Kinder Morgan, Inc.

(New York Stock Exchange)
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Bullish +65

Kinder Morgan stock: Argus lifts target after strong third quarter

Analyst upgrade Financial outlook AI-generated analysis

πŸ“ˆ Argus raised Kinder Morgan's price target from $38 to $40 while maintaining a Buy rating following strong Q3 results.

πŸ’° KMI reported adjusted net income of $792 million for the third quarter, beating analyst estimates.

πŸ“Š Adjusted earnings per share reached $0.35, exceeding Argus's estimate of $0.34 and StreetAccount's $0.32.

πŸš€ The company raised its 2026 adjusted EBITDA outlook to $9.12 billion and EPS guidance to $1.54.

β›½ Natural Gas Pipelines contributed higher earnings driven by increased volumes and power-generation demand.

πŸ’¨ CO2 business performance improved due to stronger commodity prices supporting that segment.

🚒 Terminals division benefited from higher tanker fleet rates, boosting overall quarterly revenue.

πŸ“ˆ Argus updated its 2026 earnings estimate to $1.54 per share after incorporating the company's revised outlook.

πŸ—οΈ KMI remains an infrastructure operator with earnings tied to volumes, demand, and commodity price fluctuations.

Bullish Signals
  • Kinder Morgan reported adjusted net income of $792 million for the third quarter, exceeding analyst estimates from Argus and StreetAccount.
  • The company raised its 2026 adjusted EBITDA outlook to $9.12 billion and adjusted EPS guidance to $1.54 per diluted share.
  • Natural Gas Pipelines delivered higher contributions due to increased volumes and rising power-generation demand.
  • Stronger commodity prices directly supported improved performance in the CO2 business segment.
  • The Terminals division saw earnings benefits from higher tanker fleet rates during the quarter.
  • Argus maintained a Buy rating on KMI stock while lifting the price target from $38 to $40.
Full Analysis
Kinder Morgan (KMI) received a price target increase from brokerage firm Argus following the release of strong third-quarter financial results. The infrastructure operator reported adjusted net income of $792 million for the quarter, translating to adjusted earnings per share of $0.35. This performance exceeded both Argus's estimate of $0.34 and the broader StreetAccount consensus estimate of $0.32. Argus maintained its Buy rating on KMI stock while lifting the price target from $38 to $40. The company also revised its full-year 2026 outlook upward, projecting adjusted EBITDA of $9.12 billion and adjusted diluted earnings per share of $1.54. Argus updated its own 2026 earnings estimate to match the company's new guidance of $1.54 per share. The strong quarterly performance was driven by higher contributions across Natural Gas Pipelines, CO2 operations, and Terminals. Pipeline volumes increased alongside power-generation demand, while stronger commodity prices supported the CO2 business segment. Additionally, improved tanker fleet rates benefited the Terminals division, contributing to the overall beat in earnings and revenue. KMI's future earnings profile remains sensitive to volumes, power-generation demand, commodity prices, and tanker rates. The revised guidance provides a higher benchmark for investors to evaluate subsequent quarterly updates. Analysts note that the mix of recurring revenue and market-sensitive contributions will be critical for assessing the company's trajectory in the coming year.