Key Stats for Kinder Morgan Stock
- 6-Month Performance: 23%
- 52-Week Range: $24 to $33
- Valuation Model Target Price: $35
- Implied Upside: 8%
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What Happened?
Kinder Morgan has risen about 23% over the past six months, recently trading near $33 per share as investors rewarded record earnings, accelerating natural gas demand, and a rapidly expanding project backlog.
Shares are now near the top of their $24 to $33 52-week range, reflecting sustained buying interest rather than a short-term spike.
The stock moved higher after the company reported record 2025 results that materially outpaced expectations, with fourth-quarter adjusted EBITDA up 10% and adjusted EPS up 22% year over year.
CEO Kimberly Dang said the company delivered “a fantastic fourth quarter, producing record results for the quarter and the year.” Natural gas drove the strength, with transport volumes up 9%, gathering volumes up 19%, and Haynesville throughput reaching a record 1.97 Bcf per day.
Management also highlighted a $10 billion backlog, more than $10 billion of additional project opportunities, and expectations for LNG feed gas demand to average 19.8 Bcf per day in 2026, up 19% from 2025 levels.
Balance sheet improvements reinforced confidence in earnings durability. Net debt improved to 3.8 times adjusted EBITDA, the company raised its annualized dividend to $1.17 per share, and S&P upgraded Kinder Morgan to BBB+.
With roughly 85% of cash flows tied to take-or-pay or fee-based contracts, the results strengthened the case that rising LNG exports and power demand can translate into steady, contract-backed growth in 2026.
Institutional positioning remained active. NEOS Investment Management increased its stake by 54.7% to 286,869 shares worth about $8.12 million, Advisors Capital Management raised its holdings to 2,834,730 shares valued near $80.25 million, and HighTower Advisors increased its position to 1,231,845 shares.
Vanguard now owns 208,116,318 shares, or about 9.35% of the company, valued at roughly $5.89 billion.
While Cookson Peirce cut its stake sharply and VP Anthony Ashley sold 8,000 shares at $31.95, institutional investors overall hold 62.52% of Kinder Morgan, signaling broad long-term participation.
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Is Kinder Morgan Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 4.9%
- Operating Margins: 28.2%
- Exit P/E Multiple: 19x
Kinder Morgan’s growth outlook is anchored in rising U.S. natural gas demand, particularly from LNG exports and power generation.
Feed gas demand is expected to reach a record 19.8 Bcf per day in 2026 and management sees continued expansion through the decade.
Because much of the company’s pipeline network is already in place, incremental volumes can drive operating leverage without requiring proportionally higher capital investment.
The $10 billion approved backlog, with about 60% tied to power-related demand, provides visible earnings growth over the next several years.
Projects such as MSX, South System 4, and Trident remain on or ahead of schedule, and the company is evaluating more than $10 billion of additional opportunities.
As those projects move into service, distributable cash flow growth could support continued dividend increases and further balance sheet strength.
Based on these assumptions, the valuation model estimates a target price of $35, implying about 8% total upside from current levels.
At around $33 per share, the stock appears modestly undervalued, with 2026 performance likely driven by LNG-related throughput growth, power demand expansion, and disciplined capital deployment rather than multiple expansion alone.
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