Latest news with #KMI
Yahoo
2 hours ago
- Business
- Yahoo
Kinder Morgan Earnings Preview: What to Expect
Houston, Texas-based Kinder Morgan, Inc. (KMI) is an energy infrastructure company that serves as a critical midstream provider of natural gas, refined petroleum products, crude oil, carbon dioxide, and more. Valued at a market cap of $64.2 billion, the company plays a vital role in ensuring the safe, efficient, and reliable transportation and storage of energy across vast distances in North America. It is scheduled to announce its fiscal Q2 earnings for 2025 on Wednesday, Jul. 16. Ahead of this event, analysts expect this energy infrastructure company to report a profit of $0.27 per share, up 8% from $0.25 per share in the year-ago quarter. The company has missed Wall Street's earnings estimates in three of the last four quarters, while meeting or surpassing on another occasion. In Q1, KMI's EPS of $0.34 fell short of the forecasted figure by 2.9%. How High Can Middle East Turmoil Drive Crude Oil Prices? Nat-Gas Prices Fall to 6-month Low on Bearish EIA Report and Cooler Temps Dollar Weakness and Stock Strength Push Crude Oil Prices Higher Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2025, analysts expect KMI to report a profit of $1.26 per share, up 9.6% from $1.15 per share in fiscal 2024. Its EPS is expected to further grow 7.9% year-over-year to $1.36 in fiscal 2026. Kinder Morgan has rallied 46.4% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 12.1% rise, and the Energy Select Sector SPDR Fund's (XLE) 5.3% downtick over the same time frame. On Apr. 16, shares of KMI plunged 1% after its Q1 earnings release. Due to a favorable natural gas landscape, reflected by record Q1 U.S. demand, the company's revenue grew 10.4% year-over-year to $4.2 billion. Furthermore, its project backlog also reflects this strong natural gas demand. It grew to $8.8 billion at the end of Q1 2025, up from $8.1 billion in the previous quarter, with approximately 91% of the backlog tied to natural gas projects. However, on the downside, its adjusted EPS of $0.34 remained flat compared to the year-ago quarter and missed the consensus estimates by a penny. This earnings miss might have dampened investor confidence. Wall Street analysts are moderately optimistic about KMI's stock, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, seven recommend "Strong Buy," one suggests a 'Moderate Buy,' and nine indicate 'Hold.' The mean price target for KMI is $31.40, which indicates an 8.7% potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Globe and Mail
a day ago
- Business
- Globe and Mail
Kinder Morgan Surpasses Industry Gains: What Investors Should Know
Shares of Kinder Morgan, Inc. KMI have gained 45.4% in the past year, outperforming the oil-energy sector's gain of 26.5% and the S&P 500's gain of 11.3%. The company has a market capitalization of $63 billion. The company also outperformed its peers, such as MPLX LP MPLX and Enbridge, Inc. ENB, which have gained 20.3% and 26.7%, respectively, over the same time frame. Positive Outlook on KMI's Growth Trajectory The Zacks Consensus Estimate for KMI's 2025 earnings is pegged at $1.26, implying a year-over-year improvement of 9.6%. The consensus estimate for KMI's 2025 revenues is pegged at $16.5 billion, implying a year-over-year improvement of 9.4%. Kinder Morgan's earnings grew 4.9% in the last five years, better than the industry average of 4.4%. Long-term earnings growth is expected to be 7.2%, better than the industry average of 6.7%. Average Target Price for KMI Suggests Upside Based on short-term price targets offered by 15 analysts, the Zacks average price target is $31.40 per share. The average suggests a 10.9% upside from the last closing price. Factors to Consider Kinder Morgan presents a compelling investment case grounded in stable cash flows, strategic natural gas infrastructure, and forward-looking capital deployment. At the core of its financial model is a highly predictable earnings stream, approximately 95% of its 2025 budgeted cash flow comes from take-or-pay, fee-based, or hedged contracts. This structure protects the company against commodity price volatility and volume fluctuations. The take-or-pay model, which accounts for 64% of the total, ensures payment from counterparties regardless of actual throughput, while the fee-based and hedged arrangements further stabilize revenue. This setup supports Kinder Morgan's robust 2025 financial guidance of $5.2 billion in distributable cash flow and $1.27 billion in adjusted earnings per share, indicating 10% and 4% year-over-year growth in EPS and EBITDA, respectively. Strategically, Kinder Morgan is deeply embedded in the U.S. natural gas market, which is projected to experience significant