Kinder Morgan (KMI) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this oil and natural gas pipeline and storage company have returned +2.1% over the past month versus the Zacks S&P 500 composite's +5.2% change. The Zacks Oil and Gas - Production and Pipelines industry, to which Kinder Morgan belongs, has gained 1.1% over this period. Now the key question is: Where could the ...

Earnings Estimate Revisions and Stock Performance - The Zacks Rank upgrade for Kinder Morgan (KMI) to 2 (Buy) reflects an upward trend in earnings estimates, which is a powerful factor influencing near-term stock price movements [1][2] - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3] - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and their investment actions based on these estimates lead to stock price movements [3] Zacks Rank System and Its Effectiveness - The Zacks Rank system tracks the Zacks Consensus Estimate, which is the consensus measure of EPS estimates from sell-side analysts, for the current and following years [1] - The Zacks Rank system uses four factors related to earnings estimates to classify stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [4] - The Zacks Rank system maintains an equal proportion of 'buy' and 'sell' ratings for its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating [6] Kinder Morgan's Earnings Outlook - Kinder Morgan is expected to earn $1 19 per share for the fiscal year ending December 2024, representing a year-over-year change of 11 2% [5] - Over the past three months, the Zacks Consensus Estimate for Kinder Morgan has increased by 2 2% [5] - The upgrade of Kinder Morgan to a Zacks Rank 2 positions it in the top 20% of Zacks-covered stocks in terms of estimate revisions, indicating potential for near-term stock price appreciation [7]

Investors with an interest in Oil and Gas - Production and Pipelines stocks have likely encountered both Kinder Morgan (KMI) and Pembina Pipeline (PBA) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies ...

Bloomberg/Bloomberg via Getty Images US investors have to dig and claw to find quality high-yield names. Goldman Sachs reports that the current dividend yield on the S&P 500 is a scant 1.45% as of late February 2024. It could be a sign that the market is getting pricey, though the beaten-down Energy sector trades at a very low forward earnings multiple today. If you do some globe-trotting, though, you will find much higher yields. For investors wishing to boost their domestic portfolio’s income rate, th ...

Company Overview - Kinder Morgan's stock closed at $17.26, reflecting a -0.92% change from the previous trading day, underperforming the S&P 500's 2.11% gain [1] - Over the past month, Kinder Morgan's shares have increased by 3.14%, while the Oils-Energy sector gained 6.4% and the S&P 500 rose by 3.08% [1] Earnings Projections - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of $0.32, indicating a 6.67% increase year-over-year [1] - Revenue is expected to reach $4.26 billion, reflecting a 9.62% growth compared to the same quarter last year [1] - For the full year, analysts expect earnings of $1.19 per share and revenue of $16.8 billion, marking changes of +11.21% and +9.54% respectively from the previous year [2] Analyst Sentiment - Recent changes in analyst estimates are crucial, as upward revisions indicate positive sentiment towards Kinder Morgan's business operations [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Kinder Morgan at 3 (Hold) [3] Valuation Metrics - Kinder Morgan has a Forward P/E ratio of 14.6, which is a premium compared to the industry average of 14.01 [3] - The company also has a PEG ratio of 4.87, aligning with the industry average [3] Industry Context - The Oil and Gas - Production and Pipelines industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 87, placing it in the top 35% of all industries [4] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [4]

