic and diluted weighted average shares outstanding
2,225
2,222
—
%
2,225
2,222
—
%
Declared dividends per share
$
0.2975
$
0.2925
2
%
$
0.595
$
0.585
2
%
Adjusted Net Income Attributable to Kinder Morgan, Inc. (1)
$
821
$
619
33
%
$
1,884
$
1,385
36
%
Adjusted EPS (1)
$
0.37
$
0.28
32
%
$
0.84
$
0.62
35
%
Table 2
Kinder Morgan, Inc. and Subsidiaries
Preliminary Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc., to Adjusted Net Income Attributable to Common Stock and to Adjusted EBITDA Reconciliations
(In millions, unaudited)
Three Months Ended
June 30,
%
change
Six Months Ended
June 30,
%
change
2026
2025
2026
2025
Net income attributable to Kinder Morgan, Inc.
$
867
$
715
21
%
$
1,843
$
1,432
29
%
Certain Items (1)
Risk management activities
(83
)
(95
)
30
(11
)
Income tax Certain Items
37
(2
)
11
(37
)
Other
—
1
—
1
Total Certain Items
(46
)
(96
)
52
%
41
(47
)
187
%
Adjusted Net Income Attributable to Kinder Morgan, Inc.
$
821
$
619
33
%
$
1,884
$
1,385
36
%
Net income attributable to Kinder Morgan, Inc.
$
867
$
715
21
%
$
1,843
$
1,432
29
%
Total Certain Items (2)
(46
)
(96
)
41
(47
)
Net income allocated to participating securities and other (3)
(4
)
(4
)
(10
)
(8
)
Adjusted Net Income Attributable to Common Stock
$
817
$
615
33
%
$
1,874
$
1,377
36
%
Net income attributable to Kinder Morgan, Inc.
$
867
$
715
21
%
$
1,843
$
1,432
29
%
Total Certain Items (2)
(46
)
(96
)
41
(47
)
DD&A
620
616
1,253
1,226
Income tax expense (4)
235
179
548
400
Interest, net (5)
425
453
855
902
Amounts associated with joint ventures
Unconsolidated JV DD&A (6)
92
100
183
200
Remove consolidated JV partners' DD&A
(15
)
(16
)
(31
)
(31
)
Unconsolidated JV income tax expense (7)
21
21
46
47
Adjusted EBITDA
$
2,199
$
1,972
12
%
$
4,738
$
4,129
15
%
Notes
(1)
See table included in “Non-GAAP Financial Measures—Certain Items.”
(2)
For a detailed listing, see the above reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.
(3)
Other for each of the periods ended June 30, 2026 and 2025 includes Adjusted net income in excess of distributions for participating securities of less than $1 million.
(4)
To avoid duplication, adjustments for income tax expense for the periods ended June 30, 2026 and 2025 exclude $37 million and $(2) million for the three-month periods, respectively, and $11 million and $(37) million for the six-month periods, respectively, which amounts are already included within “Certain Items.” See table included in “Non-GAAP Financial Measures—Certain Items.”
(5)
To avoid duplication, adjustments for interest, net excludes $(1) million and $1 million for the three and six-month periods ended June 30, 2025, respectively, which amounts are already included within “Certain Items.” See table included in “Non-GAAP Financial Measures—Certain Items.”
(6)
Includes amortization of basis differences related to our JVs.
(7)
Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL, and Products (SE) Pipe Line equity investments. The impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments is included within “Certain Items” above.
Table 3
Kinder Morgan, Inc. and Subsidiaries
Preliminary Reconciliation of Segment EBDA to Adjusted Segment EBDA
(In millions, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Segment EBDA (1)
Natural Gas Pipelines Segment EBDA
$
1,520
$
1,436
$
3,231
$
2,889
Certain Items (2)
Risk management activities
(59
)
(89
)
27
(9
)
Natural Gas Pipelines Adjusted Segment EBDA
$
1,461
$
1,347
$
3,258
$
2,880
Products Pipelines Segment EBDA
$
343
$
289
$
663
$
562
Certain Items (2)
Risk management activities
(4
)
—
1
1
Products Pipelines Adjusted Segment EBDA
$
339
$
289
$
664
$
563
Terminals Segment EBDA
$
310
$
300
$
639
$
575
Certain Items (2)
Risk management activities
(1
)
—
—
—
Terminals Adjusted Segment EBDA
$
309
$
300
$
639
$
575
CO2 Segment EBDA
$
226
$
150
$
394
$
331
Certain Items (2)
Risk management activities
(19
)
(5
)
2
(4
)
CO2 Adjusted Segment EBDA
$
207
$
145
$
396
$
327
Table 4
Segment Volume and CO2 Segment Hedges Highlights
(Historical data is pro forma for acquired and divested assets, JV volumes at KMI share (1))
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Natural Gas Pipelines
Natural gas transport volumes (BBtu/d)
47,886
44,818
48,830
45,509
Natural gas sales volumes (BBtu/d)
3,908
2,832
3,900
2,716
Gathering volumes (BBtu/d)
4,637
3,692
4,479
3,725
NGL transport (MBbl/d)
52
39
48
35
Products Pipelines (MBbl/d)
Gasoline (2)
970
1,016
941
975
Diesel fuel
357
369
349
353
Jet fuel
296
325
294
314
Total refined product volumes
1,623
1,710
1,584
1,642
Crude and condensate
421
503
420
490
Total delivery volumes (MBbl/d)
2,044
2,213
2,004
2,132
Terminals
Liquids leasable capacity (MMBbl)
78.6
78.7
78.6
78.7
Liquids utilization % (3)
93.0
%
94.4
%
93.2
%
94.3
%
Bulk transload tonnage (MMtons)
12.9
12.6
25.0
24.8
CO2 (MBbl/d)
SACROC oil production
21.11
18.42
20.68
18.84
Yates oil production
5.88
6.01
5.77
5.98
Other
1.05
1.09
1.05
1.09
Total oil production - net (MBbl/d) (4)
28.04
25.52
27.50
25.91
NGL sales volumes - net (MBbl/d) (4)
9.80
9.03
9.77
9.16
CO2 sales volumes - net (Bcf/d)
0.306
0.291
0.309
0.301
RNG sales volumes (BBtu/d)
13
12
13
10
Realized weighted average oil price ($ per Bbl)
$
73.78
$
67.60
$
69.71
$
67.99
Realized weighted average NGL price ($ per Bbl)
$
33.38
$
32.08
$
31.71
$
33.74
CO2 Segment Hedges
Remaining
2026
2027
2028
Crude Oil (5)
Price ($ per Bbl)
$
64.54
$
63.92
$
67.28
Volume (MBbl/d)
23.15
18.10
11.30
NGLs
Price ($ per Bbl)
$
42.42
$
52.33
Volume (MBbl/d)
4.18
0.99
Notes
(1)
Volumes for acquired assets are included for all periods. However, EBDA contributions from acquisitions are included only for periods subsequent to their acquisition. Volumes for assets divested, idled and/or held for sale are excluded for all periods presented.
