Kinder Morgan (KMI) is "well-positioned" to benefit from rising natural gas and power demand, supportive commodity prices and its growing project backlog, RBC Capital Markets said in a report emailed Friday.
The company has a greater likelihood of exceeding expectations than missing them amid increased export activity and commodity price tailwinds, said the firm, which expects the company to report Q2 earnings on July 22.
The firm raised its 2026 earnings before depreciation and amortization estimate for the CO2 segment following higher oil prices and the impact of the Monument acquisition.
Kinder Morgan's project pipeline also continues to advance, with the GCX expansion expected to enter service in June and the SSE4 expansion and MSX Pipeline on track to receive federal permits by the end of July, the firm said. Discussions on the Western Gateway project are ongoing, while more projects could be added to the company's backlog, according to the report.
RBC maintained the company's sector perform rating and $35 price target.
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