Core Insights - Kinder Morgan's stock closed at $27.05, reflecting a +0.74% increase, outperforming the S&P 500's gain of 0.73% [1] - The upcoming earnings report is expected to show an EPS of $0.33, a 17.86% increase year-over-year, with projected revenue of $4.09 billion, up 1.28% from the previous year [2] - For the fiscal year, earnings are projected at $1.17 per share and revenue at $15.28 billion, indicating a +9.35% change in earnings but a -0.38% change in revenue from the prior year [3] Company Performance - Kinder Morgan's shares have decreased by 5.76% over the past month, outperforming the Oils-Energy sector's decline of 9.2% but lagging behind the S&P 500's gain of 0.34% [6] - The Zacks Rank for Kinder Morgan is currently 3 (Hold), with a recent 0.51% decrease in the consensus EPS estimate over the last 30 days [7] Valuation Metrics - Kinder Morgan has a PEG ratio of 3.88, compared to the industry average of 3.35, indicating a higher valuation relative to projected earnings growth [8] - The company holds a Forward P/E ratio of 22.87, which is a premium compared to the industry average Forward P/E of 15.89 [10] Industry Context - The Oil and Gas - Production and Pipelines industry is currently ranked 188 in the Zacks Industry Rank, placing it in the bottom 26% of over 250 industries [11]

Kinder Morgan (KMI) closed at $28.54 in the latest trading session, marking a +1.93% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 0.03%.Shares of the oil and natural gas pipeline and storage company witnessed a gain of 13.04% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.73% and the S&P 500's gain of 1.02%.The i ...

The U.S. is about to enter an unprecedented period of power demand. After barely growing over the last 20 years, forecasters expect electricity demand in the country to surge over the next decade, growing more than 10 times faster than the prior 10 years. Several catalysts will power that surge, including the electrification of the heating and transportation sectors, electric vehicles, and AI data centers. Natural gas will play a crucial role in helping support the expected surge in power demand. Forecaster ...

The S&P 500 has gained an impressive 35% over the past year. Because of that, its dividend yield has fallen from 1.7% a year ago to around 1.2% these days. That's its lowest level in more than 20 years. It's also well below its peak of more than 4% toward the end of the 2008-2009 financial crisis. To put that into a more tangible context, a $10,000 investment made in the S&P 500 right now would only produce about $120 of dividend income over the next year. That compares to the $170 or so that would be colle ...

Core Insights - Kinder Morgan's Q3 2024 earnings report showed adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 27 cents, with total revenues of $3.7 billion also falling short of the expected $3.8 billion [2] - The company announced a quarterly cash dividend of 28.75 cents per share, reflecting a 2% increase from Q3 2023 [3] - Despite lower commodity prices impacting performance, Kinder Morgan projects a net income of $2.7 billion for 2024, a 15% increase from 2023, along with a 2% increase in dividends [10][11] Financial Performance - Q3 2024 adjusted earnings per share were flat year over year, while total revenues decreased from $3.9 billion in the prior-year quarter [2] - Distributable Cash Flow (DCF) remained stable at $1.09 billion compared to the same quarter last year [8] - As of September 30, 2024, Kinder Morgan reported $108 million in cash and cash equivalents and long-term debt of $29.8 billion [9] Segment Analysis - Natural Gas Pipelines segment saw adjusted EBDA increase to $1.28 billion from $1.19 billion year over year, driven by contributions from the Texas Intrastate system and STX Midstream acquisition [4] - Product Pipelines segment's EBDA decreased to $277 million from $313 million due to lower commodity prices [5] - Terminals segment generated EBDA of $267 million, up from $259 million, benefiting from liquid terminal expansions and increased volumes [6] Operational Highlights - Total operating costs and expenses decreased to $2,684 million from $2,969 million, while operations and maintenance expenses rose to $790 million from $738 million year over year [7] Guidance and Outlook - For 2024, Kinder Morgan expects Adjusted EBITDA of $8.16 billion and DCF of $5 billion, both reflecting an 8% year-over-year increase [10] - Adjusted EBITDA and Adjusted EPS are now projected to be about 2% and 4% below budget due to lower commodity prices and delays in RNG facilities [11] - The company holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [14]

