Kinder Morgan Receives Approval to Increase LNG Exports
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2026
0mins
Should l Buy KMI?
Source: seekingalpha
Kinder Morgan's stock fell 3.39% and hit a 20-day low amid strong gains in the broader market, with the Nasdaq-100 up 3.35% and the S&P 500 up 2.58%.
The company received approval from the U.S. Department of Energy to export an additional 28.25 Bcf of LNG annually from its Elba Island facility, marking a 22% increase over its previous authorization. This immediate implementation capability positions Kinder Morgan favorably in the global energy supply chain, enhancing its competitive edge amid rising LNG demand and potentially leading to significant revenue growth.
Despite the positive news regarding LNG exports, Kinder Morgan's stock price decline reflects sector rotation, as investors may be reallocating capital towards other energy stocks that have performed better recently.
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Analyst Views on KMI
Wall Street analysts forecast KMI stock price to rise
14 Analyst Rating
8 Buy
6 Hold
0 Sell
Moderate Buy
Current: 31.520
Low
27.00
Averages
31.62
High
36.00
Current: 31.520
Low
27.00
Averages
31.62
High
36.00
About KMI
Kinder Morgan, Inc. is an energy infrastructure company. The Company owns an interest in or operates approximately 79,000 miles of pipelines and 139 terminals. Its Natural Gas Pipelines segment includes ownership and operation of interstate and intrastate natural gas pipeline and storage systems and natural gas gathering systems and natural gas processing and treating facilities. Its Products Pipelines segment includes ownership and operation of refined petroleum products, crude oil and condensate pipelines that primarily deliver, among other products, gasoline, diesel and jet fuel, crude oil and condensate to various markets, plus the ownership and/or operation of associated product terminals and petroleum pipeline transmix facilities. Its Terminals segment includes ownership and/or operation of liquid and bulk terminal facilities and Jones Act-qualified tankers. Its CO2 segment is engaged in the production, transportation and marketing of CO2 to oil fields.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growing Energy Demand: The importance of pipeline infrastructure has become increasingly evident with the closure of the Strait of Hormuz, highlighting the critical role of Saudi Arabia and UAE pipelines in mitigating supply disruptions amid rising global energy needs.
- Enbridge Expansion Plans: Enbridge is set to approve over CA$10 billion ($7.4 billion) in new gas transmission projects by 2030, while its existing CA$39 billion ($28.7 billion) expansion projects are expected to drive 5% annual earnings growth, supporting its long-standing dividend yield.
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- Kinder Morgan Development Strategy: Kinder Morgan has over $10 billion in growth capital projects in its backlog, primarily for gas infrastructure, which is expected to sustain its nearly 4% dividend growth and support future profitability.
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- Increased Shareholder Returns: Piper Sandler returned $171 million to shareholders in Q1, including $1.425 per share in dividends and $70 million in share repurchases, demonstrating strong cash flow and commitment to shareholder value.
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- Earnings Growth Drivers: Although Energy Transfer does not produce oil, approximately 10% of its earnings are commodity price-linked, which are expected to rise with oil prices, while increased volumes through its liquids pipelines and marine export terminals will further boost revenue.
- LNG Project Restart Possibility: The closure of the Strait of Hormuz has disrupted global LNG supplies, prompting Energy Transfer to reconsider its Lake Charles LNG project, with potential discussions with partners that could add long-term value to its gas pipeline business.
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See More
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- LNG Project Restart Potential: Although the Lake Charles LNG project was suspended last year, the closure of the Strait of Hormuz, disrupting 20% of global LNG supplies, may prompt Energy Transfer to find a new partner to restart the project, adding long-term value to its gas pipeline business.
- Increased Pipeline Volumes: With U.S. energy exports surging due to geopolitical tensions, Energy Transfer expects significant increases in volumes across its liquids pipelines and marine export terminals, which will drive higher fee-based income and further boost unit prices.
- Valuation Upside Anticipation: Despite a more than 20% rise in unit price this year, Energy Transfer still trades at a discount compared to large-scale energy midstream companies, suggesting that the market may soon recognize its strong financial position and growth prospects, potentially driving unit prices towards the $25 target.
See More
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