Kinder Morgan, Inc. KMI is entering a growth phase shaped by electricity demand, liquefied natural gas development and utility needs rather than a simple commodity-price upswing.
The company’s opportunity centers on contracted infrastructure. Long-term agreements remain the bridge between supply basins and demand centers that need reliable natural gas transportation and storage.
KMI Gains From Power and Utility Demand
Kinder Morgan’s project backlog stood at $9.6 billion at the end of the second quarter of 2026. Natural gas projects accounted for about 92% of that backlog, keeping the company’s growth agenda focused on its largest infrastructure franchise.
More than 60% of the backlog supports power generation and local distribution company demand. That mix gives KMI a longer-duration channel tied to electric reliability, population growth and the need for additional gas-fired generation.
KMI’s theme overlaps with other midstream names. The Williams Companies, Inc. WMB offers investors another way to evaluate natural gas infrastructure exposure, while ONEOK, Inc. OKE brings a broader midstream mix that includes natural gas liquids, gas gathering and processing, pipelines and refined products.
Kinder Morgan Targets Data Center Growth
The Amarillo Expansion shows how digital infrastructure is becoming part of the gas-transportation story. Natural Gas Pipeline Company of America is developing the project to serve Texas Panhandle demand, including additional data center development.
The project is expected to provide up to about 550,000 dekatherms per day of incremental firm transportation capacity. All capacity is fully subscribed under a long-term contract, and the approximately $200 million project carries a Kinder Morgan share of about $75 million.
KMI Builds Capacity for LNG Expansion
Kinder Morgan is also developing projects to serve roughly 3 billion cubic feet per day of additional liquefied natural gas demand. That opportunity sits beside more than 10 billion cubic feet per day of power-sector demand under development across its gas pipeline network.
The company’s Gulf Coast position matters because export-related demand requires both pipeline takeaway and storage flexibility. As liquefied natural gas capacity expands, KMI’s links to supply basins may help turn demand growth into contracted transportation projects.
Kinder Morgan Sees a Large Project Funnel
KMI’s opportunity set exceeds $10 billion beyond projects already sanctioned. Management said it expects significant additions before year-end, likely more than offsetting about $1 billion of projects expected to enter service during the second half of 2026.
This prospective funnel is separate from the existing backlog. Projects still need commercial support, and management’s process remains contract-driven, with final investment decisions tied to agreements that support acceptable returns.
KMI Faces a Capital-Intensive Growth Cycle
High demand on Kinder Morgan’s gas systems is a favorable signal, but it also changes the growth equation. When assets are already highly utilized, future volume growth increasingly depends on new construction instead of simply filling unused capacity.
That raises execution risk. The company has discussed more than $3 billion of annual expansion capital spending based on the current backlog, while large projects still face permitting, regulatory, cost-control and timing risks.
Kinder Morgan’s Earnings Outlook and Estimate Trends
Kinder Morgan’s earnings outlook is tied to a multi-year growth cycle, with consensus EPS expected to rise from 83 cents in 2026 to $1.33 in 2027. While the current quarter estimate shows a year-over-year decline, estimates for second-quarter 2026 earnings, full-year 2026 earnings and full-year 2027 earnings point to improving earnings expectations as power, utility and LNG-related infrastructure demand builds.
Image Source: Zacks Investment Research
KMI’s Trend Exposure Remains Concentrated
The bottom line is that power, liquefied natural gas and utility demand may create a multi-year infrastructure cycle for Kinder Morgan. The opportunity is meaningful because it is tied to contracted capacity, not just short-term changes in gas prices.
The concentration also matters. Natural gas projects dominate the backlog, and low-carbon exposure through renewable natural gas and related activities remains limited relative to the scale of the gas buildout.
KMI currently carries a Zacks Rank #3 (Hold). That rank fits a stock with visible upside drivers but enough uncertainty to keep the investment stance measured. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KMI has a Momentum Score of A, Value Score of C, Growth Score of C and VGM Score of C.
Its Momentum Score of A supports the idea that the stock has favorable near-term trading characteristics, while its Value Score of C, Growth Score of C and VGM Score of C point to a more neutral broader style profile.
The score mix fits the article’s main takeaway. KMI’s infrastructure-cycle thesis has stronger support from momentum than from standout value or growth signals, so investors may want to weigh the backlog opportunity against execution demands and concentrated gas exposure.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report
ONEOK, Inc. (OKE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).