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 $62.4 billion, Kinder Morgan operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments.
The energy sector giant has significantly outperformed the broader market over the past year. Over the past 52 weeks, KMI stock has soared 33.4% compared to the S&P 500 Index’s ($SPX) 14.5% returns. However, in 2025, KMI gained 2.6%, lagging behind SPX’s 6.1% gains on a YTD basis.
Narrowing the focus, KMI has also outperformed the industry-focused USCF Midstream Energy Income Fund’s (UMI) 18% surge over the past year and 2.1% uptick in 2025.
In Q2 2025, the company’s revenues came far ahead of Street expectations. Kinder Morgan’s topline grew 13.2% year-over-year to $4 billion, beating the expectations by 7.8%. Its results benefited from a positive federal regulatory environment and support in the form of permits. Adjusted net income came in at $619 million, up 13% year-over-year. Further, its adjusted EPS of $0.28 met the consensus estimates. However, free cash flows dropped 9.4% year-over-year to $1 billion, which likely contributed to a 1.5% drop in KMI stock prices in the trading session following its earnings release on Jul. 16.
For the full fiscal 2025, ending in December, analysts expect KMI to deliver an adjusted EPS of $1.27, up 10.4% year-over-year. However, the company has a poor earnings surprise history. While it met the Street’s bottom-line estimates once over the past four quarters, it has missed the projections on three other occasions.
The KMI stock has a consensus “Moderate Buy” rating overall. Of the 18 analysts covering the stock, opinions include nine “Strong Buys,” one “Moderate Buy,” and eight “Holds.”
This configuration is notably more bullish than a month ago, when only seven analysts gave “Strong Buy” recommendations.
On Jul. 25, Wolfe Research analyst Keith Stanley upgraded KMI to “Outperform” and set a price target of $31.
KMI’s mean price target of $31.76 suggests a 13% upside potential. Meanwhile, the Street-high target of $38 represents a substantial 35.2% premium to current price levels.
On the date of publication, Aditya Sarawgi 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. For more information please view the Barchart Disclosure Policy here.
