Tariff-Resistant Kinder Morgan Is a Good Buy in 2025

From Nasdaq: 2025-04-18 07:47:00

Kinder Morgan (NYSE: KMI) is benefiting from record levels of natural gas production and demand domestically. The company’s cash flow is strong, allowing for internal funding of growth projects to meet rising demand and volume-driven strength in Q1 results and guidance.

KMI’s 2025 outlook is positive, with expectations to exceed guidance due to the Outrigger acquisition. The acquisition has increased KMI’s capacity, providing revenue visibility through long-term contracts with high-quality customers. Despite potential tariffs and headwinds, KMI has derisked its project backlog and secured domestic steel capacity.

With a significant capital return, KMI’s stock yields over 4% after a Q2 2025 pullback. The company’s free cash flow is sufficient to sustain CapEx, expansion plans, and dividends with minimal debt usage. Earnings growth is tied to contracts and a growing project backlog, reaching $8.8 billion in Q1.

Analysts predict a multiyear high for KMI stock, with a positive revision trend exceeding consensus estimates for 2025 EPS growth. The stock ratings are bullish, with a 10% gain forecasted in early Q2, pushing KMI stock towards record-high levels. Institutional activity supports rising stock prices, with ownership exceeding 60%.

Kinder Morgan’s stock price is gearing up for a big rally, on track to retest all-time highs within 12 to 18 months. The market shows a Bullish Flag continuation signal, potentially leading to a $12 gain and a rise to the $40 level by June 2026. Key trigger points are set at $29 and $31.



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