Kinder Morgan operates as an energy infrastructure and energy company in North America. The company operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada, and Other segments. The company was founded in 2011 and is based in Houston, Texas.
KMI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kinder Morgan Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kinder Morgan Inc ranked in the 61th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 110.83%. In terms of the factors that were most noteworthy in this DCF analysis for KMI, they are:
47% of the company's capital comes from equity, which is greater than merely 24.82% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than merely 23.19% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KMI, try BOOM, GMLP, CVX, TNK, and NEBLQ.
Investment Thesis Economics and increasingly aggressive Renewable Portfolio Standard (RPS) laws will retire significant coal and nuclear generating capacity, now meeting 44% of the demand for electric power, increasing reliance on intermittent solar and wind capacity. Solar and wind market share will be limited by a lack of utility scale...
ISTJ Investor on Seeking Alpha | September 15, 2020
Kinder Morgan ([[KMI]] +2.5%) and Glenfarne Group ask the Federal Energy Regulatory Commission for five more years to complete the Magnolia LNG export plant and associated gas pipeline expansions.FERC approved construction of Magnolia LNG and related pipeline expansions in April 2016, requiring the companies to complete the project by April...
Units of Glenfarne Group LLC and Kinder Morgan Inc asked federal regulators for five more years to complete the Magnolia LNG export plant and associated gas pipeline expansions, according to filings made available on Monday. Glenfarne, which acquired the Magnolia project from LNG Ltd of Australia in May 2020, said "unforeseeable developments in the global LNG market have affected Magnolia LNG’s ability to enter into long-term LNG offtake contracts ... critical to securing project financing and achieving (final investment decision)," referring to purchase agreements for gas. Glenfarne has said it expects to decide late next year whether to build the Magnolia plant and the Texas LNG facility it is developing in Texas.