Kinder Morgan, Inc. (KMI): A Top Natural Gas Stock for 2025

As the demand for natural gas continues to grow, driven by factors such as LNG exports, power generation, and emerging opportunities in AI-driven industries, Kinder Morgan, Inc. (KMI) is well-positioned to capitalize on this trend. With its extensive pipeline network and strategic investments in expansion projects and joint ventures, KMI is an attractive investment opportunity in the natural gas sector.

KMI's strategic investments in expansion projects and joint ventures play a crucial role in driving the company's growth and enhancing its competitive position in the natural gas market. The company recently sanctioned several major projects, including a $455 million expansion of the Gulf Coast Express (GCX) pipeline from the Permian Basin and a $3 billion South System 4 Expansion of its Southern Natural Gas Co. LLC system in the Southeast. These projects are expected to support 4% profit gains in 2025, as management indicated.



The company's guidance assumes a Henry Hub natural gas price of $3/MMBtu based on forward pricing during the budget process. NGI's Forward Look data show Henry Hub prices in 2025 ranging between $2.685 and $4.099, which validates the company's optimistic outlook on natural gas market fundamentals.

KMI's strong financial performance, dividend growth, and robust balance sheet further solidify its position as one of the best natural gas stocks to buy now. The company's earnings per share (EPS) increased by 11% and adjusted EPS up 14% in the fourth quarter of 2024 compared to the same period in 2023. KMI's net income attributable to KMI was $667 million, up from $594 million in the fourth quarter of 2023. The company's board of directors approved a cash dividend of $0.2875 per share for the fourth quarter, payable on February 18, 2025, marking a 2% increase over the fourth quarter of 2023.

In conclusion, Kinder Morgan, Inc. (KMI) is an attractive investment opportunity in the natural gas sector, with its extensive pipeline network, strategic investments in expansion projects and joint ventures, strong financial performance, and dividend growth. As the demand for natural gas continues to grow, particularly in data centers and AI-driven industries, KMI is well-positioned to capitalize on this trend and generate significant growth opportunities.