(2)
Gasoline volumes include ethanol pipeline volumes.
(3)
The ratio of our tankage capacity in service to liquids leasable capacity.
(4)
Net of royalties and outside working interests.
(5)
Includes West Texas Intermediate hedges.
Table 5
Kinder Morgan, Inc. and Subsidiaries
Preliminary Consolidated Balance Sheets
(In millions, unaudited)
June 30,
December 31,
2026
2025
Assets
Cash and cash equivalents
$
89
$
63
Other current assets
2,499
2,691
Property, plant, and equipment, net
40,522
39,331
Investments
7,705
7,532
Goodwill
20,084
20,084
Deferred charges and other assets
3,163
3,047
Total assets
$
74,062
$
72,748
Liabilities and Stockholders' Equity
Short-term debt
$
2,443
$
1,226
Other current liabilities
3,204
3,096
Long-term debt
29,701
30,597
Debt fair value adjustments
104
180
Other
5,731
5,200
Total liabilities
41,183
40,299
Other stockholders' equity
31,681
31,117
Accumulated other comprehensive (loss) income
(50
)
45
Total KMI stockholders' equity
31,631
31,162
Noncontrolling interests
1,248
1,287
Total stockholders' equity
32,879
32,449
Total liabilities and stockholders' equity
$
74,062
$
72,748
Net Debt (1)
$
32,027
$
31,716
Adjusted EBITDA Twelve Months Ended (2)
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Last Twelve Months Adjusted EBITDA
June 30,
December 31,
2026
2025
Net income attributable to Kinder Morgan, Inc.
$
3,467
$
3,056
Total Certain Items (3)
(69
)
(157
)
DD&A
2,480
2,453
Income tax expense (4)
982
834
Interest, net (4)
1,741
1,788
Amounts associated with joint ventures
Unconsolidated JV DD&A (5)
372
391
Less: Consolidated JV partners' DD&A
(62
)
(63
)
Unconsolidated JV income tax expense
89
89
Adjusted EBITDA
$
9,000
$
8,391
Net Debt-to-Adjusted EBITDA
3.6
3.8
Notes
(1)
Amounts calculated as total debt, less (i) cash and cash equivalents; (ii) debt fair value adjustments; and (ii) the foreign exchange impact on our Euro denominated debt of $28 million and $44 million as of June 30, 2026 and December 31, 2025, respectively, as we have entered into swaps to convert that debt to U.S.$.
(2)
Reflects the rolling 12-month amounts for each period above.
(3)
See table included in “Non-GAAP Financial Measures—Certain Items.”
(4)
Amounts are adjusted for Certain Items. See “Non-GAAP Financial Measures—Certain Items” for more information.
(5)
Includes amortization of basis differences related to our JVs.
Table 6
Kinder Morgan, Inc. and Subsidiaries
Preliminary Supplemental Information
(In millions, unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
KMI FCF
Net income attributable to Kinder Morgan, Inc.
$
867
$
715
$
1,843
$
1,432
Net income attributable to noncontrolling interests
In its upcoming report, Kinder Morgan (KMI - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.31 per share, reflecting an increase of 10.7% compared to the same period last year. Revenues are forecasted to be $4.29 billion, representing a year-over-year increase of 6.2%.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Kinder Morgan metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Realized weighted average oil price' will reach 73 dollars per barrel. The estimate compares to the year-ago value of 68 dollars per barrel.
Analysts predict that the 'Realized weighted average NGL price' will reach 36 dollars per barrel. The estimate compares to the year-ago value of 32 dollars per barrel.
The collective assessment of analysts points to an estimated 'Terminals - Liquids leasable capacity' of N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
The combined assessment of analysts suggests that 'NGL sales volumes - net' will likely reach 9.73 thousands of barrels of oil per day. Compared to the current estimate, the company reported 9.03 thousands of barrels of oil per day in the same quarter of the previous year.
Analysts expect 'Total oil production - net' to come in at 26.25 thousands of barrels of oil per day. The estimate compares to the year-ago value of 25.52 thousands of barrels of oil per day.
The average prediction of analysts places 'Terminals - Bulk transload tonnage' at 12 millions of ton. Compared to the present estimate, the company reported 13 millions of ton in the same quarter last year.
