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Kinder Morgan: A
Dhierin Bechai · 2026-06-24 · via All Articles on Seeking Alpha

Summary

  • Kinder Morgan remains a "Buy," driven by upside potential in the stock price rather than its dividend yield.
  • KMI's Q1 revenues rose 13.8%, and adjusted EBITDA grew 18%, supported by higher commodity sales and expansion projects.
  • 65% of KMI's cash flow is secured by take-or-pay contracts, providing predictable income amid rising energy demand from AI and data centers.
  • My $35.63 price target reflects 5% annual EBITDA growth, but capital expenditures are peaking, pressuring near-term free cash flow.
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Oil price and world energy crisis, petroleum demand concept : Faucet or a valve on the main gas or crude oil pipeline with the American Flag and Benjamin Franklin"s portrait on US USD 100 dollar bill.

William_Potter/iStock via Getty Images

Kinder Morgan, Inc. (KMI) is one of the companies that I like, driven by their exposure to natural gas and the business set-up that it has as a midstream company, with the bulk of its EBITDA being covered by capacity lease

Analyst’s Disclosure: I/we have a beneficial long position in the shares of KMI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.