Kinder Morgan Inc
NYSE:KMI
Intrinsic Value
Kinder Morgan, Inc. operates as an energy infrastructure company. [ Read More ]
The intrinsic value of one KMI stock under the Base Case scenario is 23.93 USD. Compared to the current market price of 18.34 USD, Kinder Morgan Inc is Undervalued by 23%.
Valuation Backtest
Kinder Morgan Inc
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Fundamental Analysis
Healthy Growth and Acquisitions Boost Kinder Morgan
2023-Q4 Earnings Call
In their financial outlook for 2024, Kinder Morgan is projecting robust growth in EBITDA, EPS, and DCF per share, fueled by expansion CapEx and strategic acquisitions, primarily in the Natural Gas segment. The company expects to continue benefiting from the anticipated growth in natural gas production and demand, largely driven by LNG exports and exports to Mexico. They anticipate expanding their already significant system to leverage these opportunities. Despite closing 2023 slightly below budget, due to lower commodity prices, they completed a $1.8 billion Nextera South Texas acquisition, which fits well with their existing system servicing the Gulf Coast and Mexico. Updated guidance for 2024 includes a 15% growth in earnings per share and 8% growth in DCF per share over 2023, with the final budget assuming WTI of $82 per barrel and $3.50 for Henry Hub natural gas. For the fourth quarter of 2023, the company declared a dividend of $0.2825 per share, up 2% from 2022, continued its share repurchase program, and ended with a net debt to adjusted EBITDA of 4.2x. Performance in the Natural Gas and Terminals businesses was good, but commodity prices and milder winter weather led to lower overall earnings in some sectors.
Balance Sheet Decomposition
Kinder Morgan Inc
Current Assets | 2.5B |
Cash & Short-Term Investments | 83m |
Receivables | 1.6B |
Other Current Assets | 871m |
Non-Current Assets | 68.5B |
Long-Term Investments | 7.9B |
PP&E | 37.3B |
Intangibles | 22.1B |
Other Non-Current Assets | 1.2B |
Current Liabilities | 7.2B |
Accounts Payable | 1.4B |
Accrued Liabilities | 513m |
Other Current Liabilities | 5.3B |
Non-Current Liabilities | 33.5B |
Long-Term Debt | 28.1B |
Other Non-Current Liabilities | 5.4B |
Earnings Waterfall
Kinder Morgan Inc
Revenue
|
15.3B
USD
|
Cost of Revenue
|
-7.7B
USD
|
Gross Profit
|
7.6B
USD
|
Operating Expenses
|
-3.3B
USD
|
Operating Income
|
4.2B
USD
|
Other Expenses
|
-1.9B
USD
|
Net Income
|
2.4B
USD
|
Free Cash Flow Analysis
Kinder Morgan Inc
What is Free Cash Flow?
KMI Profitability Score
Profitability Due Diligence
Kinder Morgan Inc's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
Score
Kinder Morgan Inc's profitability score is 56/100. The higher the profitability score, the more profitable the company is.
KMI Solvency Score
Solvency Due Diligence
Kinder Morgan Inc's solvency score is 23/100. The higher the solvency score, the more solvent the company is.
Score
Kinder Morgan Inc's solvency score is 23/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
KMI Price Targets Summary
Kinder Morgan Inc
According to Wall Street analysts, the average 1-year price target for KMI is 20.85 USD with a low forecast of 17.17 USD and a high forecast of 24.15 USD.
Ownership
KMI Insider Trading
Buy and sell transactions by insiders
Period | Sold | Bought | Net |
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Shareholder Return
KMI Price
Kinder Morgan Inc
Average Annual Return | 5.99% |
Standard Deviation of Annual Returns | 25.9% |
Max Drawdown | -55% |
Market Capitalization | 40.7B USD |
Shares Outstanding | 2 219 370 000 |
Percentage of Shares Shorted | 1.5% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Kinder Morgan, Inc. operates as an energy infrastructure company. The company is headquartered in Houston, Texas and currently employs 10,529 full-time employees. The company went IPO on 2011-02-11. The firm operates through four segments, such as Natural Gas Pipelines, Natural Gas Pipelines, Terminals and CO2 segment. The Natural Gas Pipelines business segment consist of natural gas transportation, storage, sales, gathering, processing and treating, and various liquefied natural gas (LNG) services. The Products Pipelines business segment consists of its refined petroleum products, crude oil and condensate pipelines, and associated terminals. The Terminals business segment includes the operations of refined petroleum product, chemical, renewable fuel and other liquid terminal facilities (other than those included in the Products Pipelines business segment) and all of its petroleum coke, metal and ores facilities. CO2 business segment produces, transports and markets carbon dioxide (CO2) for use in enhanced oil recovery projects as a flooding medium for recovering crude oil from mature oil fields.
Contact
IPO
Employees
Officers
The intrinsic value of one KMI stock under the Base Case scenario is 23.93 USD.
Compared to the current market price of 18.34 USD, Kinder Morgan Inc is Undervalued by 23%.