Based on the collective assessment of analysts, 'Segment EBDA- Natural gas Pipelines' should arrive at $1.43 billion. Compared to the present estimate, the company reported $1.44 billion in the same quarter last year.
Analysts forecast 'Segment EBDA- Terminals' to reach $293.64 million. The estimate compares to the year-ago value of $300.00 million.
The consensus estimate for 'Segment EBDA- Products Pipelines' stands at $305.31 million. The estimate is in contrast to the year-ago figure of $289.00 million.
It is projected by analysts that the 'Segment EBDA- CO2' will reach $189.27 million. The estimate is in contrast to the year-ago figure of $150.00 million.
View all Key Company Metrics for Kinder Morgan here>>>
Over the past month, shares of Kinder Morgan have returned +1% versus the Zacks S&P 500 composite's -0.6% change. Currently, KMI carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Kinder Morgan is scheduled to report second-quarter 2026 results on July 22 after the closing bell.KMI's second-quarter revenue are projected to rise 6.2% year over year to $4.29 billion.KMI's natural gas pipeline revenues are expected to rise, while segment earnings may edge lower. Kinder Morgan Inc. (KMI - Free Report) is set to report second-quarter 2026 results on July 22, after the closing bell.
In the last reported quarter, the company’s adjusted earnings of 48 cents per share topped the Zacks Consensus Estimate of 38 cents due to higher contributions from the Natural Gas Pipelines business segment.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while meeting the same twice, delivering an average surprise of 7.93%. This is depicted in the graph below:
Estimate Trend for KMIThe Zacks Consensus Estimate for second-quarter earnings per share of 31 cents has seen one upward revision in the past seven days. The estimated figure indicates a 10.7% jump from the prior-year reported figure.
The consensus estimate for revenues of $4.29 billion implies a 6.2% increase from the year-ago recorded figure.
Factors to Consider Ahead of KMI's Q2 ResultsKinder Morgan is a leading player in the midstream energy sector, with an extensive natural gas pipeline network spanning 58,600 miles. The company transports nearly 40% of the natural gas produced in the United States. A large portion of its contracts are fee-based and structured as take-or-pay agreements. KMI is likely to have generated stable cash flows in the June-end quarter of 2026.
For the second quarter, the Zacks Consensus Estimate points to mixed results across Kinder Morgan's business segments. While natural gas pipeline revenues are projected to increase to $2,718 million from $2,536 million in the prior-year quarter, earnings from this segment are expected to dip slightly to $1,433 million from $1,436 million recorded in the year-ago quarter. Terminal earnings are anticipated to fall to $294 million from $300 million last year. Together, these declines are likely to have hurt the company’s overall earnings.
Earnings WhispersOur proven model does not indicate an earnings beat for KMI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: KMI has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: Kinder Morgan currently carries a Zacks Rank of 3.
Stocks to ConsiderHere are some stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
NOV Inc. (NOV - Free Report) has an Earnings ESP of +19.69% and currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NOV is scheduled to release second-quarter 2026 earnings on July 28, 2026. The Zacks Consensus Estimate for NOV’s earnings is pegged at 16 cents per share, indicating a 44.8% decline from the prior-year reported figure.
Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +7.04% and carries a Zacks Rank of 3 at present. Cactus is scheduled to release second-quarter 2026 earnings on July 29.
The Zacks Consensus Estimate for WHD’s earnings is pegged at 71 cents per share, suggesting a 7.6% improvement from the prior-year reported figure.
HF Sinclair Corporation (DINO - Free Report) has an Earnings ESP of +11.69% and a Zacks Rank of 2. HF Sinclair is scheduled to release second-quarter 2026 earnings on July 28.
The Zacks Consensus Estimate for DINO’s earnings is pegged at $3.93 per share, suggesting a 131.2% increase from the prior-year reported figure.
Kinder Morgan (KMI - Free Report) ended the recent trading session at $32.54, demonstrating a +1.06% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
The oil and natural gas pipeline and storage company's stock has climbed by 2.78% in the past month, exceeding the Oils-Energy sector's gain of 0.92% and the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of Kinder Morgan in its forthcoming earnings report. The company is scheduled to release its earnings on July 22, 2026. The company is predicted to post an EPS of $0.31, indicating a 10.71% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.29 billion, up 6.16% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.49 per share and a revenue of $18.17 billion, signifying shifts of +14.62% and +7.27%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kinder Morgan. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Kinder Morgan is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Kinder Morgan is currently exchanging hands at a Forward P/E ratio of 21.57. Its industry sports an average Forward P/E of 20.36, so one might conclude that Kinder Morgan is trading at a premium comparatively.
We can also see that KMI currently has a PEG ratio of 2.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 1.89 at the close of the market yesterday.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Kinder Morgan (KMI - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this oil and natural gas pipeline and storage company have returned +2.8% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Oil and Gas - Production and Pipelines industry, to which Kinder Morgan belongs, has gained 2.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Kinder Morgan is expected to post earnings of $0.31 per share, indicating a change of +10.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $1.49 for the current fiscal year indicates a year-over-year change of +14.6%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.51 indicates a change of +1.2% from what Kinder Morgan is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinder Morgan is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Kinder Morgan, the consensus sales estimate for the current quarter of $4.29 billion indicates a year-over-year change of +6.2%. For the current and next fiscal years, $18.17 billion and $19.07 billion estimates indicate +7.3% and +4.9% changes, respectively.
Last Reported Results and Surprise HistoryKinder Morgan reported revenues of $4.83 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $0.48 for the same period compares with $0.34 a year ago.
