Latest news with #KinderMorgan
Yahoo
2 days ago
- Business
- Yahoo
Kinder Morgan (NYSE:KMI) Will Pay A Dividend Of $0.2925
The board of Kinder Morgan, Inc. (NYSE:KMI) has announced that it will pay a dividend on the 15th of August, with investors receiving $0.2925 per share. This means the dividend yield will be fairly typical at 4.2%. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Kinder Morgan's Payment Could Potentially Have Solid Earnings Coverage We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Based on the last payment, the company wasn't making enough to cover what it was paying to shareholders. It will be difficult to sustain this level of payout so we wouldn't be confident about this continuing. The next year is set to see EPS grow by 29.0%. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 73% which would be quite comfortable going to take the dividend forward. Check out our latest analysis for Kinder Morgan Dividend Volatility While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. Since 2015, the annual payment back then was $1.76, compared to the most recent full-year payment of $1.17. Doing the maths, this is a decline of about 4.0% per year. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. Kinder Morgan's Dividend Might Lack Growth Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. It's encouraging to see that Kinder Morgan has been growing its earnings per share at 77% a year over the past five years. While EPS is growing rapidly, Kinder Morgan paid out a very high 95% of its income as dividends. If earnings continue to grow, this dividend may be sustainable, but we think a payout this high definitely bears watching. The Dividend Could Prove To Be Unreliable Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. Strong earnings growth means Kinder Morgan has the potential to be a good dividend stock in the future, despite the current payments being at elevated levels. We don't think Kinder Morgan is a great stock to add to your portfolio if income is your focus. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 2 warning signs for Kinder Morgan that investors should know about before committing capital to this stock. Is Kinder Morgan not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
This Oil and Gas Stock is Famous for its Stable Cash Flows and High Payouts
Kinder Morgan, Inc. (NYSE:KMI) is included among the 12 Best Oil and Gas Dividend Stocks to Buy Now. Aerial view of an oil and gas pipeline, spanning vast landscapes. Kinder Morgan, Inc. (NYSE:KMI) paid dividends of $650 million in the first quarter of 2025, and also increased its quarterly dividend by 2% YoY to $0.2925 per share, marking the eighth straight year that Kinder Morgan has grown its payouts. Kinder Morgan, Inc. (NYSE:KMI) is known for its stable cash flows, 64% of which are backed by take-or-pay contracts, which entitle the company to payment regardless of volume. Moreover, the company is targeting to increase its annual cash flows by 5% YoY to $5.9 billion in 2025, which should be more than sufficient to cover its expected $2.6 billion dividend outlay. Moreover, Kinder Morgan, Inc. (NYSE:KMI) also boasts a hefty project backlog of $8.8 billion, which should add to its stable sources of cash flow going forward. Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company has an interest in or operates approximately 79,000 miles of pipelines and 139 terminals. While we acknowledge the potential of KMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and The 5 Energy Stocks Billionaires are Quietly Piling Into. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Kinder Morgan price target raised to $28 from $27 at Scotiabank
Scotiabank analyst Brandon Bingham raised the firm's price target on Kinder Morgan (KMI) to $28 from $27 and keeps a Sector Perform rating on the shares. While the company's recently reported consolidated adjusted EBITDA was in-line, Products and CO2 underperformed expectations while Natural Gas and Terminals exceeded expectations, the analyst tells investors. Scotiabank believes Haynesville is first set to meet the LNG ramp, but notes it expects more muted volume profits through 2H25 into 2026. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on KMI: Disclaimer & DisclosureReport an Issue Kinder Morgan's Earnings Call Highlights Growth and Optimism Kinder Morgan price target raised to $34 from $33 at Wells Fargo Kinder Morgan's Strong Financial Position and Growth Potential Drive Buy Rating Kinder Morgan's Strategic Expansions and Project Backlog Boost Buy Rating Kinder Morgan Reports Strong Q2 2025 Earnings Growth Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Kinder Morgan (KMI) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2025, Kinder Morgan (KMI) reported revenue of $4.04 billion, up 13.2% over the same period last year. EPS came in at $0.28, compared to $0.25 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.88 billion, representing a surprise of +4.11%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.28. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Kinder Morgan performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Realized weighted average oil price: $/67.6 compared to the $/66.45 average estimate based on two analysts. Terminals - Bulk transload tonnage: 12.80 MMTon versus 12.76 MMTon estimated by two analysts on average. Terminals - Liquids leasable capacity: 78.70 MMBBL versus the two-analyst average estimate of 78.68 MMBBL. Realized weighted average NGL price: $/32.08 compared to the $/30.26 average estimate based on two analysts. Segment EBDA- Products Pipelines: $289 million compared to the $292.43 million average estimate based on three analysts. Segment EBDA- Terminals: $300 million versus $276.23 million estimated by three analysts on average. Segment EBDA- Natural gas Pipelines: $1.44 billion versus the two-analyst average estimate of $1.32 billion. Segment EBDA- CO2: $150 million compared to the $178.58 million average estimate based on two analysts. View all Key Company Metrics for Kinder Morgan here>>> Shares of Kinder Morgan have returned -0.3% over the past month versus the Zacks S&P 500 composite's +5.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Kinder Morgan kicks off oil and gas earnings season with a bullish outlook, in part thanks to thirsty data centers
