Kinder Morgan (KMI) update - Jan 21

Kinder Morgan (KMI) update - Jan 21

Postby dan_s » Thu Jan 21, 2021 12:07 pm

From Stifel

Kinder Morgan, Inc. (KMI, $15.59, Buy; Target $17.00)
KMI Reports In Line Quarter As Business Model Remains Resilient - Selman Akyol

Kinder Morgan reported results in line with our expectations and is comfortable with current leverage levels. We expect KMI to maintain their leverage at 4.6x and primarily allocate capital towards growth and returns to shareholders. Kinder has already guided to a 3% increase in distributions and expects $800 million in growth capital in 2021. Kinder has budgeted $450 million in opportunistic share repurchases in 2021, providing them flexibility. Kinder believes their footprint is well positioned to grow as the "energy transition" unfolds. Additionally, KMI is already participating in "energy transition" businesses like ethanol, biodiesel and renewable diesel and sees them as potential growth avenues. Finally, KMI noted potential opportunities longer-term around hydrogen, CO2 and more, while highlighting their pipeline system already can move hydrogen. We are maintaining our Buy rating and $17.00 target price and will revisit estimates following Kinder Morgan's Investor Day (Jan 27th).
Dan Steffens
Energy Prospectus Group
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