Kinder Morgan, Incorporated (KMI) is one of North America's largest energy infrastructure companies, headquartered in Houston, Texas. Founded in 1997 by Richard D. Kinder and William V. Morgan, the company operates approximately 79,000 miles of pipelines and 139 terminals across the U.S. and is currently valued at a market capitalization of $59.6 billion.
Shares of KMI have considerably surpassed the broader market over the past year. KMI has gained 45.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.3%. In 2025, KMI has dropped 2.1%, compared to $SPX’s 3.3% decline.
Narrowing the focus, KMI has also outperformed the S&P 500 Energy Sector SPDR Fund (XLE). The exchange-traded fund has dipped 11.4% over the past year and 4.3% this year
On Apr. 16, Kinder Morgan reported its Q1 2025 financial results, and its shares dipped marginally. The company's revenue was $4.24 billion, surpassing analyst expectations of $4.08 billion. However, its adjusted EPS came in at $0.34, slightly below the anticipated $0.35.
On the bright side, 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 over 2024. It also announced a 2% increase in its quarterly dividend to $0.2925 per share, or $1.17 annualized.
For the current year, ending in December, analysts expect KMI’s EPS to increase 8.7% year over year to $1.25. The company’s earnings surprise history is mixed. It met the consensus estimate in one of the last four quarters while missing the projections on three other occasions.
Kinder Morgan’s stock has a consensus “Moderate Buy” rating. Out of 17 analysts covering the stock, seven rate it as a "Strong Buy," one suggests a "Moderate Buy," and nine say "Hold."
This configuration is slightly more bullish than three months before, with six analysts recommending a “Strong Buy” rating.
On April 29, RBC Capital increased its price target for Kinder Morgan from $27 to $28, maintaining a "Sector Perform" rating. This adjustment follows Kinder Morgan's first-quarter earnings. RBC Capital views this robust backlog and Kinder Morgan's strong balance sheet as indicators of the company's solid positioning for long-term growth, despite near-term economic uncertainties.
The mean price target of $31 suggests a 15.5% premium to KMI’s current price levels. Moreover, the Street-high target of $38 suggests an impressive upside potential of 41.6%.
