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Do Insider Sales Clash With Kinder Morgan’s Upbeat Earnings Outlook And Income Story (KMI)?

Simply Wall St · 4d ago
  • Kinder Morgan recently attracted attention for its steady cash generation, income-focused profile, and upcoming earnings report, alongside positive revisions to earnings and revenue estimates.
  • At the same time, insider share sales by a senior executive and a broader pattern of insider selling have added another layer for investors to interpret.
  • With earnings expectations being revised upward, we’ll examine how this improving outlook fits into Kinder Morgan’s longer-term investment narrative.

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Kinder Morgan Investment Narrative Recap

To own Kinder Morgan, you need to believe in the durability of its North American energy infrastructure and the cash flows that system can support over time. The recent earnings estimate upgrades reinforce that cash generation story in the near term, while the insider selling pattern does not appear to change the primary short term catalyst, which remains the upcoming earnings release, or the key risk around Kinder Morgan’s sizeable debt load and interest coverage.

The most relevant recent development here is the series of upward revisions to Kinder Morgan’s earnings and revenue estimates following its last quarter, when it increased revenue and met earnings expectations. Those revisions tie directly into the earnings announcement ahead, which is where the market will test whether Kinder Morgan’s fee based pipeline model is still offsetting headwinds such as leverage, aging assets, and evolving energy policy.

Yet alongside the income story, Kinder Morgan’s high net debt and interest coverage profile is something investors should be aware of, especially if...

Read the full narrative on Kinder Morgan (it's free!)

Kinder Morgan's narrative projects $20.2 billion revenue and $3.7 billion earnings by 2028. This requires 8.2% yearly revenue growth and about a $1.0 billion earnings increase from $2.7 billion today.

Uncover how Kinder Morgan's forecasts yield a $31.06 fair value, a 15% upside to its current price.

Exploring Other Perspectives

KMI 1-Year Stock Price Chart
KMI 1-Year Stock Price Chart

Three members of the Simply Wall St Community currently see Kinder Morgan’s fair value between US$31.06 and US$42.21, showing a wide band of expectations. Against that backdrop, Kinder Morgan’s high leverage and interest obligations may influence how you weigh those community views against the company’s cash flow and dividend profile over time.

Explore 3 other fair value estimates on Kinder Morgan - why the stock might be worth just $31.06!

Build Your Own Kinder Morgan Narrative

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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.