ET - Kinder Morgan: More Upside On The Table As Cash Flows Slated To Grow

2024-04-14 20:52:06 ET

Summary

• Kinder Morgan's financial performance is improving, with most cash flow metrics showing year-over-year improvement.
• The company has provided guidance for 2024, expecting net profits and distributable cash flow to increase compared to the previous year.
• Kinder Morgan is focused on growth and plans to invest in low-carbon initiatives to meet the growing demand for its services, particularly in the LNG sector.

I have long been a big fan of the midstream/pipeline space. In addition to many companies in this market trading at multiples that are well below what other types of firms are trading at, you also have the benefit of investing in an industry where cash flows are stable, can gradually grow, and are large enough to result in rather attractive distributions. My favorite player in this market is undoubtedly Energy Transfer ( ET ). However, another appealing prospect, in my view, is Kinder Morgan ( KMI )....

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