KMI - Kinder Morgan: AI Could Be A Profit Catalyst (Rating Upgrade)
2024-06-26 23:32:38 ET
Summary
- Kinder Morgan is a premier energy infrastructure company with a focus on natural gas services, generating significant cash flows from this segment.
- Demand for natural gas is expected to grow, benefiting companies like Kinder Morgan with large energy transportation networks and storage facilities.
- Investments in generative AI and the growth of AI workloads may be significant drivers of energy demand going forward.
- Kinder Morgan offers good dividend coverage and trades at a moderate valuation.
Kinder Morgan ( KMI ) is a well-run midstream enterprise that delivers consistently good dividend coverage and is growing its distributable cash flow. Shares of Kinder Morgan have revalued to 1-year highs lately, but the energy company still makes a decent value offer for those investors that are mainly concerned with generating recurring income from the shares. From a valuation perspective, Kinder Morgan is moderately valued, leaving room for a re-pricing to the upside, especially with demand for artificial intelligence products driving energy demand going forward!...
Kinder Morgan: AI Could Be A Profit Catalyst (Rating Upgrade)