Pipeline Acquisitions and Expansions - Acquired STX Midstream pipeline system for $1,831 million in December 2023, including Eagle Ford Transmission system and interests in NET Mexico Pipeline LLC and Dos Caminos, LLC[13] - Placed TGP East 300 Upgrade in service in 2023, providing 115,000 Dth/d capacity to Con Edison's distribution system[16] - Completed Eagle Ford transport project in November 2023, transporting up to 1.88 Bcf/d of natural gas to Gulf Coast markets at a cost of $231 million[16] - PHP expansion project completed in December 2023, increasing natural gas deliveries by 550,000 Dth/d at a cost of $159 million[16] - Greenholly pipeline expansion completed in August 2023, providing 1.15 Bcf/d capacity at a cost of $125 million[18] - TGP and SNG Evangeline Pass project expected to provide 2 Bcf/d capacity to Plaquemines LNG facility, with first phase in-service date in Q3 2024 and second phase in Q3 2025 at a cost of $673 million[19][20] - TVA Cumberland project expected to transport 0.245 Bcf/d of natural gas to TVA's generation facility, with in-service date in August 2025 at a cost of $181 million[21] - KMTP system expansion expected to deliver 0.5 Bcf/d of natural gas to Texas Gulf Coast and Mexico markets, with in-service date in November 2024 at a cost of $180 million[22][23] - Diamond M expansion expected to result in peak oil production of over 5,000 Bbl/d, with first phase in late 2024 and peak production in 2026 at a cost of $180 million[24] - Central Texas pipeline project includes installation of 22 miles of 30-inch pipeline and is expected to be in-service by Q4 2024 with a cost of $115 million[24] - Tejas South to North expansion project aims to increase natural gas deliveries by approximately 0.35 Bcf/d to Houston markets, expected in-service by Q3 2024 with a cost of $97 million[24] - 3Rivers Offload Phase II project will construct 19 miles of 16-inch pipeline, expected in-service by Q2 2025 with a cost of $96 million[24] Renewable Natural Gas (RNG) Facilities - Constructed three RNG facilities providing approximately 3.5 Bcf of RNG annually, with Twin Bridges and Liberty facilities placed in service in 2023 at a cost of $153 million[16] - The company constructed three additional landfill-based RNG facilities, with Twin Bridges and Liberty placed in service in June and October 2023, respectively, and Prairie expected in December 2023, with a capital scope of $153 million[16] - Twin Bridges RNG facility has a 100% ownership interest with a production capacity of 1.5 Bcf/y[68] Pipeline Ownership and Capacity - SLNG has 100% ownership interest with a design capacity of 1.76 Bcf/d and storage capacity of 12 Bcf[36] - EPNG/Mojave pipeline spans 10,720 miles with a design capacity of 6.39 Bcf/d and storage capacity of 44 Bcf[36] - KM Texas and Tejas pipelines have a combined design capacity of 9.50 Bcf/d and storage capacity of 138 Bcf[36] - Gulf Coast Express pipeline has a 34% ownership interest with a design capacity of 2.00 Bcf/d[36] - PHP pipeline has a 27.74% ownership interest with a design capacity of 2.65 Bcf/d[36] - KM Crude & Condensate pipeline spans 266 miles with a terminal capacity of 2.6 MMBbl[47] - Pacific (SFPP) pipeline spans 2,806 miles with a terminal capacity of 15.9 MMBbl[47] - Liquids terminals have a total capacity of 78.7 MMBbl across 47 locations[52] - Jones Act tankers have a total capacity of 5.3 MMBbl across 16 vessels[52] - The company's Natural Gas Pipelines segment includes approximately 44,000 miles of wholly owned natural gas pipelines and equity interests in entities with 27,000 miles of pipelines[33] - Products Pipelines segment includes 2,806 miles of Pacific (SFPP) pipeline with 99.5% ownership and 15.9 MMBbl terminal capacity[47] - Terminals segment includes 47 liquids terminals with 78.7 MMBbl capacity and 16 Jones Act-qualified tankers with 5.3 MMBbl capacity[52] Contracts and Revenue - Natural gas pipelines derive 74% of sales and transport margins from long-term contracts with a weighted average remaining contract life of 6 years[39] - The weighted average remaining length of service contracts for the liquids terminals business is approximately two years as of December 31, 2023[53] - The bulk terminals business primarily handles petroleum coke, metals, and ores, with contracts often including minimum volume guarantees and service exclusivity arrangements[55] - CO2 source and transportation business has third-party contracts with an average remaining contract life of approximately seven years as of December 31, 2023[69] - No single external customer accounted for 10% or more of the company's total consolidated revenues in 2023, 2022, or 2021[71] - No single customer accounted for 10% or more of total consolidated revenues in 2023, 2022, or 2021[71] Regulatory Compliance - The company's U.S. refined petroleum products and crude oil pipelines are subject to FERC regulation under the Interstate Commerce Act, requiring tariffs to be just and reasonable and nondiscriminatory[77] - Petroleum products and crude oil pipelines can adjust rates within prescribed ceiling levels tied to an inflation index, with shippers able to protest increases if they exceed cost increases[78] - The company's California refined products pipelines are regulated by the CPUC using a depreciated book plant methodology based on original cost investment[79] - Intrastate operations in Texas are regulated by the RCT, which has authority over rates but typically does not investigate without shipper complaints[80] - The company is subject to the Jones Act, which restricts maritime transportation between U.S. points to U.S.-built, registered, owned, and crewed vessels[82] - FERC has authority to impose civil penalties of more than $1.4 million per day per violation[75] - Environmental regulations, including the Clean Air Act and Clean Water Act, impose significant compliance costs and potential liabilities for the company[86][89][90] - The company is subject to CERCLA (Superfund) liability for hazardous substance releases, potentially requiring cleanup costs and natural resource damage compensation[88] - PHMSA pipeline safety regulations require the company to maintain integrity management programs, especially for High Consequence Areas (HCAs)[97] - Climate change regulations, including GHG emission limits, could increase operational costs and impact the company's financial position[93][94][96] - Compliance with environmental regulations could require significant capital expenditures[86] - The company generates hazardous and non-hazardous wastes subject to RCRA and state statutes[87] - Operations are regulated under the Clean Air Act, with EPA requirements for monitoring and controlling greenhouse gas (GHG) emissions, particularly from stationary sources[89] - The Clean Water Act imposes restrictions on pollutant discharges, with spill prevention and control measures required to prevent contamination of navigable waters[90][91] - EPA revisions to National Ambient Air Quality Standards (NAAQS) for ozone lowered the acceptable level from 75 ppb to 70 ppb, impacting compliance and potentially requiring retrofitting of facilities[91][92] - Pipeline safety regulations by PHMSA require integrity management programs, with recent rules expanding requirements for gas and hazardous liquid pipelines, including remote shut-off valves and corrosion control[97][98] - Cybersecurity regulations require the company to implement and maintain comprehensive cybersecurity plans, including incident response and vulnerability assessments[101][102] Financial Activities - In 2023, the company issued $1,500 million of new senior notes and repurchased 32 million shares of Class P common stock for $522 million at an average price of $16.56 per share[25] - The company issued $2,250 million of new senior notes on February 1, 2024, to repay short-term borrowings and fund maturing debt[25] - The company's share repurchase program has approximately $1.5 billion of capacity remaining after repurchasing $522 million worth of shares in 2023[25] CO2 and Oil & Gas Interests - The company owns 45% of the McElmo Dome unit with a compression capacity of 1.5 Bcf/d, 87% of the Doe Canyon Deep unit with 0.2 Bcf/d, and 11% of the Bravo Dome unit with 0.3 Bcf/d[60] - The Cortez CO2 pipeline has a 53% ownership interest, 569 miles of pipeline, and a transport capacity of 1.5 Bcf/d[62] - The Wink crude oil pipeline is 100% owned by the company, with 434 miles of pipeline and a transport capacity of 145 MBbl/d[62] - The SACROC oil and gas field has a 97% working interest and 50,316 gross developed acres[63] - Oil and gas producing interests include 97% ownership of SACROC field with 50,316 gross developed acres and 50% ownership of Yates field with 9,676 gross developed acres[63] - Gas plant interests include 22% ownership of Snyder gas plant and 51% ownership of Diamond M gas plant[66] - LNG Indy has a 100% ownership interest with a production capacity of 2 Bcf[68] - Southeast Berrien GTE facility has a 100% ownership interest with a generation capacity of 4.8 mW/h[68] - CO segment contracts have an average remaining contract life of approximately seven years as of December 31, 2023[69] - The company's CO2 business competes with suppliers owning McElmo Dome, Bravo Dome, and Sheep Mountain CO2 resources[70] Employee and Safety Information - The company employed 10,891 full-time personnel as of December 31, 2023, including 891 full-time hourly personnel covered by collective bargaining agreements expiring between 2024 and 2028[103] - The company's 2023 company-wide Total Recordable Incident Rate (TRIR) was 0.8, with a goal to improve from 1.0 in 2019 to 0.7 by 2024[105] - Employee safety performance targets include achieving a company-wide TRIR of 0.7 by 2024, down from 1.0 in 2019[105] - The company’s compensation program is linked to strategic objectives, including environmental, safety, and compliance targets, with competitive base salaries and benefits[108] Land and Rights-of-Way - The company generally does not own the land on which its pipelines are constructed, instead obtaining and maintaining rights to construct and operate pipelines on other people's land under perpetual or renewable agreements[110] - Substantially all pipelines are constructed on rights-of-way granted by the apparent record owners of the property, with majority owner signatures obtained in most cases[110] - Permits have been obtained from public authorities to cross or lay facilities in water courses, roads, and highways, some of which are revocable or require periodic payments[110] - Permits from railroad companies to run along or cross lands or rights-of-way are also revocable in many cases[110] - In a few minor cases, the company has purchased property for pipeline purposes[110] Reporting and Disclosure - The company provides free access to its annual reports (Form 10-K), quarterly reports (Form 10-Q), and current reports (Form 8-K) on its website[111] - Reports are made available as soon as reasonably practicable after being filed with or furnished to the SEC[111] - The SEC maintains a website with electronic filings, reports, and information for issuers[111] - Information on the company’s website is not incorporated by reference into its Form 10-K or other SEC filings[111] Hedging and Market Risk - The company uses energy commodity derivative contracts to hedge market risks, subject to Dodd-Frank Act regulations on OTC derivatives[85] - The company uses energy commodity derivative contracts to hedge exposure to energy commodity market risk[85]

