$ET

ET vs. KMI: Which Midstream Stock Has More Upside Potential for Now?

Energy Transfer's earnings outlook, higher yield and discounted valuation make it the more compelling midstream choice for now compared with Kinder Morgan.

Original reporting
Zacks Commentary · Jewel Saha
Published Nov 26, 2025, 3:12 PM UTC
Analysis
alphai AI DeskAI-generated
Added to alphai Nov 27, 2025, 1:01 AM UTC. Informational, not investment advice.
How this was made
alphai summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
ET vs. KMI: Which Midstream Stock Has More Upside Potential for Now? — source image
Decision brief

The 30-second read

$ETBullishMed
01

Why it matters

The favorable valuation and technical signals suggest a potential for near-term outperformance of ET relative to KMI, supporting a tactical trading approach.

02

Market read

The midstream energy sector is currently favoring companies with strong earnings outlooks and attractive valuations, with ET leading in short-term upside potential.

03

What to watch

Potential regulatory changes or pipeline project delays could impact midstream stocks adversely, which are not fully accounted for in current outlooks.

Timing: short to medium term (1-3 months)

Background

Recent earnings reports and valuation metrics favor ET over KMI, with ET trading at a discount and showing signs of technical strength.

Company-level read

Ticker impact

$ETBullishMedium confidence
Context

Midstream energy sector, with recent earnings outlook and valuation considerations.

Expected impact

Moderate upward price movement within the next 1-3 months, with potential gains of 5-10%.

Evidence & confidence

The positive earnings outlook and attractive valuation support a bullish bias; technical signals align with this view. However, broader market volatility and sector-specific risks introduce uncertainty.

$KMIBullishMedium confidence
Context

Major midstream energy company, with a bullish sentiment but less compelling valuation compared to ET.

Expected impact

Limited upside, with potential minor gains of 2-4% in the near term.

Evidence & confidence

While KMI remains fundamentally sound, its valuation premium reduces the likelihood of significant short-term gains. Market sentiment remains positive, supporting stability rather than aggressive upside.

$USEGNeutralLow confidence
Context

Small-cap energy company with minimal impact on midstream sector; low relevance due to low trading volume and relevance score.

Expected impact

Minimal to no impact on sector or stock price.

Evidence & confidence

Limited trading activity and low relevance score indicate minimal influence on sector trends or investment decisions.

Market effects

Positive sentiment for midstream energy stocks, especially those with attractive valuations and solid earnings outlooks.

Potential uplift in North American energy infrastructure stocks, with increased investor interest in midstream assets.

Limited; primarily regional impacts within North American energy markets.

Counterpoint

While ET appears more attractive now, potential risks include sector-wide downturns, rising interest rates affecting dividend-paying stocks, and macroeconomic uncertainties.

Key entities

  • Energy Transfer (ET)

    A major midstream energy company with diversified assets and a focus on natural gas and crude oil transportation.

  • Kinder Morgan (KMI)

    One of the largest energy infrastructure companies in North America, with extensive pipeline and storage assets.

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[ET Q2 2026 Earnings Call] Energy Transfer Posts $5.1B Adjusted EBITDA, Up 31%, and Raises Full-Year Guidance by $500M on Record Volumes — BigGo Finance

Energy Transfer (ET) reported Q2 2026 adjusted EBITDA of about $5.1B, up 31% from $3.9B a year earlier, and raised full-year 2026 adjusted EBITDA guidance to $18.8–$19.1B at the midpoint, about $500M higher. DCF to partners was about $2.6B. Hugh Brinson Pipeline entered commercial service, with 1.5 Bcf/d phase 1 expected by Sept. 1, 2026.

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Energy Transfer LP (ET): Results of Operations and Financial Condition

Energy Transfer LP (ET) filed an SEC Form 8-K — Results of Operations and Financial Condition. EX-99.1 2 ex991eterq22026.htm EX-99.1 Document ENERGY TRANSFER REPORTS SECOND QUARTER 2026 RESULTS AND UPDATES 2026 FINANCIAL GUIDANCE Dallas – August 4, 2026 - Energy Transfer LP (NYSE:ET) (“Energy Transfer” or the “Partnership”) today reported financial results for the quarter