Kinder Morgan, Inc. (NYSE:KMI) is included among the 14 Best LNG Stocks to Buy Now. Kinder Morgan (KMI) Price Target Raised to $34 Following Impressive Q4 Results Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company has an interest in or operates approximately 78,000 miles of pipelines and 139 terminals. On February 20, Barclays raised its price target on Kinder Morgan, Inc. (NYSE:KMI) from $32 to $34, while maintaining an ‘Overweight’ rating ...

Core Insights - MDU Resources Group, Inc. reported third quarter financial results for 2025, highlighting strong performance in the pipeline segment and regulatory activities in utility segments, despite increased operational costs [1][2][4] Financial Performance - Net income for Q3 2025 was $18.4 million, down from $64.6 million in Q3 2024, with earnings per share (EPS) at $0.09 compared to $0.32 in the previous year [2][19] - Income from continuing operations increased to $18.4 million from $15.6 million year-over-year, with diluted EPS from continuing operations at $0.09, up from $0.08 [2][19] - For the nine months ended September 30, 2025, net income was $114.1 million, down from $225.9 million in 2024, with EPS decreasing from $1.11 to $0.56 [2][19] Segment Performance Electric Utility Segment - The electric utility segment reported a net income of $21.5 million in Q3 2025, down $2.8 million from the previous year, primarily due to higher operation and maintenance expenses [4][26] - Retail sales volumes declined by 1.6%, attributed to cooler summer temperatures, although industrial retail sales volumes increased [4][26] Natural Gas Distribution Segment - The natural gas distribution segment experienced a seasonal loss of $18.2 million in Q3 2025, compared to a loss of $17.5 million in Q3 2024, driven by higher operational costs [5][30] - Operating revenues increased by 8.0% year-over-year to $144.3 million, with total operating expenses rising by 7.4% [27] Pipeline Segment - The pipeline segment reported net income of $16.8 million in Q3 2025, up from $15.1 million in Q3 2024, driven by revenue from growth projects and increased customer demand [10][32] - Operating revenues for the pipeline segment increased by 11.5% year-over-year to $57.4 million [31] Regulatory Updates - MDU Resources is actively involved in regulatory proceedings across multiple states, including rate case filings in Montana and Wyoming, seeking annual increases of $14.1 million and $7.5 million, respectively [9][30] - The North Dakota Public Service Commission approved the acquisition of a 49% interest in Badger Wind Farm, which is expected to enhance the company's renewable energy portfolio [4][9] Guidance and Future Outlook - The company narrowed its earnings guidance for 2025 to a range of $0.90 to $0.95 per share, reflecting a slight adjustment based on performance through Q3 [3][11] - MDU Resources anticipates continued customer growth at a rate of 1% to 2% annually, with ongoing capital investment and rate recovery plans [17][30]

Financial Data and Key Metrics Changes - For Q2 2025, the company generated adjusted EBITDA of $3.9 billion, an increase from $3.8 billion in Q2 2024, indicating a growth in operational performance [6] - The ECF attributable to partners was approximately $2 billion, with $2 billion spent on organic growth capital in the first half of 2025 [6] Business Line Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA decreased to $1 billion from $1.1 billion in 2024, attributed to lower optimization gains and blending margins [7] - Midstream segment adjusted EBITDA increased to $768 million from $693 million, driven by a 10% increase in legacy volumes in the Permian Basin [8] - Crude oil segment adjusted EBITDA decreased to $732 million from $800 million, impacted by lower transportation revenues on the Bakken pipeline [9] - Interstate natural gas segment adjusted EBITDA rose to $470 million from $392 million, due to higher contracted volumes [10] - Intrastate natural gas segment adjusted EBITDA decreased to $284 million from $328 million, affected by reduced pipeline optimization [10] Market Data and Key Metrics Changes - The company noted strong volumes through its NGL fractionators and natural gas pipelines, with several volume records achieved during the quarter [6] - The Permian Basin processing volumes reached a new record of nearly 5 Bcf per day, reflecting increased operational capacity [16] Company Strategy and Development Direction - The company plans to spend approximately $5 billion on organic growth capital projects in 2025, focusing on NGL transportation and processing expansions [11] - New projects like the Desert Southwest Pipeline and Hugh Branson pipeline are expected to enhance system reliability and meet growing demand for natural gas [12][14] - The company aims to leverage its extensive pipeline network and storage capabilities to support the increasing demand for energy resources [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant growth in demand for energy resources and the company's strong positioning in the industry [22] - The company anticipates challenges in the Bakken and dry gas areas but expects recovery and growth in the second half of the year [21][60] Other Important Information - The Desert Southwest Pipeline project is expected to provide 1.5 Bcf per day of transportation capacity and is backed by long-term commitments [12] - The company is in advanced discussions for additional natural gas projects to support power plants and data centers [20] Q&A Session Summary Question: Can you provide more detail on the commercialization efforts related to data centers? - Management highlighted the significant upside potential in data centers and mentioned recent deals signed in Texas, with ongoing discussions for more contracts [27][31] Question: Can you provide color on the expected build multiple for the Desert Southwest project? - Management expressed confidence in selling out the project and mentioned potential for expansion due to high demand [34][35] Question: Where are we with the Lake Charles LNG project? - Management indicated that the EPC quote process is progressing well and they are optimistic about reaching FID soon [41][43] Question: What are the competitive advantages in winning the Desert Southwest project? - Management attributed success to strong negotiation capabilities and a well-integrated pipeline network [50][51] Question: How does the company view construction cost risk sharing? - Management confirmed a traditional structure where the midstream company bears the cost risks, with contingency plans in place [55][46] Question: What is the outlook for Bakken and Permian crude growth? - Management noted a temporary decline in volumes but expressed bullish sentiment for future growth due to upcoming projects and market dynamics [60][62] Question: How will the company approach LNG expansions given existing infrastructure? - Management emphasized the benefits of vertical integration and the existing pipeline routes that support the Lake Charles LNG project [85] Question: What percentage of overall business EBITDA could gas represent in the future? - Management refrained from providing an exact percentage but indicated that gas projects are expected to grow significantly as a portion of the overall business [104][105]