Kinder Morgan Inc (KMI.N): Over a Billion Could Be an Understatement, Lifting TP to $34

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Kinder Morgan Inc (KMI.N): Over a Billion Could Be an Understatement, Lifting TP to $34

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28 Jul 2026 08:46:42 ET │ 14 pages

Kinder Morgan Inc (KMI.N)

Over a Billion Could Be an Understatement, Lifting TP to $34

CITI'S TAKE

Neutral We lift our TP to $34 from $33 to reflect base business outperformance

and improved outlook. The Company's upgraded '26 guidance trend still Short-Term View: Upside

appears conservative with commodity prices and base business Price (27 Jul 26 16:00) US$31.75

outperformance tailwinds likely persisting into 2H26 - driving our EBITDA Target price US$34.00↑

estimate >6% above budget. KMI appears well-positioned to sanction from US$33.00

over $1bln of additional projects beyond those board-approved in 2H26. Expected share price return 7.1%

Specifically, we estimate Western Gateway, Permian Link and TGP 219 Expected dividend yield 3.7%

South could represent >$2bln of capex to KMI, which paired with other

Expected total return 10.8% on-brand but unnamed projects could push the backlog above $11bln.

Market Cap US$70,701M Funding growth doesn't appear to be an issue; we estimate >$4bln of

balance sheet capacity based on our '26 EBITDA estimate and ~$3.3bln of

average annual cash flow available for growth through 2030. That said,

our estimated ~7% EBITDA CAGR through 2030 still trails peers in the Spiro DounisAC

double digits which we believe is appropriately captured in KMI's valuation +1-212-816-6926

discount. spiro.dounis@citi.com

Douglas Irwin

Valuation — We maintain our Neutral rating but lift our TP to $34 from $33 based +1-212-816-9525

on our NPV/DCF methodology. Our NPV imputes a 9.5% discount rate and ~7% cap douglas.irwin@citi.com

rate, both unchanged. Our TP implies a 12.4x multiple on '27 EBITDA.

Charles Bryant