Kinder Morgan stock rating reaffirmed at Outperform by Mizuho after solid Q2

Published 17/07/2025, 12:28

Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating and $32.00 price target on Kinder Morgan (NYSE:KMI) following the company’s second-quarter 2025 earnings report. According to InvestingPro data, analyst targets for KMI range from $24 to $38, with the stock currently trading near $28. The company’s current valuation appears to be above its Fair Value based on comprehensive analysis.

Kinder Morgan reported adjusted EBITDA of $1,972 million for the second quarter, aligning with both Street and Mizuho estimates of $1,965 million. The energy infrastructure company released these results Wednesday after market close. InvestingPro data shows the company has maintained strong profitability with a gross margin of 50.3% and has consistently paid dividends for 15 consecutive years, currently offering a 4.2% yield.

The company maintained its previous guidance while announcing significant additions to its backlog of organic growth projects focused on natural gas infrastructure assets. The project backlog increased by a net $0.5 billion ($1.25 billion gross) sequentially, with expansions coming from upsized intrastate projects and brownfield developments on NGPL and other assets. With a market capitalization of $62 billion and stable operations reflected in its low price volatility, KMI continues to demonstrate solid growth potential. Get deeper insights into KMI’s growth prospects with InvestingPro’s detailed research report, which includes 8 additional exclusive ProTips.

Mizuho highlighted an unexpected $0.5 billion expansion capital allocation to KMI’s KinderHawk gathering footprint in the Haynesville basin, which the firm believes will likely deliver solid returns as basin production increases.

The research firm also noted that recent budget passage has delayed cash tax impacts, while permitting changes could accelerate project timelines, contributing to what Mizuho characterized as "a solid update" for the energy infrastructure company.

In other recent news, Kinder Morgan Inc. reported its second-quarter 2025 earnings, meeting earnings per share (EPS) expectations and surpassing revenue forecasts. The company achieved an EPS of $0.28, aligning with analyst predictions, while revenue reached $4.04 billion, exceeding the projected $3.75 billion. Kinder Morgan’s net income was reported at $715 million, marking a 24% increase from the same quarter in 2024. The company attributed this growth to strategic project investments and increased volumes in key sectors. Additionally, Kinder Morgan announced a dividend of $0.925 per share, reflecting a 2% increase from 2024. Analysts noted that the company’s stock experienced minimal movement following the earnings release. Looking ahead, Kinder Morgan expects to exceed its 2025 budget, driven by contributions from the Outrigger acquisition and anticipates significant tax benefits in 2026 and 2027. The company continues to see substantial investment opportunities, bolstered by a robust project backlog.

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