Kinder Morgan's Backlog And Demand Trends Keep 2025 EBITDA On Track, Says Goldman

Goldman Sachs analyst John Mackay shared views on Kinder Morgan, Inc. KMI, which reported first-quarter earnings on Wednesday after market close.

The energy infrastructure company reported revenue of $4.24 billion, missing the consensus estimate of $4.08 billion, and adjusted quarterly earnings of 34 cents per share, which fell short of analyst estimates of 35 cents per share.

Kinder Morgan expects full-year 2025 earnings of $1.27 per share versus Benzinga Pro estimates of $1.28 per share and net income attributable to the company to be up 8% compared to 2024.

Mackay writes that weaker-than-expected product performance, largely due to maintenance on a condensate splitter, contributed to the earnings shortfall, though the gas business remains healthy.

Also Read: Goldman Sachs Forecasts High Gas Prices And LNG Demand Drive Kinder Morgan’s Revenue

Management expressed confidence in achieving its full-year 2025 EBITDA target of approximately $8.35 billion, even in a less favorable economic environment (vs. GS estimates: $8.32 billion; consensus: $8.37 billion), the analyst notes.

Overall, the analyst believes that the reaffirmed EBITDA outlook, growing backlog, and strong demand signals paint a constructive picture.

Mackay says that for the rest of the year, key areas of focus include how the broader economic environment aligns with what was originally factored into company guidance, especially given recent pricing trends that show strength. At the same time, future commodity prices and volumes could soften.

Attention will also be on upcoming announcements for both smaller and larger-scale projects, with interest in how these initiatives progress in the near term, adds the analyst.

The analyst reiterated a Buy rating with a price target of $31.

Investors can gain exposure to the stock through the Global X MLP & Energy Infrastructure ETF MLPX and the Ultimus Managers Trust Westwood Salient Enhanced Midstream Income ETF MDST.

Price Action: KMI shares are up 1.86% at $27.45 at the last check Thursday.

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