While most of the nation's power focus is on servicing the rise of data centers and AI, the biggest driver of natural gas demand is exports and the rapid buildout of liquefied natural gas terminals to supply the world. Houston-based Kinder Morgan (No. 289 in the Fortune 500) is leading the charge with a handful of other developers to rapidly build the needed natural gas pipelines throughout the country to supply both the surging LNG and data center sectors and to avoid having pipelines create a bottleneck for growth. Kinder Morgan co-founder and executive chairman Rich Kinder kicked off earnings season for the oil and gas industry after market close July 16 with his bullishness on global gas demand, which is why the company has added about $6 billion in projects costs to its now-$9.3 billion project backlog in the past 12 months. The industry is focusing a lot on 'rapidly growing demand in America,' Kinder said. 'But as we all know, the gas market is international in nature, and a great deal of the growth potential for U.S. production is driven by that worldwide increase in demand.' He cited projections from Exxon Mobil and the U.S. Department of Energy—dating back to the Biden administration last year—that estimated global gas demand could easily surge by 25% or so from now until 2050, even as renewable energy growth keeps soaring, led by growing populations and wealth in Asia and Africa. Natural gas must be liquefied for export overseas, which has triggered the massive race to build out LNG facilities, especially along the Texas and Louisiana Gulf Coast. The U.S. is producing more gas than it can consume domestically because of the shale gas boom that kicked off 20 years ago. In fact, the U.S. used to be an LNG importer. 'It will be LNG which will satisfy the bulk of this additional demand, and I think it will grow faster than the overall demand for natural gas,' Kinder said in the earnings call. Rising supplies and demand The U.S. produced 103.5 billion cubic feet per day (Bcf/d) of gas on average in 2024, more than doubling U.S. natural gas volumes in 20 years. That's already on the rise in 2025, up to 107.2 Bcf/d for the month of April, according to the Energy Department. Although crude oil pricing and production volumes have stagnated, the gas side of the industry keeps growing. North America's LNG export capacity is on track to more than double between 2023 and 2028, from 11.4 Bcf/d in 2023 to 24.4 Bcf/d in 2028, according to the Energy Department, and continue growing well into the 2030s, eventually tripling capacity from the 2023 baseline. The U.S. has led the world in gas production for 15 years and, for just more than two years, now exports the most LNG, having surpassed Qatar. Kinder Morgan aims to move much of that gas from the shale fields to the LNG facilities and data centers. Already, Kinder Morgan helps move 40% of all the U.S. natural gas produced. 'When you add the international LNG growth to the robust need for gas to satisfy U.S. domestic power and industrial demand…it signals to me that the positive natural gas story has legs and will last for decades to come,' Kinder said. The company's new projects are about half-and-half focused on serving power demand growth or LNG expansions, said CEO Kim Dang. Kinder Morgan is primarily focused on building pipelines to feed data center growth from Arizona to South Carolina and beyond. The LNG growth is concentrated on Texas and Louisiana, as well as the company's Elba Island LNG facilities in Georgia. The newest expansion announced July 16 is to add to the planned Trident Intrastate Pipeline, which isn't even built yet. The expansion will add to the pipeline's capacity, growing from 1.5 Bcf/d to 2.0 Bcf/d as it stretches 216 miles from west of Houston to LNG hubs by the Texas-Louisiana border. Research firm RBN Energy recently called Trident a 'game changer for Gulf Coast LNG terminals' by solving the logistical challenge of getting gas through the congested Houston area by essentially taking a scenic route north of the nation's fourth-most-populous city. Kinder Morgan also is expanding the Gulf Coast Express Pipeline from the Permian Basin in West Texas to LNG facilities in South Texas, as well as the Evangeline Pass pipeline project in Louisiana to service LNG hubs there. Dang said Kinder Morgan's volumes feeding LNG facilities will growth 50% from now through 2028, up to 12 Bcf/d. Throughout the Deep South, the company has its Mississippi Crossing and South System Expansion 4 projects to move more gas into Mississippi, Alabama, Georgia, and South Carolina, including to potential data center projects that are on the rise in the South. This story was originally featured on
