Kinder Morgan: A Record Second Quarter That Still Does Not Move My Rating

Kinder Morgan (KMI) delivered record Q2 net income and adjusted EBITDA, raising full-year guidance above budgeted levels. KMI's fee-based, contract-backed business model offers stability, but current valuation—21.7x 2027 P/E and 11.6x EV/EBITDA—limits upside. Backlog conversion, project execution, and leverage management are key; shadow backlog and signed contracts could shift the investment case. I maintain a Hold rating: dividend yield is attractive, but growth and valuation do not justify a Buy at current levels.

Kinder Morgan (NYSE: KMI ) reported this week its earning, with a record second-quarter net income of $867 million and record second-quarter adjusted EBITDA of $2,199 million, up 12% from last year. Management raised the guidance for the