Citi analyst Spiro M. Dounis maintained a Hold rating on Kinder Morgan (KMI – Research Report) today and set a price target of $19.00.
Spiro M. Dounis has given his Hold rating due to a combination of factors affecting Kinder Morgan’s earnings and growth potential. The adjusted estimates for the first quarter of 2024 EBITDA are slightly below the company’s budget, primarily due to lower commodity prices, reduced producer activity, and a warmer winter season. These elements have resulted in Kinder Morgan trending approximately 2% below its budget. Despite natural gas volatility, which could have provided some uplift early in the quarter, it likely wasn’t enough to counteract these negative factors.
Moreover, the expectation is that significant project contributions will be more heavily weighted towards the second half of 2024, which adds a degree of uncertainty in the near term. The report also hints at the possibility that share repurchases might be delayed until later in the year when there is greater clarity on budget adherence and the commodity market. Dounis’s Hold rating seems to reflect a cautious optimism, acknowledging potential growth from upcoming projects and expansions but tempered by short-term challenges and the need for further commercial progress.
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Kinder Morgan (KMI) Company Description:
Texas-based Kinder Morgan, Inc. is an energy infrastructure company. The company is engaged in the operation of pipelines and terminals that transport natural gas, gasoline, crude oil, carbon dioxide (CO2) and other products. It also stores petroleum products, chemicals and handles bulk materials like ethanol, coal, petroleum coke and steel. It operates through the following segments: Natural Gas Pipelines, CO2, Terminals, and Products Pipelines.
Read More on KMI:
- Kinder Morgan Engages Investors at Upcoming Conferences
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- Kinder Morgan Announces Sale of Senior Notes Worth $2.25 Billion
- Kinder Morgan (NYSE:KMI) Reports Disappointing Q4 Results
- Kinder Morgan reports Q4 natural gas transport volumes up 5% from last year
