Kinder Morgan Stock Might Be Down, but Is It Out?

Core Insights - Kinder Morgan is experiencing a growth phase despite a recent decline in share price, presenting a potential buying opportunity for long-term investors [1][8] Financial Performance - Kinder Morgan reported a 16% increase in earnings per share for the third quarter, driven by rising gas demand and a recent acquisition from Outrigger Energy, leading to expectations of exceeding financial targets for the year [2] - The company has a market capitalization of $59 billion and a current share price of $26.55, with a dividend yield of 4.5%, significantly higher than the S&P 500's yield of 1.1% [5][6] Growth Projects - Kinder Morgan added $500 million in new growth capital projects during the third quarter, resulting in a backlog of $9.3 billion, up from $3 billion at the end of 2023, with projects expected to enter commercial service by the second quarter of 2030 [3] - The company is pursuing over $10 billion in potential projects, primarily focused on expanding natural gas infrastructure, driven by demand from power generation and LNG export capacity [5] Future Outlook - Significant earnings growth acceleration is anticipated between 2027 and 2029 as three large-scale gas pipeline projects are expected to be completed [7] - The combination of income from dividends and growth from expansion projects positions Kinder Morgan for robust total returns in the coming years, especially given its current lower valuation [8]