Kinder Morgan: Quietly Doing Everything Right
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryKinder Morgan (KMI) remains a high-quality midstream operator with a reaffirmed 'buy' rating due to consistent growth, stable fundamentals, and prudent capital allocation.KMI’s net leverage ratio is declining, projected to reach 3.80 by 2026, signaling a lower risk profile and increased financial flexibility versus peers.Dividend growth remains steady, with the 2024 yield at 4.26% and a ninth consecutive annual increase expected, supported by robust cash flows and disciplined payout ratios.While KMI is not the cheapest on a price to cash flow basis, its stability, contract structure, and ongoing investments justify a premium relative to most competitors.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » JHVEPhoto/iStock Editorial via Getty Images Over my time as an investor, I have come to really appreciate pipeline operators. Many investors who feel similarly gravitate toward them because of the consistent and hefty distributions that they offer. Personally, I care more about growthThis article was written byDaniel Jones36.22K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of ET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.