UBS Sticks With Buy Rating on Kinder Morgan (KMI)

Kinder Morgan, Inc. (NYSE:KMI) is one of the 10 Best Oil and Gas Stocks to Buy Now. On June 11, UBS maintained its “Buy” rating on Kinder Morgan, Inc. (NYSE:KMI) with a price target of $38. The research firm highlighted that the company will see a full quarter contribution from its Outrigger acquisition.

UBS slightly raised its estimate for Kinder Morgan, Inc.’s (NYSE:KMI) EBITDA for the second quarter of 2025. The firm’s new estimate is $1.932 billion, up from the previous $1.929 billion. This forecast is about 0.6% higher than the company’s own guidance of $1.92 billion. UBS pointed out that Kinder Morgan, Inc.’s (NYSE:KMI) guidance does not include any contribution from the Outrigger acquisition.

The new estimate takes into account the full-quarter impact of the acquisition, higher operating costs in the first quarter for natural gas pipelines due to timing issues, and benefits from higher natural gas prices.

The analysts believe that the first quarter did not show the full impact of the Outrigger acquisition. This was because transaction costs offset 1.5 months of contribution from Outrigger. UBS analysts noted that the second quarter will be “the first clean quarter” for evaluating the impact of the acquisition.

Kinder Morgan, Inc. (NYSE:KMI) is one of North America’s largest energy infrastructure companies. It owns and operates pipelines and terminals. The company’s pipelines transport natural gas, gasoline, and crude oil.

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