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.
How this was made

The 30-second read
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.
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.
What to watch
Potential regulatory changes or pipeline project delays could impact midstream stocks adversely, which are not fully accounted for in current outlooks.
Background
Recent earnings reports and valuation metrics favor ET over KMI, with ET trading at a discount and showing signs of technical strength.
Ticker impact
Midstream energy sector, with recent earnings outlook and valuation considerations.
Moderate upward price movement within the next 1-3 months, with potential gains of 5-10%.
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.
Major midstream energy company, with a bullish sentiment but less compelling valuation compared to ET.
Limited upside, with potential minor gains of 2-4% in the near term.
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.
Small-cap energy company with minimal impact on midstream sector; low relevance due to low trading volume and relevance score.
Minimal to no impact on sector or stock price.
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
- CompanyEnergy Transfer (ET)
A major midstream energy company with diversified assets and a focus on natural gas and crude oil transportation.
- CompanyKinder Morgan (KMI)
One of the largest energy infrastructure companies in North America, with extensive pipeline and storage assets.

