KMI has large projects coming on line n 2026 H1.
KMI is situated to have advantaged assets far out into the future.
This stock is now boasting a solid balance sheet and being rewarded with a BBB+ rating.
With 40% of the US natural gas flows, adding huge projects in its backyard is a long term money maker and
a valid expectation for larger dividend 9ncreases.
My first purchase of KMI came as KMI reduced their dividend from $2.00 to $.50. I contemplated selling but read an article that highlighted the fairly quick recovery in earnings AND dividends.
So I was assigned 1000 shares at $35.00 as I watched dive to the 12's. I decided to just double down and sell puts in the 16 to 18 price range.
I took 8 years of "adding to - mostly by selling naked puts), but I am now on a double with the yield on cost now at 8.36%. (cost of $14.24 with the new dividend at $1.19.
Eight years is a long-term BUY and HOLD, but slow safe investing does have a very beneficial long-term result while compounding dividends in combination with put premium when they expire to $00.00.
This one goes in the "fuggetaboutit drawer" with the exception of four glorious "Dividend Payable" days.
Still waiting for the long promised $1.25 dividend but shoring up the balance sheet has now been achieved.
Now to self-fund a growing backlog as the business finds new uses of natural gas Data centers.
“Massive fossil fuel infrastructure is being developed, often directly at the source of gas supply, in order to feed speculative AI demand,” said Jenny Martos, project manager for GEM’s Global Oil and Gas Plant Tracker.
Developer Fermi America applied for air permits in August for 6 GW of gas power to supply data centers at its planned complex near Amarillo. In November, Chevron announced plans to build its first-ever power plant, which would produce up to 5 GW of power for artificial intelligence in West Texas.
These are enormous volumes of energy, enough to power mid-sized cities. During 2025, the pipeline of gas power projects in development in Texas grew by nearly 58 GW of generation capacity, according to the GEM report, more than the peak power demand of the state of California.
Only China, with 50 times the population and 15 times the land, has more gas power projects in development than Texas, the GEM report said. Nearly half of all upcoming gas power projects in Texas, totalling 40 GW of capacity, are planned to directly power data centers, the report said.
“There is just an explosion of these things,” said Griffin Bird, a research analyst who tracks gas plants for the nonprofit Environmental Integrity Project in Washington, D.C. “We’re having such a tough time staying on top of new projects.”
KMI at 35 ish?
Bob |