Compared to the Zacks Consensus Estimate of $4.65 billion, the reported revenues represent a surprise of +3.76%. The EPS surprise was +26.32%.
Over the last four quarters, Kinder Morgan surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Kinder Morgan is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinder Morgan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Kinder Morgan remains a 'hold' as upside appears limited despite strong operational performance and a $10B project backlog. KMI's Q1 2026 saw revenue up 13.8% and adjusted operating cash flow rise to $1.83B, with robust growth in Natural Gas Pipelines. Relative valuation is middling; KMI trades at higher multiples than most peers but boasts one of the lowest net leverage ratios.
Výsledková sezóna v USA se tento týden začíná rozbíhat. V centru pozornosti bude především finanční sektor, zejména výsledky velkých amerických bank, jako jsou JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo, Citi či Morgan Stanley. Investoři budou sledovat také výsledky správce aktiv BlackRock. Mimo finance budou důležité také výsledky ze segmentu polovodičů, kde reportují ASML a TSMC. Pozornost investorů přitáhne rovněž Netflix, zatímco zdravotnický sektor zastoupí UnitedHealth Group, Johnson & Johnson, Abbott a Intuitive Surgical.
Přehled vybraných společností reportujících své výsledky v tomto týdnu (zdroj: síť X - Earnings Whispers)
Úterý (14. července) USA (před trhem): JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo, Citi, Fastenal, Ericsson
Středa (15. července) USA (před trhem): Johnson & Johnson, ASML, Morgan Stanley, BlackRock, Progressive, The Bank of New York Mellon, PNC Financial Services, Elevance Health, Cintas, M&T Bank
USA (po trhu): United Airlines, J.B. Hunt Transport Services
Eurozóna (před trhem): ASML
Čtvrtek (16. července) USA (před trhem): UnitedHealth Group, General Electric, Abbott Laboratories, Prologis, U.S. Bancorp, Kinder Morgan, State Street, Citizens Financial Group
USA (po trhu): Netflix, Intuitive Surgical
Evropa (před trhem): ABB, Nordea Bank
Taiwan: TSMC
Pátek (17. července) USA (před trhem): The Travelers, Truist Financial, Fifth Third Bancorp, Regions Financial
Kinder Morgan (KMI - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil and natural gas pipeline and storage company have returned +1.7% over the past month versus the Zacks S&P 500 composite's -1.8% change. The Zacks Oil and Gas - Production and Pipelines industry, to which Kinder Morgan belongs, has gained 1.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Kinder Morgan is expected to post earnings of $0.31 per share for the current quarter, representing a year-over-year change of +10.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
For the current fiscal year, the consensus earnings estimate of $1.49 points to a change of +14.6% from the prior year. Over the last 30 days, this estimate has changed +0.2%.
For the next fiscal year, the consensus earnings estimate of $1.51 indicates a change of +1.2% from what Kinder Morgan is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinder Morgan is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Kinder Morgan, the consensus sales estimate for the current quarter of $4.29 billion indicates a year-over-year change of +6.2%. For the current and next fiscal years, $18.17 billion and $19.07 billion estimates indicate +7.3% and +4.9% changes, respectively.
Last Reported Results and Surprise HistoryKinder Morgan reported revenues of $4.83 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $0.48 for the same period compares with $0.34 a year ago.
Compared to the Zacks Consensus Estimate of $4.65 billion, the reported revenues represent a surprise of +3.76%. The EPS surprise was +26.32%.
Over the last four quarters, Kinder Morgan surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Kinder Morgan is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinder Morgan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Volatility can lower the cost of entry into businesses that throw off real cash, even as investors recognize that a low share price alone is no guarantee of a bargain. Heading into the back half of 2026, three blue-chip names trading well below the $45 mark stand out for the same reason: predictable cash flows, defensive betas, and dividend yields that make Treasury bills look pedestrian. For retail investors scanning headlines and watching their screens flicker red and green, these are the kinds of stocks worth pulling up a chair for.
With that in mind, here are three stocks trading under $45 that combine cheap valuations, durable income, and entrenched competitive moats heading into a choppier market.
Pfizer (NYSE: PFE) Pfizer (NYSE:PFE | PFE Price Prediction) is the global pharmaceutical giant behind blockbusters across oncology, vaccines, primary care, and specialty medicines. At a recent $24.29, well under the $45 ceiling, the stock sits roughly mid-range of its 52-week band of $21.97 to $28.28, giving income-focused buyers an accessible entry into a mega-cap dividend payer.
The fundamentals make the case. Pfizer trades at a trailing P/E of 19 and a forward P/E of 8, with a dividend yield of 7.27% backed by a quarterly payout of $0.43 that has been raised every year for more than a decade. Wall Street’s average price target of $29.15 implies meaningful upside from current levels, with 11 buy or strong buy ratings against 15 holds and three sell-side bears. Q1 2026 results showed revenue of $14.45 billion, up 5.4% year over year, and adjusted EPS of $0.75, marking a fifth consecutive earnings beat.
The bull case rests on three pillars. First, the Vyndamax patent settlement extends U.S. exclusivity to June 2031, defusing the loudest patent cliff fears. Second, launched and acquired products grew 22% operationally in Q1, led by Padcev (+39%), Nurtec ODT (+41%), and Abrysvo (+37%). Third, CEO Albert Bourla pointed to roughly 20 pivotal study starts planned for 2026, including 10 obesity assets from the Metsera acquisition, saying the company is “particularly encouraged by what we’re seeing in oncology and obesity.”
The risk worth respecting is COVID-related revenue erosion, with Comirnaty down 59% and Paxlovid off 62%, plus a $1.5 billion loss-of-exclusivity headwind baked into 2026. Even Jim Cramer recently quipped on Mad Money that with Pfizer, “you’re just buying on that dividend yield.” For value and income investors, that may be exactly the point.
