Kinder Morgan's Expanding Backlog: Powering the LNG & Electricity Boom

Kinder Morgan Inc. KMI, a leading midstream energy company, has seen a surge in its project backlog in the June quarter of 2025. The backlog grew to $9.3 billion from $8.8 billion, reflecting strong demand for its services and thereby securing incremental fee-based revenues. Thus, KMI will likely generate more cash flows for its shareholders.

In the June quarter, Kinder Morgan took on $1.3 billion in new projects, which is quite encouraging. Key developments include the Trident Phase 2 project and the Louisiana Line Texas Access project, both of which are designed to transport natural gas from Texas to Louisiana, a vital region for LNG (liquefied natural gas) exports. Interestingly, with the rising demand for LNG export, both long-term projects are backed by solid customer commitments, further reassuring incremental and reliable cash flows.

Interestingly, almost half of the backlog’s projects are backed by mounting power demand. With the rising need for electricity from the booming data centers and the growth in population, natural gas transportation and storage have become paramount, thereby glorifying Kinder Morgan’s business outlook.

Have EPD & ENB Also Secured Incremental Cash Flows?

Like KMI,Enterprise Products Partners LP EPD and Enbridge Inc. ENB also have a solid backlog of midstream developments.

Enterprise Products has a backlog of $5.6 billion of key midstream capital projects under construction with a maximum in-service date of 2026. Thus, EPD has secured additional cash flows for its unit holders.

Enbridge also has a total secured capital program of C$32 billion, with the company mentioning that capital that has been spent to date is C$7 billion. Thus, like EPD, ENB is also securing incremental cash flows.

KMI’s Price Performance, Valuation & Estimates

Shares of KMI have gained 34.3% over the past year compared with the 29.2% improvement of the industry.

From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.77X. This is below the broader industry average of 13.95X.

The Zacks Consensus Estimate for KMI’s 2025 earnings has been revised upward over the past 30 days.

Kinder Morgan stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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