Investor attention around Kinder Morgan (KMI) is building ahead of third quarter results on October 21, with expectations centered on earnings of $0.33 per share and revenue of $4.39b.
The Kinder Morgan share price has climbed to about $34.20, with a 1-day share price return of 4.2% and a 30-day share price return of 11.29%, which points to building momentum into the earnings date.
Scan Kinder Morgan’s peers that show similar pre earnings momentum and capital strength using our hand picked list of solid balance sheet and fundamentals (25 results) for comparison.
Kinder Morgan looks like a solid energy infrastructure business, and the recent 1 month jump in the share price underlines that story. The real question now is whether investors are paying a fair price for that stability.
Most Popular Narrative: 5% Undervalued
Kinder Morgan’s most followed valuation storyline puts fair value at $35.90, a touch above the recent $34.20 close. This frames the current rally as still within the bounds of that thesis rather than frothy.
The current roughly $9.6b Board approved growth backlog, which is mainly tied to take or pay natural gas projects with an average in service date in the first half of 2028, is expected by management to translate into about $1.7b of incremental EBITDA over time. This could lift Kinder Morgan’s future cash generation as these assets move from construction to operation. Major projects such as Mississippi Crossing, South System Expansion 4 and Trident in Texas and the Southeast, which are reported to be on schedule and on budget and already advancing through key permitting milestones, are positioned to connect growing LNG export and power demand to existing pipeline corridors and can add fee based transport revenue once fully in service.
See why 74 investors see Kinder Morgan as 5% undervalued.
Result: Fair Value of $35.90 (UNDERVALUED)
Still, the Kinder Morgan story can be knocked off course if the US$9.6b backlog faces permitting delays, or if heavier expansion spending pushes leverage toward management’s upper target range.
Find out about the key risks to this Kinder Morgan narrative.
Another View On Kinder Morgan’s Valuation
The most followed Kinder Morgan narrative leans on fair value around $35.90, yet the current P/E of 22.1x tells a different story. That figure is higher than both the US Oil and Gas industry at 12.5x and peers at 16.8x, and even above a fair ratio of 20.1x. This hints at less margin for error if growth or cash conversion disappoints. Which signal do you trust more: the discounted cash flow work or the richer earnings multiple on screen today?
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:KMI P/E Ratio as at Oct 2026
Next Steps
Sentiment around Kinder Morgan is split between concern and optimism, which is exactly when it pays to move fast and review the numbers yourself. Before making any decisions, weigh both sides by reviewing the 3 key rewards and 2 important warning signs.
Looking for more Kinder Morgan sized ideas?
If Kinder Morgan has you thinking more broadly about opportunities, do not stop here. Use fresh screeners to spot stronger balance sheets, income plays, and potential mispricings before others do.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include KMI.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