growth through the end of the decade. Demand is expected to rise by 20-28 billion cubic feet per day (bcfd) by 2030, largely driven by LNG exports, power generation needs (especially as coal retires), and increased industrial usage. The company is positioned to benefit directly from this surge, with long-term contracts already in place. Kinder Morgan's footprint is particularly strong in Texas and Louisiana, regions anticipated to account for over 95% of total U.S. demand growth in this timeframe. The company's dominant position in natural gas transportation is a key differentiator. Kinder Morgan owns and operates 66,000 miles of natural gas pipelines, which move around 40% of U.S. production. It also controls over 700 billion cubic feet of working storage, accounting for 15% of national capacity. The scale of this infrastructure not only supports efficient delivery to high-demand markets, including power plants and export terminals, but also provides operational leverage and competitive moat advantages. Kinder Morgan is also actively participating in the broader energy transition. Through its Energy Transition Ventures group, it is building a portfolio of renewable natural gas (RNG) assets with 6.4 bcf of annual production capacity and is evaluating carbon capture and storage (CCS) opportunities. These investments leverage its existing pipeline expertise and position it to serve emerging low-carbon markets. Furthermore, approximately $8 billion of its current capital project backlog includes components related to lower-carbon initiatives such as RNG and CCS. Lastly, the company has demonstrated a strong commitment to sustainability and governance. It received an MSCI ESG rating upgrade to AAA in 2024 and ranks among the top performers in its industry according to Sustainalytics, FTSE, and Refinitiv. Operationally, it has achieved an ~8% reduction in methane emissions since 2021 and surveys 100% of its natural gas compressor stations every quarter. These practices, alongside improved board diversity and employee safety metrics, reinforce Kinder Morgan's positioning as a responsible infrastructure operator. Risks One key risk factor for Kinder Morgan is its partial exposure to commodity price volatility, particularly within its Enhanced Oil Recovery (EOR) operations and certain natural gas Gathering & Processing (G&P) projects. While 95% of KMI's cash flows are secured through take-or-pay, fee-based, or hedged structures, around 5% remain unhedged, making them sensitive to market fluctuations. The EOR segment, in particular, generates revenue based on oil prices and production volumes, which can lead to earnings variability during periods of commodity price weakness. Hence, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
Scotiabank Raises PT on Kinder Morgan (KMI), Maintains Sector Perform Rating
Kinder Morgan, Inc. (NYSE:KMI) is one of the 10 AI stocks that Jim Cramer and analysts are watching. On June 5, Scotiabank raised its price target on KMI shares to $27 from $26 and maintained a Sector Perform rating. The firm is updating its target valuation year to 2027 and has introduced estimates for 2028 for U.S. Midstream sector stocks. The analyst noted that units are still expected to trade within a range, with few catalysts anticipated in the near term. On June 4, BofA raised its price target on KMI to $32 from $30 and reiterated a Buy rating. The analyst stated that the outlook for gas pipelines 'continues to brighten' despite recent market volatility. Kinder Morgan and DT Midstream remain the firm's top midstream picks. The firm noted increased activity across the gas midstream space this year, citing policy changes under the Trump administration that have eased pipeline development, especially in Appalachia. Utilities are expected to require gas infrastructure through the 2030s and are showing greater willingness to invest. Additional factors include the lifting of the LNG permit pause and interest from countries aiming to narrow trade deficits. Aerial view of an oil and gas pipeline, spanning vast landscapes. Moreover, on June 6, when a caller asked Cramer about the company, he said, 'Kinder Morgan's good. Kinder Morgan's good. You know… The company got it together. Anything in the pipeline is just working.' Kinder Morgan (NYSE:KMI) operates energy infrastructure assets that support the transport, storage, processing, and handling of natural gas, petroleum products, and carbon dioxide. The company also owns and operates facilities related to liquefied natural gas, including gasification, liquefaction, and storage. During the company's Q1 2025 earnings call, management reiterated their positive outlook on long-term natural gas demand, both in the U.S. and globally and noted that this view has gained broader acceptance among investors and analysts over the past year, especially with growing interest in natural gas as a fuel source for AI and data centers. Furthermore, management confirmed that they are actively working to supply upcoming data centers. Chief Executive Officer Kimberly Allen Dang mentioned that roughly 70% of new backlog additions in the quarter were tied to power demand, which may be connected to data centers. She mentioned that most of the current activity linked to data centers has come through regulated utilities. While we acknowledge the potential of KMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