Group 1: Realty Income - Realty Income is a REIT focused on delivering dependable monthly dividends that have increased for 30 consecutive years, including 108 straight quarters [3][4] - The current dividend yield is over 5%, significantly higher than the S&P 500's average yield of less than 1.5%, translating to about $5 of annual passive income for every $100 invested [4] - The company expects to grow its adjusted funds from operations (FFO) by approximately 4% to 5% per share annually, driven by rent growth and acquisitions [5][6] Group 2: Kinder Morgan - Kinder Morgan operates the largest natural gas pipeline system in the U.S. and has a diverse portfolio of midstream assets that generate stable cash flows [7][8] - The company has a backlog of $5.2 billion in expansion projects, including a $1.7 billion natural gas pipeline expansion expected to enter service in late 2028 [9] - Kinder Morgan has increased its dividend for the past seven years, supported by its stable cash flow and ongoing expansion projects [9] Group 3: Verizon Communications - Verizon has achieved its 18th consecutive annual dividend increase, with a current yield of 6.5%, marking the longest streak in the U.S. telecom sector [10] - The company generates excess free cash flow, which it uses to strengthen its balance sheet while covering capital expenses and dividends [10] - Verizon plans to acquire Frontier Communications in a $20 billion cash deal, which is expected to enhance its fiber offerings and grow earnings, allowing for continued dividend increases [11] Group 4: Investment Summary - Realty Income, Kinder Morgan, and Verizon are highlighted as attractive options for passive income due to their high-yielding dividends and solid financial metrics, with visible growth prospects for continued dividend increases [12]

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .We find that uncertainty has an economically significant negative effect on investment. Uncertainty is found to have an economically significant negative effect on employment growth, as well.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any o ...

The price of natural gas is expected to remain low for the foreseeable future because of the ramping production. A lot of it is available, and the infrastructure is improving rapidly. Natural gas production is driven by the need to decarbonize and a need to power AI, which also drives demand. Demand for natural gas is the salient point because it has to be gathered, processed, stored, and transported, which is where the profits are. Mid-stream operators are insulated from natural gas price swings. They make ...

Core Viewpoint - Kinder Morgan's stock has surged over 41% year-to-date, reaching a nine-year high, significantly outperforming the S&P 500 and the broader energy sector [1] Financial Performance - Kinder Morgan's earnings per share (EPS) increased by 17% year-over-year for Q3 2023, but adjusted EPS growth was flat, with a 5% rise for the nine months ending September 30 compared to the previous year [2] - The company's dividend yield has decreased to 4.6%, still higher than energy sector ETFs [1] Growth Drivers - The stock's rise is attributed to the potential of its project pipeline rather than current operations, with successful acquisitions enhancing its asset base and revenue diversification [2] - Significant acquisitions include Stagecoach Gas Services for $1.23 billion, Kinetrex Energy for $310 million, and North American Natural Resources for $135 million, expanding its renewable natural gas (RNG) portfolio [3] - The recent $1.815 billion acquisition of NextEra Energy Partners' South Texas assets is aimed at capitalizing on natural gas production growth from the Permian Basin [4] Project Pipeline and Future Outlook - The South System Expansion 4 Project, valued at $3 billion, targets increasing demand for natural gas in the southeastern U.S. [4] - Management emphasizes the role of natural gas in powering data centers and supporting AI workflows, indicating a favorable macro environment for infrastructure growth [4] - Kinder Morgan's project pipeline is expected to enhance free cash flow and dividend payments [5] Capital Expenditures and Debt Management - The company has cautiously increased capital expenditures in recent years, maintaining a flat capex over the last five years [6] - Long-term debt net of cash has been reduced by 35% over the past decade, indicating improved financial health [6] Dividend Strategy - Kinder Morgan has gradually increased its dividend, currently at $0.2875 per share, but it remains below pre-cut levels from 2015 [6] - The company must demonstrate that its project pipeline can lead to significant cash flow and dividend growth to maintain its appeal as a passive income investment [7]

Group 1: United Parcel Service (UPS) - UPS is set to report its third-quarter 2024 earnings on October 24, with the stock currently trading less than 9% from its four-year low, indicating a critical period for the company [2] - The company has guided for full-year consolidated revenue of $93 billion, an operating margin of 9.4%, and capital expenditures of $4 billion, reflecting a pullback on spending to cut costs and restore margins [2] - UPS announced new three-year financial targets of $108 billion to $114 billion in consolidated revenue by 2026, with an adjusted operating margin above 13% and $17 billion to $18 billion in free cash flow [3] - The company returned to domestic volume growth for the first time in nine quarters, but the three-year targets may be delayed until 2027, necessitating more concrete measures to accelerate sales growth [3] - UPS currently yields 4.9%, with management prioritizing the maintenance of its current payout [3] Group 2: Kinder Morgan - Kinder Morgan's stock price increased less than 20% from 2016 to the end of 2023, while factoring in dividends, the total return was 77%, still underperforming the S&P 500's 170% total return during the same period [4] - The stock price surged over 40% year to date, and despite this rise, Kinder Morgan still yields 4.6%, indicating a high yield when the stock was previously undervalued [4] - The company has benefited from expectations of increased domestic natural gas demand and opportunities for higher exports, which are vital for justifying new project investments [5] - Concerns about Kinder Morgan's infrastructure assets losing value due to a shift towards renewables have persisted, but there are signs that natural gas will remain part of the energy mix in the medium term [6] - Kinder Morgan generates substantial cash to reinvest in the business and support its growing dividend payout, making it a reliable high-yield dividend stock [6]