KMI - Kinder Morgan: Low-Risk Capacity Expansion Projects Driving Value Growth

2024-06-22 08:04:16 ET

Summary

• Kinder Morgan is a defensible midstream infrastructure operator with a 5.8% dividend yield and growing dividends since 2016.
• The company's earnings are growing, with strong performance in the Natural Gas Pipelines and Products Pipelines segments.
• KMI's growth projects are pressuring dividend payouts in the short term but will create value mid-term, with a focus on deleveraging and strong cash flows.

Kinder Morgan ( KMI ) is a defensible midstream infrastructure operator, generating the majority of their earnings from long-term fixed-price contracts with customers. KMI is currently trading at a 5.8% dividend yield and has been paying a rising dividend since 2016. The growing natural gas production in the US is also opening opportunities for KMI to expand infrastructure and grow dividends over time....

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