AT&T (NYSE: T) AT&T (NYSE:T) is the converged fiber and 5G wireless operator quietly executing one of the cleaner turnaround stories in large-cap telecom. Shares recently traded at $22.72, down 6.5% year to date, which has compressed the valuation to a level rarely seen in dominant U.S. infrastructure plays.
On the numbers, AT&T trades at a trailing P/E of 8 and a forward P/E of 10, with a dividend yield of 4.95% on a $0.2775 quarterly payout that has held steady since 2022. Analysts carry an average price target of $30.25 with 15 buy or strong buy ratings, 10 holds, and zero sell ratings. Q1 2026 brought revenue of $31.51 billion (+2.9% YoY) and adjusted EPS of $0.57, up 11.8% YoY, including the best Q1 ever for Advanced Connectivity internet net adds at 584,000.
The bull case is operational momentum colliding with capital returns. CEO John Stankey called out the “best first quarter ever for Advanced Connectivity internet customer net additions.” The closed Lumen Mass Markets fiber acquisition on February 2, 2026 pushed reach to 37 million-plus fiber locations, with a target of 60 million by 2030. Management reiterated free cash flow of $18 billion-plus in 2026, $19 billion-plus in 2027, and $21 billion-plus in 2028, and committed to $45 billion-plus in shareholder returns from 2026 through 2028, including roughly $8 billion in buybacks this year.
The risk: leverage. Net debt-to-EBITDA sits at 2.71x and rises toward 3.2x post-EchoStar and Lumen, and legacy wireline revenue is still declining 20%+. Reddit sentiment recently flipped, with r/wallstreetbets discussion turning bearish at scores of 33 to 38 on June 26-27 after running bullish earlier in the month on a congressional trade signal flagged on r/stockmarket. For investors who can stomach the leverage, the fiber flywheel and capital returns make the math interesting.
Kinder Morgan (NYSE: KMI) Kinder Morgan (NYSE:KMI) operates one of the largest natural gas pipeline, products pipeline, terminal, and CO2 networks in North America. Shares recently changed hands at $33.19, up 25.37% year to date and 143.8% over the past five years, but still comfortably under the $45 ceiling and within reach of retail-sized positions.
The setup is rare in midstream: real growth tied to secular demand. KMI trades at a trailing P/E of 22 and a forward P/E of 24, with a dividend yield of 3.56% on a $1.19 annualized payout (+2% YoY). Q1 2026 revenue rose to $4.83 billion (+13.5% YoY), adjusted EPS came in at $0.48 versus the $0.39 estimate, a 22.11% beat, and adjusted EBITDA expanded 18% to $2.54 billion. Wall Street’s average price target of $35.33 and 11 buy ratings to 12 holds and zero sells reflect the durability of the cash flow.
The bull case is direct exposure to two of the most-watched demand curves on the planet: LNG exports and U.S. data center power. Management noted long-term contracts to move 8 Bcf/d to LNG facilities today, growing to 12 Bcf/d by end of 2028, with roughly 70% of future data center power demand sitting in KMI-served states. The project backlog stands at $10.1 billion, with about 92% in natural gas, and Moody’s recently upgraded KMI to Baa1, putting all three agencies at BBB+. CEO Kim Dang attributed Q1 to “record-setting performance in our Natural Gas Pipelines business segment.”
The risk worth tracking is commodity and policy exposure: refined products volumes fell 2% and crude/condensate dropped 12%, and tariff or permitting timing can move the needle on the backlog. But with leverage at a manageable 3.6x net debt-to-EBITDA and natural gas demand projected to grow 17% through 2030, KMI looks like the cleanest pure-play infrastructure beneficiary on the list.
The Bottom Line A share price under $45 does not, on its own, make a stock cheap or safe. What earns these three names a spot on a watch list right now is the combination of betas well below 1.0, durable dividend streams, and entrenched moats that historically hold up when the broader market gets choppy. Before adding any of them to a portfolio, readers should weigh their own time horizon, income needs, and tolerance for sector-specific risk, and do their own research on how each business fits the rest of their holdings.
Key Takeaways Kinder Morgan transports about 40% of U.S. natural gas and has stable, contracted cash flows.Rising LNG exports and gas-fired power demand are driving Kinder Morgan's natural gas growth story.A $10.1B project backlog targets LNG, power generation and utility demand to support cash flows. Kinder Morgan (KMI - Free Report) is a leading energy infrastructure company in North America that transports approximately 40% of U.S. natural gas. The company owns an extensive asset base, including approximately 78,000 miles of pipelines, 136 terminals and more than 700 billion cubic feet (Bcf) of working natural gas storage capacity. While KMI generates stable cash flows, supported by its highly contracted business model, its growth story is backed by the rising demand for natural gas and power consumption in the United States.
The rising demand for natural gas is driven by two major factors – growth in liquefied natural gas (LNG) exports and increasing gas-fired power demand in the U.S. Kinder Morgan’s assets. These assets are well-positioned to support LNG export growth, particularly at the export hubs in Texas and the Louisiana Gulf Coast. Additionally, the expansion of data centers, the retirement of coal-fired power plants, industrial reshoring, population migration and economic growth in the Southern U.S. are resulting in increased electricity consumption, boosting the need for reliable natural gas-fired power generation.
The company’s $10.1 billion project backlog is primarily focused on natural gas infrastructure, with more than 20% directed toward serving the growing LNG demand, whereas about 60% is directed toward power generation and utility demand. This should enable the midstream player to convert these demand trends into stable, predictable cash flows. These trends enhance the strategic value of KMI’s pipeline and storage assets and provide investors with a low-risk path to gain exposure to the structural growth in U.S. natural gas demand.
