North American Midstream Valuing Total Return: Utilizing EV/EBITDA Growth and Dividend Yield in an Illustrative Framework; KNTK and KGS Stand Out

Research evidence excerpt

North American Midstream Valuing Total Return: Utilizing EV/EBITDA Growth and Dividend Yield in an Illustrative Framework; KNTK and KGS Stand Out

J P M O R G A N North America Equity Research

27 May 2026

North American Midstream

Valuing Total Return: Utilizing EV/EBITDA Growth and

Dividend Yield in an Illustrative Framework; KNTK and

KGS Stand Out

Taking a page from our utilities analysis, we examine how much the market will Head of North America Power,

pay (EV/EBITDA) for expected total shareholder return (growth + yield) across Utilities, Midstream, LNG, and

US C-Corps and then Canadians. Our framework utilizes a 2027 base year from Nuclear

which we compare the EV/EBITDA to our expected two-year EBITDA CAGR Jeremy Tonet, CFA AC

into 2029. In contemplating total shareholder return, we use 2029 dividend yield (1-212) 622-4915

in addition to the aforementioned EBITDA growth (a proxy for share jeremy.b.tonet@jpmorgan.com

appreciation). We view this framework as a tool to analyze how much the market Vrathan Reddy

will pay relative to the total return profile, and which names screen attractive at (1-212) 622-4692

vrathan.reddy@jpmchase.com

current levels. Walking through sub-categories, the (EV/EBITDA)/total return

Eli Jossen, CFA

median lands at 0.96x for US C-Corps and 1.22x for Canadians. We see those

(1-212) 622-4113

trading below these levels as likely offering either attractive value or possessing eli.jossen@jpmchase.com

notable risk to expected EBITDA growth. By contrast, those trading at higher ratios Francina Kolluri

might deliver growth higher than expectations, or represent overvalued (1-212) 270-5796

companies. francina.kolluri@jpmchase.com

J.P. Morgan Securities LLC

• KNTK & KGS lead C-Corps. KNTK and KGS screen most attractive on