This Energy Infrastructure Company Boasts Stable Cash Flows and Solid Dividends
Kinder Morgan, Inc. (NYSE:KMI) is one of the 12 Best Natural Gas Stocks to Buy According to Analysts. Kinder Morgan, Inc. (NYSE:KMI) makes its money typically by charging fees for use of the capacity of its pipelines, terminals, and other assets. The company boasts very stable cash flows, as around 95% of its earnings come from predictable sources like take-or-pay agreements, fee-based contracts, or commodity price hedges. Aerial view of an oil and gas pipeline, spanning vast landscapes. Kinder Morgan, Inc. (NYSE:KMI) maintains a robust balance sheet, ending Q1 2025 with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times. It also generated cash flow from operations of $1.2 billion and $0.4 billion in free cash flow after capital expenditures. The company is targeting to generate about $5.9 billion in cash flow from operations this year, up 5% from 2024. Kinder Morgan, Inc. (NYSE:KMI) remains committed to its shareholders and paid dividends of around $650 million in the first quarter of 2025. The company recently announced a quarterly dividend of $0.2925 per share for Q1, up 2% YoY and marking the eighth straight year that Kinder Morgan has increased its payouts. With an annual dividend yield of 4.18%, KMI was recently included in our list of the 10 Energy Stocks with Fat Dividends. Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. With approximately 66,000 miles of pipelines, the company transports approximately 40% of the natural gas produced in the United States. While we acknowledge the potential of KMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None. Sign in to access your portfolio
The Sun
5 days ago
- Sport
- The Sun
Premier League refereeing errors fall to all-time LOW as worst-hit team revealed – and it's not Arsenal
REFEREEING errors fell to an all-time low in the Premier League last season - despite a series of controversies. According to the Prem 's 'Key Match Incident Panel' - made up of former players, managers and refs - there were just 18 VAR errors over the 380 matches of the 2024-25 campaign. 6 6 6 That was a 42 per cent drop on the 31 errors in 2023-24 and further down on the 35 mistakes assessed in the previous campaign. The panel looks at every major decision on goals, penalties and red cards, determining if the call by the onfield officials or the VAR was correct or flawed. SunSport understands the reduction was largely down to fewer missed VAR interventions on subjective decisions, although there were occasions in which Stockley Park wrongly recommended a change of call. Missed interventions included the red cards for Manchester United skipper Bruno Fernandes against Spurs, Arsenal left-back Myles Lewis-Skelly's dismissal at Wolves and the last minute penalty winner for West Ham that spelled the end for Old Trafford boss Erik ten Hag. The KMI ruled that the VAR should have stepped in to recommend red cards for Brighton's Joao Pedro against Brentford and Everton 's James Tarkowski in the final Goodison Merseyside derby. Brentford were the biggest sufferers, with three mistakes which should have been changed in their favour, with Everton the beneficiaries of three errors. There were a number of occasions in which the KMI Panel agreed that the on-field decision was wrong but did not meet the threshold for a VAR intervention. The numbers will doubtless be met with disbelief from Arsenal fans who remain insistent that PGMOL have an agenda against them. JOIN SUN VEGAS: GET £50 BONUS But the costly second yellow cards for Declan Rice and Leandro Trossard against Brighton and Manchester City respectively did not come under the scrutiny of the Panel. Changes to time-keeping last season saw an average of nine minutes and 45 seconds of stoppage time per game, down 108 seconds from the previous season. The campaign saw 105 added time goals across the 380 matches, 40 fewer than in 2023-24. But VAR checks were significantly speeded up, with the average delay per match due to VAR down to 39 seconds from 64 seconds in the previous season. 6 6 6