Energy Sector Players to Benefit From Rising Natural Gas DemandThe rise of data centers and higher gas-fired power demand presents an opportunity for Enbridge Inc. (ENB - Free Report) to capitalize on. Data centers require a huge amount of electricity, which is driving rapid growth in gas demand. The shift from coal to gas for power generation is increasing the demand for gas. Enbridgeis expected to gain from the expansion of its natural gas storage facilities.
Venture Global (VG - Free Report) is one of the largest U.S.-based exporters of liquefied natural gas (LNG) and is currently operating and developing multiple LNG export projects in Louisiana. The company anticipates that the total production capacity across its projects will account for approximately 68 million tons per annum, upon completion, with potential upside from optimization initiatives. Being an LNG export company, VG is expected to benefit from the rise in LNG demand, driven by the expansion of data centers, replacement of coal and the global shift toward lower-emission fuels.
KMI’s Price Performance, Valuation & EstimatesShares of KMI have jumped 14.2% over the past year compared with the 18.7% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 14.47X. This is below the broader industry average of 15.2X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMI’s 2026 earnings hasn’t seen any revisions over the past seven days.
Image Source: Zacks Investment Research
KMI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, Kinder Morgan (KMI - Free Report) was up +1.29% at $33.01. This change outpaced the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.
Heading into today, shares of the oil and natural gas pipeline and storage company had gained 1.15% over the past month, outpacing the Oils-Energy sector's loss of 9.23% and the S&P 500's loss of 1.4%.
Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company's upcoming EPS is projected at $0.31, signifying a 10.71% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.29 billion, indicating a 6.16% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.49 per share and a revenue of $18.17 billion, signifying shifts of +14.62% and +7.27%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. Currently, Kinder Morgan is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 21.83. This signifies a premium in comparison to the average Forward P/E of 17.84 for its industry.
One should further note that KMI currently holds a PEG ratio of 2.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Kinder Morgan offers a nearly 4% dividend yield, underpinned by dominant U.S. natural gas infrastructure and robust cash flow. KMI's $10.1 billion growth backlog, 92% focused on natural gas, is set to deliver multi-decade contracted EBITDA growth at attractive multiples. With a 3.8x net debt/EBITDA ratio and $5.6 billion DCF projected for 2026, KMI can fund dividends and capital projects while maintaining balance sheet strength.
Kinder Morgan remains a "Buy," driven by upside potential in the stock price rather than its dividend yield. KMI's Q1 revenues rose 13.8%, and adjusted EBITDA grew 18%, supported by higher commodity sales and expansion projects. 65% of KMI's cash flow is secured by take-or-pay contracts, providing predictable income amid rising energy demand from AI and data centers.
Income investors heading into the back half of 2026 face a familiar tension: stretched broad-market multiples versus a shrinking pool of stocks that actually grow their dividends through cycles. The classic Dividend Aristocrat screen, 25-plus years of consecutive increases, surfaces the right kind of name. We pair two bona fide Aristocrats with one reliable dividend grower that does not yet qualify, but funds its payout from infrastructure cash flows the way an Aristocrat would.
Johnson & Johnson (NYSE:JNJ) Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) is the cleanest expression of the Aristocrat thesis. The board approved its 64th consecutive annual dividend increase in April, taking the quarterly payout to $1.34 per share, a 3% raise from $1.30, with an ex-date of May 26, 2026 and payment on June 9, 2026.
The fundamentals back the streak. Q1 2026 revenue came in at $24.06 billion, up 10% year over year, and adjusted EPS of $2.70 beat the $2.6773 consensus, marking four consecutive EPS beats. Management raised full-year 2026 guidance to $100.3B–$101.3B in revenue and $11.45–$11.65 in adjusted EPS. Oncology is the engine: DARZALEX hit $3.96 billion (+23%), CARVYKTI $597 million (+62%), and TREMFYA $1.61 billion (+68%), offsetting STELARA’s biosimilar erosion.
Shares at $241.90 trade at a forward P/E of 20 against an analyst target of $252.87. The yield sits at about 2%, lower than the historical average after a 17% YTD run.
Risk: STELARA fell 60% year over year to $656 million, and the company absorbed a $330 million litigation charge in Q1. The planned Orthopaedics separation within 18–24 months adds execution risk.
McDonald’s (NYSE:MCD) McDonald’s (NYSE:MCD) is the contrarian Aristocrat. Shares are down 10% year to date and off 6% over the past week, exactly when high-quality compounders deserve a second look.
The dividend backdrop is rare. Management’s 5% raise declared in October 2025 took the quarterly payout to $1.86 per share, with the most recent payment on June 16, 2026. Q1 2026 results beat on both lines: revenue of $6.52 billion, up 9%, and EPS of $2.83 versus $2.7446 consensus. Global comparable sales rose 4%, against -1% the prior year, with U.S. comps at +4%.
CEO Chris Kempczinski noted: “McDonald’s delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment.” The loyalty program ran trailing-twelve-month sales above $38 billion across 70 markets, a moat most quick-service operators cannot match. McDonald’s returned capital aggressively: 1.3 million shares repurchased for $393 million in Q1 2026 on top of the dividend.
At $273.60, shares trade at a trailing P/E of 22 and yield about 3%, with an analyst target of $331.29. After 49-plus years of consecutive raises, the company is widely expected to be crowned a Dividend King in 2026.
Risk: Interest expense is guided to rise 4–6% in 2026, and restructuring charges from the “Accelerating the Organization” initiative continue through 2027.
