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Technology Stocks : KMI- a fallen high dividend yielder - for how long?
KMI 26.08-0.3%9:30 AM EDT
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From: accountant7/23/2025 11:28:36 AM
4 Recommendations

Recommended By
Jon Koplik
Lance Bredvold
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To: Johnny Canuck who wrote (64704)7/23/2025 3:39:54 AM
From: Johnny Canuck Read Replies (1) of 64708
Buy Kinder Morgan Stock. Natural Gas and AI Are a Potent Combination.

Summarize this article: barrons.com

ChatGPT said:

Here are the key takeaways from Barron’s article “Buy Kinder Morgan Stock. Natural Gas and AI Are a Potent Combination.” MarketWatch+7Barron's+7Barron's+7:

?? 1. Natural Gas + AI = Powerful Tailwinds
  • Rising demand driven by LNG exports and expanding data-center/AI growth is benefiting pipeline operators like Kinder Morgan.

  • Barron’s notes that natural gas is having a moment, making Kinder Morgan a strategic pick for investors. Barron's+5Barron's+5Reuters+5 Finviz

?? 2. Strategic Infrastructure in Prime Locations
  • Kinder Morgan's existing pipelines, especially in Texas and Arizona, align with booming data-center hubs.

  • The company enjoys a monopoly-like presence—its size and regional footprint are not easily replicated. Barron's+1Investors+1

??? 3. Supportive Policy Environment
  • The current U.S. administration has reversed LNG export permit restrictions, facilitating infrastructure expansion.

  • Despite U.S.–China trade tensions, global LNG demand remains strong, particularly in Europe and Asia. Barron's+1Reuters+1

?? 4. Solid Financials
  • Analysts expect EPS growth >10% in 2025, targeting roughly $1.27 per share.

  • Kinder Morgan operates primarily on fee-based contracts, limiting its exposure to commodity price swings (around 5% EBITDA exposure).

  • It maintains a strong balance sheet able to fund $3.2?billion capex and $2.6?billion in dividends. MarketWatch+6Barron's+6Reuters+6

?? 5. Attractive Yield & Valuation
  • The stock currently yields ~4.1%, supported by consistent cash flow and dividends.

  • Barron’s points out that Kinder Morgan is reasonably priced and trading favorably compared to its January highs. Reuters+5Barron's+5MarketWatch+5

?? 6. Analyst Support & Price Targets
  • Analysts have lifted price targets to around $32 as 2025 growth expectations increase.

  • Consensus calls Kinder Morgan a “Buy” in the midstream energy space. Barron's+1Finviz+1

??? 7. Macro Risks, But Well-Positioned
  • Barron’s acknowledges tariffs and policy uncertainty could affect the broader energy sector but suggests Kinder Morgan is largely insulated due to its fee-based model and diversified demand sources. Barron's+1Reuters+1

??? Summary Table

ThemeInsight
Demand driversLNG export growth + AI/data centers
Infrastructure advantageMonopoly-like reach in key regions
Policy tailwindLNG permit relaxations, global demand
Financial strength>10% EPS growth, solid cash flow, ~4.1% yield
Market sentimentStrong analyst support, $32 target
Risk profileStable contracts, limited commodity exposure


Bottom line:
Kinder Morgan stands out in the energy sector as a well-positioned play on growing natural-gas demand, significantly amplified by the expansion of AI and data-center infrastructure. With robust financials, supportive policy, and a compelling dividend, analysts are bullish—though macro risks remain on the radar.
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