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Kinder Morgan's Outlook Remains Bright on Mounting LNG Demand
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Key Takeaways
Kinder Morgan transports 40% of U.S. gas to LNG export terminals, boosting its outlook.
EIA projects U.S. LNG exports rising to 15 BCF/D in 2025 and 16 BCF/D in 2026.
KMI expects global LNG demand to double by decades end, leveraging its Gulf Coast pipelines.
Being a leading midstream energy company, Kinder Morgan, Inc. (KMI - Free Report) is well-positioned to benefit from the increasing demand for natural gas both in the United States and worldwide. Notably, LNG exports are increasing in the United States, and with KMI responsible for transporting roughly 40% of all the gas to the liquefaction terminals, the company’s outlook appears promising.
Notably, the U.S. Energy Information Administration (“EIA”) estimated U.S. LNG export volumes in 2025 at 15 billion cubic feet per day (BCF/D), higher than last year’s 12 BCF/D. Also, for 2026, EIA estimates U.S. LNG exports at 16 BCF/D. Thus, export volumes of LNG will continue to increase.
KMI also expects LNG demand worldwide to double by the end of this decade. This further brightens its outlook, considering it has a massive network of existing natural gas pipelines which is strategically located along the U.S. Gulf Coast, where the concentration of LNG facilities is high.
Can WMB & EPD Gain From Rising Natural Gas Demand?
Other leading midstream players like Williams (WMB - Free Report) and Enterprise Products Partners LP (EPD - Free Report) are also well-positioned to gain from the mounting demand for natural gas.
This is because WMB’s midstream assets include a vast network of pipelines. Williams has been using this network, which extends 33,000 miles, to transport a third of the natural gas produced in the country to specific destinations.
Regarding Enterprise Products Partners’ story, the partnership is a leading name responsible for connecting natural gas producers and consumers through its extensive pipeline assets. EPD is also engaged in the gathering and processing of natural gas.
KMI’s Price Performance, Valuation & Estimates
Shares of KMI have gained 32.1% over the past year compared with the 26.2% improvement of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.71X. This is below the broader industry average of 14.30X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMI’s 2025 earnings has been revised upward over the past 30 days.
Image: Bigstock
Kinder Morgan's Outlook Remains Bright on Mounting LNG Demand
Key Takeaways
Being a leading midstream energy company, Kinder Morgan, Inc. (KMI - Free Report) is well-positioned to benefit from the increasing demand for natural gas both in the United States and worldwide. Notably, LNG exports are increasing in the United States, and with KMI responsible for transporting roughly 40% of all the gas to the liquefaction terminals, the company’s outlook appears promising.
Notably, the U.S. Energy Information Administration (“EIA”) estimated U.S. LNG export volumes in 2025 at 15 billion cubic feet per day (BCF/D), higher than last year’s 12 BCF/D. Also, for 2026, EIA estimates U.S. LNG exports at 16 BCF/D. Thus, export volumes of LNG will continue to increase.
KMI also expects LNG demand worldwide to double by the end of this decade. This further brightens its outlook, considering it has a massive network of existing natural gas pipelines which is strategically located along the U.S. Gulf Coast, where the concentration of LNG facilities is high.
Can WMB & EPD Gain From Rising Natural Gas Demand?
Other leading midstream players like Williams (WMB - Free Report) and Enterprise Products Partners LP (EPD - Free Report) are also well-positioned to gain from the mounting demand for natural gas.
This is because WMB’s midstream assets include a vast network of pipelines. Williams has been using this network, which extends 33,000 miles, to transport a third of the natural gas produced in the country to specific destinations.
Regarding Enterprise Products Partners’ story, the partnership is a leading name responsible for connecting natural gas producers and consumers through its extensive pipeline assets. EPD is also engaged in the gathering and processing of natural gas.
KMI’s Price Performance, Valuation & Estimates
Shares of KMI have gained 32.1% over the past year compared with the 26.2% improvement of the industry.
From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.71X. This is below the broader industry average of 14.30X.
The Zacks Consensus Estimate for KMI’s 2025 earnings has been revised upward over the past 30 days.
Kinder Morgan stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.