Kinder Morgan (NYSE:KMI) Kinder Morgan (NYSE:KMI) is the asterisk pick. It is a reliable dividend grower rather than a true Aristocrat, with roughly 8 to 9 years of increases since the 2015 dividend reset. The case rests on cash flow durability and exposure to two structural tailwinds: LNG exports and data center power demand.
Q1 2026 was a step-change quarter. Revenue of $4.83 billion beat the $4.55 billion consensus, EPS of $0.48 beat the $0.39 consensus, and free cash flow of $687 million was up 73% year over year. Adjusted EBITDA rose 18% to $2.54 billion. The Q1 dividend rose to $0.2975 per share, declared April 22, 2026 and paid May 15, 2026, taking the annualized rate to $1.19, a 2% increase.
CEO Kim Dang highlighted the balance sheet: “We were also pleased this quarter to receive an upgrade from Moody’s, which joined the other two rating agencies in classifying the company as the equivalent of BBB+.” The $10.1 billion project backlog is roughly 92% natural gas, with nearly 60% tied to power generation and LDC demand. Management notes that U.S. natural gas demand is expected to grow 17% through 2030, with LNG feedstock contracts moving from 8 Bcf/d toward 12 Bcf/d by the end of 2028.
At $32.32, KMI yields about 4% on a trailing P/E of 22, after a 23% YTD gain. Per Motley Fool, the company has self-funded capex and dividends for seven consecutive years and generated average free cash flow after dividends of more than $1.04 billion annually over the past five years.
Risk: The Q1 beat was partly weather-driven by winter storm Fern, and refined products volumes fell 2% with crude and condensate down 12%. Permitting delays on the backlog remain the swing factor.
What to Watch Next The setup into the second half is straightforward. JNJ’s Enterprise Business Review on December 8, 2026 will refresh the long-term growth framework. MCD’s next earnings print should test whether the U.S. comp recovery extends past the Q4 2025 +7% spike. KMI’s normalized Q2 results, stripped of winter weather, will show whether the run-rate cash flow trajectory holds. For income-focused portfolios, these are cycle-tested payers worth tracking through year-end.
Key Takeaways Natural gas is expected to supply 40% of U.S. power generation in 2026, per the EIA.Kinder Morgan expects U.S. natural gas demand to rise 27% to 150 Bcf/d by 2031.Natural Gas Services is seeing high fleet utilization, record rental revenue and compression demand. Electricity demand is likely to remain strong, supported by rapidly expanding data centers and growing air-conditioning needs. In the United States, the world’s largest economy, natural gas continues to remain in the spotlight as a key source of power generation.
In this context, let’s take a closer look at two energy players — large-cap Kinder Morgan (KMI - Free Report) and small-cap Natural Gas Services Group, Inc. (NGS - Free Report) — to see whether they offer compelling value.
Natural Gas Dominates U.S. Electricity GenerationNatural gas is a relatively cleaner source of fuel, given its lower emissions of pollutants. Among all the energy sources, natural gas was responsible for 40% of electricity generation in the United States in 2025, per data from the U.S. Energy Information Administration (EIA). In 2026, the proportion will also be 40%, as mentioned in EIA’s latest short-term energy outlook.
By comparison, for this year, the contributions of coal, nuclear, and conventional hydropower are likely to be much lower at 16%, 18%, and 6%, respectively, per EIA’s predictions. Thus, for electricity generation, the United States is still largely dependent on natural gas. Hence, it would be ideal for investors to allocate money toward energy companies that are tied to businesses related to natural gas transportation, compression and production.
Image Source: The U.S. Energy Information Administration
2 Stocks in the Spotlight: KMI, NGSBeing a leading midstream energy company, Kinder Morgan is well-positioned to benefit from the increasing demand for natural gas both in the United States and worldwide. KMI’s assets comprise the largest transportation network of natural gas in the United States and are responsible for transporting roughly 40% of all the gas produced in the domestic market.
KMI, on its first-quarter 2026 earnings call, expressed expectations that U.S. natural gas demand would surge, driven by rising electricity demand from data centers. Kinder Morgan, currently carrying a Zacks Rank #2 (Buy), expects the demand to jump 27% to 150 billion cubic feet per day by 2031 from this year's level. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growing natural gas consumption for U.S. electricity generation could lead to higher production and greater transportation of gas through energy infrastructure. This should support #2 Ranked Natural Gas Services, as its compression equipment helps gas flow through the system, while the company has also pointed to rising production and midstream expansion as drivers of stronger compression demand.
NGS appears well placed to benefit from this trend. Its fleet is already seeing high utilization and record rental revenue, and the company continues to add large-horsepower units backed by long-term contracts. The Flatrock acquisition further expands its compression capacity and improves its presence in major producing regions, including the Permian and Eagle Ford.
Key Takeaways VLO has rallied 47.4% in six months, outpacing KMI's 18.3% gain amid stronger refining fundamentals.Valero benefits from discounted heavy crude, tight global refining capacity and low product inventories.KMI offers stability, with 96% of cash flows take-or-pay, fee-based or hedged against volatility. Valero Energy Corporation (VLO - Free Report) and Kinder Morgan (KMI - Free Report) are two leading players in the energy industry with contrasting business operations. KMI is a midstream energy player that owns and operates a vast storage and transportation network, comprising nearly 78,000 miles of pipelines, 136 terminals and over 700 billion cubic feet of natural gas storage capacity.