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Investors looking to create a seven-figure portfolio should probably own a diversified list of stocks. While capital growth should be a key focus, there's also a place for high-yield investments in the mix. But should 6.8%-yielding Kinder Morgan (KMI 1.02%) be on your buy list? There's a good reason to believe that this midstream giant won't be a millionaire maker anytime soon. And the dividend history here suggests that those considering buying it might be better off elsewhere.What does Kinder Morgan do?Si ...

If you pay even cursory attention to the news, you know that solar and wind power are increasingly important power sources. You probably also know that carbon fuels like oil and natural gas aren't held in high regard because of the emissions they produce. Kinder Morgan (KMI -1.69%) points out that these dynamics are unlikely to spell the end of oil anytime soon. Here's what you need to know.Kinder Morgan is an important industry service providerKinder Morgan is known as a midstream company. It basically own ...

Growth has been hard to come by for Kinder Morgan (KMI 0.64%) in recent years. Its distributable cash flow (DCF) dipped 4% per share last year and has been uneven over the past few years because of a variety of headwinds. However, the company expects its DCF per share to grow by around 8% this year. Meanwhile, it's very bullish on future growth. One of the biggest catalysts fueling that optimism is the expansion it sees ahead for the U.S. natural gas market. That bodes well for the company's ability to cont ...