Kinder Morgan, Inc. (KMI): A Bull Case Theory

We came across a bullish thesis on Kinder Morgan, Inc. on Stock Picker's Journey’s Substack by Gregg Jahnke. In this article, we will summarize the bulls’ thesis on KMI. Kinder Morgan, Inc.'s share was trading at $28.01 as of July 30^th. KMI’s trailing and forward P/E were 22.96 and 21.69, respectively according to Yahoo Finance.

Kinder Morgan (KMI) is being re-evaluated as a growth stock rather than just a yield play, following a highly encouraging earnings call that has strengthened investor conviction. Originally a candidate for trimming at $30 after a steady climb from $17, KMI is now seen as a top-10 portfolio idea with $40+ upside potential. The company’s strategic position in U.S. energy infrastructure is unmatched—40% of all U.S. LNG exports flow through its pipelines, and with America pushing export-driven trade policy, this structural advantage is only becoming more valuable.

Beyond exports, KMI’s pipeline network is also increasingly tied to the data center boom, particularly in the Western U.S., where major new projects will need reliable gas supply. Regulatory winds are shifting in KMI’s favor: with a Republican-led FERC and faster permitting by the Army Corps of Engineers, the environment is primed for a capital investment cycle. KMI also disclosed that due to tax rule changes, it expects to avoid paying cash taxes in 2026 and 2027—providing meaningful support to cash flows.

While the company already has a solid backlog, management hinted at a significant wave of new projects post-2026, bolstering optimism. KMI stands out even at a 4% yield, offering more compelling risk-reward than similar-yielding utilities like Evergy. Peer comparisons are unflattering—Williams and Antero have already rallied, and concerns remain around Canadian regulatory risk for TRP. The only pipeline builder, Primoris, has already tripled. In this context, KMI emerges as a rare infrastructure play with growth, yield, and policy tailwinds converging.

Previously, we covered a bullish thesis on Kinder Morgan, Inc. by Gregg Jahnke in October 2024, which highlighted the company’s strong backlog growth tied to AI demand and U.S. manufacturing reshoring. The stock has appreciated approximately 13% since our coverage, as capital spending picked up. Gregg Jahnke shares an identical view but now emphasizes KMI’s growth identity and regulatory tailwinds.

Kinder Morgan, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held KMI at the end of the first quarter which was 55 in the previous quarter. While we acknowledge the potential of KMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.