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Kinder Morgan Inc. (NYSE:KMI) shares soared to a 52-week high of $30.24, reflecting a remarkable year of performance for the energy infrastructure company. Investors have witnessed a substantial appreciation in value, with Kinder Morgan's stock price surging 81.2% over the past year. The company, now valued at $67 billion, maintains a steady 3.8% dividend yield and has raised dividends for 7 consecutive years, according to InvestingPro data. This impressive ascent underscores the company's resilience and strategic initiatives that have resonated well with the market, even as the energy sector experiences dynamic shifts. The 52-week high milestone is a testament to Kinder Morgan's strong operational results and its ability to capitalize on the increasing demand for energy infrastructure amid a recovering global economy. However, InvestingPro analysis indicates the stock is currently trading above its Fair Value, with technical indicators suggesting overbought conditions. InvestingPro subscribers have access to 12 additional key insights about KMI's valuation and growth prospects through the comprehensive Pro Research Report.
In other recent news, Kinder Morgan has seen several positive developments. Mizuho (NYSE:MFG) Securities has raised its price target for Kinder Morgan to $33, maintaining an Outperform rating, highlighting the company's growth prospects. This move follows Kinder Morgan's impressive 81.2% return over the past year. The company's growth trajectory has been reinforced by a capital expenditure budget for 2025 that exceeded market expectations and a significant $640 million acquisition in the Bakken region.
In addition to this, Kinder Morgan is expanding its operations with a $640 million acquisition of natural gas assets from Outrigger Energy II LLC. This acquisition is expected to close in the first quarter of 2025 and includes a 270 MMcf/d processing facility and a 104-mile pipeline in the Williston Basin. Furthermore, Kinder Morgan's subsidiary, Tennessee Gas Pipeline, is proceeding with the $1.4 billion Mississippi Crossing Project, expected to be operational by November 2028.
Analyst firms such as Citi, RBC Capital Markets, and Goldman Sachs have upgraded Kinder Morgan's target price, noting the company's potential for major expansion projects and growth in natural gas demand. In parallel, Phillips 66 (NYSE:PSX) is selling its 25% non-operated equity interest in the Gulf Coast Express Pipeline to an affiliate of ArcLight Capital Partners (WA:CPAP), LLC for $865 million. The transaction is expected to close in January 2025. These are among the recent developments for both Kinder Morgan and Phillips 66.
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