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 66th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Kinder Morgan Inc, consider:
Kinder Morgan Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 10.79% of tickers in our DCF set.
As a business, Kinder Morgan Inc experienced a tax rate of about 17% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 75.91% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BKR, PARR, COP, GMLP, and TTI can be thought of as valuation peers to KMI, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Kinder Morgan (KMI) -1.8% pre-market as Goldman Sachs downgrades shares to Sell from Neutral with a $15 price target, nicked from $16, citing relative valuation vs. large-cap midstream peers.Goldman analyst Michael Lapides says while Kinder Morgan offers exposure to the defensive interstate natural gas pipeline footprint in a volatile energy...
The Tulsa company’s main business is operating a 9,800-mile pipeline network that carries gasoline, diesel fuel, and other petroleum products from refineries in Texas and the Midwest throughout the central part of the country. The distribution—the master limited partnership’s form of dividends—appears secure despite the economic downturn that has cut fuel demand. The depressed price reflects in part investors’ distaste for the energy industry and the once-hot pipeline business.
The Sierra Club asks a federal judge to halt construction of Kinder Morgan's ([[KMI]] +0.1%) $2B Permian Highway Pipeline, arguing that the U.S. Army Corps of Engineers avoided federal environmental laws when it issued a federal permit.The group's request for injunction alleges Army Corps officials approved the project without the...