KMI rides AI data-center gas demand and record Q2 earnings
Data-center gas demand drives $10B backlog Kinder Morgan's project backlog grew to $10.10 billion, including new data-center contracts. The company expects U.S. gas demand to jump 27% by 2031, with about 70% of future data-center power demand in states its pipelines already serve. This locks in long-term, fee-based cash flows.
Shows the core growth driver behind KMI's rising earnings and stock.
Record Q2 earnings beat on AI-driven gas demand KMI reported record Q2 net income of $867 million and adjusted EPS of $0.37, beating estimates by 12%. Gas pipeline volumes rose 7% from LNG exports, Mexico exports, and power generation. Full-year EPS is now expected to exceed the initial budget by 12%.
Directly shows the financial results that are pushing the stock up now.
LNG exports and power demand fuel growth Rising U.S. natural gas demand from LNG exports and gas-fired power is driving KMI's growth. Over 20% of its backlog serves LNG demand and about 60% serves power generation. U.S. LNG export capacity is projected to nearly double by 2030, boosting KMI's volumes.
Explains the long-term demand tailwinds behind KMI's expansion.
Valuation and debt remain a counterweight KMI's stock may be 10.6% undervalued, but its 21.3x P/E is well above the industry average of 12.9x, leaving little room for error. Heavy net debt and risks of overbuilding or weaker contract renewals could pressure future cash flows if growth slows.
Provides the fair counterweight to the bullish drivers.