Kinder Morgan Reports Solid Growth Amid Market Challenges

Kinder Morgan, Incorporated (KMI), headquartered in Houston, Texas, stands as one of North America’s largest energy infrastructure firms. Established in 1997 by Richard D. Kinder and William V. Morgan, the company operates around 79,000 miles of pipelines and 139 terminals across the U.S., boasting a market capitalization of $59.6 billion.

Stock Performance Overview

Over the past year, KMI’s shares have remarkably outperformed the broader market. The company’s stock has risen 45.3%, while the S&P 500 Index ($SPX) has increased by only 12.3%. However, in 2025, KMI’s shares have seen a slight decrease of 2.1%, compared to a 3.3% decline in the S&P 500.

Quarterly Financial Results

On April 16, Kinder Morgan announced its Q1 2025 financial results, which led to a minor dip in its share price. Revenue reached $4.24 billion, exceeding analyst expectations of $4.08 billion. However, the adjusted earnings per share (EPS) came in at $0.34, slightly below the forecast of $0.35.

Growth Prospects

Notably, Kinder Morgan added $900 million in new growth projects during the quarter, bringing its total project backlog to $8.8 billion. The company reaffirmed its full-year 2025 adjusted EPS guidance of $1.27, reflecting an 8% increase from 2024. Additionally, a 2% increase in its quarterly dividend to $0.2925 per share was announced, equating to an annualized rate of $1.17.

Analyst Expectations

For the year ending in December, analysts forecast an 8.7% year-over-year increase in KMI’s EPS, reaching $1.25. However, Kinder Morgan’s earnings surprise history is varied, having met consensus estimates once in the last four quarters while missing projections on three occasions.

Analyst Ratings and Price Targets

KMI’s stock holds a consensus “Moderate Buy” rating. Among 17 analysts, seven classify it as a “Strong Buy,” one as a “Moderate Buy,” and nine recommend a “Hold.” This rating is slightly more optimistic than three months ago when only six analysts had a “Strong Buy” recommendation.

On April 29, RBC Capital raised its price target for KMI from $27 to $28 while maintaining a “Sector Perform” rating. This change follows Kinder Morgan’s first-quarter earnings report. RBC believes the strong backlog and solid balance sheet position Kinder Morgan well for long-term growth despite current economic uncertainties.

The average price target of $31 indicates a potential 15.5% upside from KMI’s current price levels, with the highest target of $38 suggesting a significant upside potential of 41.6%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The opinions expressed here are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.