Kinder Morgan expects growth in 2025 due to increased energy demand, positive outlook.

From Nasdaq: 2025-01-26 09:45:00

Pipeline and energy infrastructure giant Kinder Morgan (NYSE: KMI) experienced a 55% surge in 2024, aligning with a rebound in the oil and gas midstream industry. The company reported positive fourth-quarter and full-year earnings and provided guidance for 2025, showing a 7% increase in adjusted EPS for 2024. Despite past challenges, including a dividend cut in 2014, Kinder Morgan has focused on high-conviction projects, anticipating increased demand for energy infrastructure due to U.S. oil and gas production and AI-driven power needs. The company aims for financial health, forecasting a 10% increase in adjusted EPS for 2025.

Kinder Morgan’s CEO highlighted the potential impact of AI infrastructure on natural gas demand, projecting a 28 bcf/d increase by 2030. While the company anticipates growth from AI, it also prioritizes financial health, targeting a net debt-to-EBITDA ratio of 3.8 for 2025. Although the stock has a P/E ratio of 24.2, reflecting its recent price gains, Kinder Morgan remains a reasonable investment option. Investors seeking alternatives may consider ExxonMobil or Chevron, which offer higher yields, or a low-cost ETF like the Vanguard Energy ETF.



Read more at Nasdaq: Kinder Morgan Expects Growth to Continue in 2025, but Is the High-Yield Dividend Stock a Buy Now?