Houston, Texas-based Kinder Morgan, Inc. (KMI) is one of North America’s largest energy infrastructure companies. The company has a market cap of $69.9 billion and operates a vast network of pipelines and terminals that transport and store essential energy products
Companies with a market cap of $10 billion or more are typically referred to as “big-cap stocks.” KMI fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the oil and gas midstream industry.
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What makes Kinder Morgan stand out is its extensive energy infrastructure, predictable cash flows, and strategic positioning in natural gas. Its large pipeline and storage network, supported by long-term, fee-based contracts, provides a durable earnings base, while its scale and hard-to-replicate assets create a competitive advantage. The company is also well positioned to benefit from rising natural gas demand, particularly from LNG exports and power generation.
KMI’s rally has hit a patch of turbulence. The stock currently trades 8.1% below its 52-week high of $34.81 recorded on May 19. KMI has increased 2.2% over the past three months, underperforming the Pacer American Energy Infrastructure ETF’s (USAI) 5% rise over the same time frame.
www.barchart.com Over the longer haul, KMI has delivered solid gains, but not enough to keep up with the USAI. The stock has grown 16.3% in 2026 and 20.8% over the past 52 weeks, underperforming USAI’s 25.9% rise in 2026 and 24.3% over the past year.
KMI has traded above its 200-day moving average since January, but it currently trades below its 50-day moving average. That split tells a more nuanced story that the longer-term trend remains constructive, even as near-term momentum has cooled.
www.barchart.com Although Kinder Morgan’s shares have lagged the broader market over the past year, recent developments could provide investors with reasons to reassess the stock’s prospects.
Kinder Morgan is taking a major step toward expanding its growth platform through the proposed $5 billion Western Gateway Pipeline system. On Aug. 11, the company announced a joint venture with Phillips 66 (PSX) and HF Sinclair Corporation (DINO), under which it will own 35.1% of the project, contribute its SFPP East and West Line pipelines and invest approximately $250 million in cash. Targeted for completion in 2029, the project could strengthen KMI’s Western infrastructure footprint and create another source of long-term, contracted earnings.
Moreover, Goldman Sachs sees a fresh opportunity in natural gas midstream stocks after a recent pullback, driven by a sharp upgrade to its data center power-demand outlook. The bank now expects natural gas demand growth of 10–11 billion cubic feet per day from 2025 to 2030, up from 7–8 bcf/d previously. KMI could benefit from the data center boom as rising electricity demand drives greater need for natural gas-fired power generation and pipeline capacity. Goldman Sachs’ upgraded demand outlook strengthens the case for new infrastructure, while KMI’s existing pipeline network and tight latent capacity could help it capture additional transportation opportunities.
When stacked against its rival, Enterprise Products Partners L.P. (EPD) has surged 23.4% over the past year, and 21.1% in 2026, outpacing KMI.
Wall Street has a moderately bullish view of the stock currently. Among the 21 analysts tracking KMI, the overall consensus stands at a “Moderate Buy.” Its mean price target of $36.25 suggests 13.4% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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