On the other hand, Valero Energy is a leading firm in the downstream sector, with an extensive refining footprint. Notably, VLO operates a network of 14 refineries with approximately 3 million barrels per day of high-complexity throughput capacity. Its combined Nelson Complexity Index of 11.5 indicates that the company can process and refine a wide variety of feedstocks into higher-value products.
Over the past six months, VLO shares have rallied 47.4%, outperforming KMI’s 18.3% gain. Price performance alone does not fully indicate a stock’s attractiveness or strength, as it merely reflects investor sentiment across market cycles. Hence, it is necessary to assess the fundamentals and broader operating environment of both stocks before arriving at an investment decision.
Image Source: Zacks Investment Research
Valero Benefits From Heavy Crude Discounts & Refining FundamentalsValero Energy stands out as a premier refining operator with an advantaged refining portfolio mainly concentrated in the U.S. Gulf Coast. This enables the company to benefit from access to discounted heavy crude, export infrastructure and exposure to global product markets.
In its first-quarter earnings call, VLO mentioned that the supply of incremental heavy crude barrels from Venezuela led to wider crude differentials. This trend was further amplified during the Middle East crisis, as certain heavy crude grades, including Canadian heavy crude, began trading at deeper discounts, and its Gulf Coast refining network enabled it to take advantage of discounted heavy sour barrels. This is expected to act as a tailwind for its refining business moving into the second quarter.
Additionally, its complex refining system is capable of processing heavy sour grades into high-value refined products efficiently. The flexibility of Valero’s refinery systems allows it to shift product yields between light products and distillates based on market signals to capture higher margins during volatile periods. This gives the refining player a competitive edge, as it can shift its production toward higher-margin products.
The macroeconomic backdrop also remains favorable. Management noted that global refining capacity remains constrained and the global demand is expected to surpass new capacity additions by year-end. The recent conflict has made this tightening even more pronounced by disrupting global energy flows. Moreover, low product inventories in key markets are expected to support refining fundamentals and keep margins steady.
Natural Gas Demand Growth Strengthens Kinder Morgan’s OutlookKinder Morgan offers a compelling investment case by providing a low-risk path to gain exposure to the structural growth in U.S. natural gas demand. The company combines an extensive natural gas infrastructure footprint, highly contracted cash flows, a large and attractive growth backlog, and growing shareholder returns. KMI’s large natural gas transmission network transports approximately 40% of the U.S. natural gas production.
The natural gas growth story is supported by strong energy market fundamentals, including rising LNG exports and power demand. Kinder Morgan’s assets are well-positioned to support growth in LNG exports, particularly along the export hubs in Texas and the Louisiana Gulf Coast. KMI already has long-term contracts to move 8 billion cubic feet per day (Bcf/d) to LNG facilities and expects this figure to surpass 12 Bcf/d by the end of 2028. More than 20% of the company’s $10.1 billion contracted project backlog is directed toward serving LNG demand, and management indicated that it is actively pursuing additional opportunities.
Additionally, growing gas-fired power demand is creating incremental demand for natural gas, creating an opportunity for KMI to capitalize on. Kinder Morgan highlighted that about 60% of its $10.1 billion contracted project backlog is directed toward power generation and utility demand. The company is actively pursuing projects to serve more than 10 Bcf/d of additional natural gas demand in the power sector. Additionally, the expansion of data centers, the replacement of coal-fired power plants and population migration and growth in the Southern U.S. are expected to enhance the strategic value of KMI’s pipeline and storage assets.
Moreover, as a leading player in the midstream space, Kinder Morgan generates stable and predictable cash flows. KMI has highlighted that 96% of its cash flows are either take-or-pay, fee-based or hedged. Notably, 65% of cash flows are tied to take-or-pay contracts and 26% of the cash flow mix comes from fee-based contracts. Only 4% of its total cash flows are unhedged and are exposed to commodity price volatility. This enables the company to remain resilient and maintain competitive shareholder returns through business cycles.
Image Source: Kinder Morgan Inc.
Valuation SnapshotConsidering the valuation snapshot, it has become evident that Valero Energy is currently trading at a discount compared with Kinder Morgan. This is reflected in the fact that VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.25X, below KMI’s 13.96X.
Image Source: Zacks Investment Research
VLO vs KMI: Should You Buy or Wait?VLO and KMI have contrasting business models and, consequently, offer different strengths. VLO offers stronger upside potential in the current environment due to constrained refining capacity globally and its strategic advantage of shifting product yields based on market signals to capture higher margins. Meanwhile, Kinder Morgan provides greater business stability through contracted cash flows and a low-risk way to participate in the natural gas growth story.
Both VLO and KMI carry a Zacks Rank #2 (Buy). However, VLO is trading at a more attractive valuation, making it a better choice for investors at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kinder Morgan (KMI - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this oil and natural gas pipeline and storage company have returned -5.7%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Oil and Gas - Production and Pipelines industry, which Kinder Morgan falls in, has lost 4.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Kinder Morgan is expected to post earnings of $0.31 per share, indicating a change of +10.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.49 points to a change of +14.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.51 indicates a change of +1.2% from what Kinder Morgan is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinder Morgan is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Kinder Morgan, the consensus sales estimate of $4.29 billion for the current quarter points to a year-over-year change of +6.2%. The $18.17 billion and $19.07 billion estimates for the current and next fiscal years indicate changes of +7.3% and +4.9%, respectively.
Last Reported Results and Surprise HistoryKinder Morgan reported revenues of $4.83 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $0.48 for the same period compares with $0.34 a year ago.
Compared to the Zacks Consensus Estimate of $4.65 billion, the reported revenues represent a surprise of +3.76%. The EPS surprise was +26.32%.
Over the last four quarters, Kinder Morgan surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Kinder Morgan is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinder Morgan. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
