Jim Cramer Says Kinder Morgan (KMI) Stock Shouldn’t Have Fallen This Far
Jim Cramer stated Kinder Morgan (KMI) is undervalued at 19x earnings, recommending it as a buy. KMI reported record Q2 results, with net income up 21% YoY to $867M and adjusted EBITDA up 12% to $2.2B. The company expects 2026 adjusted EBITDA to exceed original budget by over 5% and adjusted EPS by over 12%. KMI trades at 20.1x forward earnings, with a debt-to-EBITDA ratio of 3.6x.
How this was made

The 30-second read
Why it matters
The combination of record earnings and a high‑profile buy recommendation may trigger short‑term buying interest.
Market read
KMI's earnings beat and Cramer's endorsement could drive a near‑term price rally, especially in pre‑market trading.
What to watch
Backlog concentration in natural gas projects may expose KMI to commodity price volatility.
Background
Jim Cramer highlighted Kinder Morgan as undervalued during Mad Money, noting its 19x earnings multiple and dividend yield.
Ticker impact
Kinder Morgan reported record Q2 earnings with net income of $867M and adjusted EBITDA of $2.2B, beating estimates and prompting a bullish comment from Jim Cramer.
likely upward pressure as traders price in stronger earnings and Cramer's buy recommendation.
Earnings beat and forward earnings multiple remain attractive; Cramer's public endorsement can drive short-term buying.
Market effects
Strengthens the natural gas pipeline sector as demand for infrastructure remains robust.
U.S. energy infrastructure investors may see a modest rally.
Limited to energy infrastructure exposure; no broad macro impact.
Counterpoint
High debt levels and potential financing cost increases could limit upside.
Key entities
- companyKinder Morgan, Inc.
U.S. mid‑cap energy infrastructure firm reporting record Q2 results.


