Houston, Texas-based Kinder Morgan, Inc. (KMI) is a midstream energy infrastructure provider in North America. The company operates pipelines to transport natural gas, crude oil, condensate, refined petroleum products, and more. With a market cap of $60.2 billion, Kinder Morgan operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Kinder Morgan fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the oil & gas midstream industry. The company owns and operates approximately 82,000 miles of pipelines and 139 terminals.
Kinder Morgan recently touched its five-year-high of $28.81 on Nov. 22 and is currently trading 6.7% below that peak. KMI stock prices have surged 27.3% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 8.6% gains during the same time frame.
Over the longer term, Kinder Morgan’s performance looks even more impressive. KMI has soared over 52.4% on a YTD basis and 51.9% over the past 52 weeks, outperforming DOWI’s 17.4% gains in 2024 and 22.1% returns over the past year.
To confirm the bullish trend, KMI has consistently traded above its 200-day moving average since mid-February and above its 50-day moving average since the start of March with minor fluctuations.
Kinder Morgan’s stock prices observed a marginal dip in the trading session after the release of its Q3 earnings on Oct. 16 as the company missed Wall Street’s topline and earnings expectations. Kinder Morgan’s financials took a hit during the quarter due to the lackluster performance of its Products Pipeline segment impacted by lower commodity prices and CO2 segment which was primarily impacted by lower crude volumes and higher power costs. This resulted in a 5.3% year-over-year revenue decline to $3.7 billion.
Despite the headwinds in its product pipeline and CO2 segments, the company showcased impressive expense discipline. Its adjusted net margin expanded 67 basis points compared to the year-ago quarter to 15.1%, which resulted in its adjusted EPS remaining flat at $0.25.
Kinder Morgan has lagged behind its peer Targa Resources Corp.’s (TRGP) 113.4% gains on a YTD basis and 114.1% returns over the past year.
Among the 18 analysts covering the KMI stock, the consensus rating is a “Moderate Buy.” As of writing the stock is trading slightly above its mean price target of $26.62.
