$KMI

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.

The energy sector (XLE) rose 16% in Q3, outperforming the broader market (SP500) due to Middle East tensions and high oil prices. Marathon Petroleum (MPC) gained 48%, while Texas Pacific Land (TPL) fell 20%. Analysts cited geopolitical uncertainty and refining margins as key factors.

The 10-year Treasury yield rose to 5.29% in September, impacting dividend stocks. Five companies—Williams Companies (WMB), Kinder Morgan (KMI), Duke Energy (DUK), Southern Company (SO), and OGE Energy (OGE)—are highlighted for their dividend safety and growth, supported by fee-based pipeline contracts and regulated power rates. Each company's dividend yield, payout ratio, and growth prospects are analyzed, with varying risks and bullish cases presented.

Kinder Morgan (KMI) and Williams (WMB) both exceeded Q2 2026 revenue estimates, with $4.48B and $3.05B respectively. Kinder's free cash flow covered its dividend, while Williams relied on borrowing. Both companies have different dividend strategies and leverage levels, with Kinder's dividend considered better covered.

Five midstream energy companies—EPD, ET, MPLX, WMB, and KMI—highlighted for raising dividends despite market cycles. EPD yields 5.87%, ET 6.56%, MPLX 7.32%, WMB 2.88%, and KMI 3.76%. All have multiyear contracts insulating payouts from oil price swings, with U.S. LNG export capacity expected to reach 27.7 Bcf/d by 2030. Each company's financials and growth prospects are detailed, including record cash flows and planned expansions.

UBS selected top stocks in U.S. Energy, Mining, and Utilities sectors, highlighting growth catalysts. Nexpower (NXT) may raise 2030 revenue target to $6.6B. Canadian Natural (CNQ) targets 1,660k boe/d by 2026. First Quantum (FM) focuses on Cobre Panama restart. Kinder Morgan (KMI) added $650M to project backlog. Devon Energy (DVN) plans divestitures. Liberty Energy (LBRT) expects 500MW of energy agreements. American Water (AWK) awaits merger approvals.

Stifel highlights eight oil and gas stocks, citing sector financial discipline and regulatory benefits. Antero Resources (AR) and Range Resources (RRC) are noted for gas market fundamentals. EOG Resources (EOG) is monitored for Utica volatile oil window and Middle Eastern exploration. SM Energy (SM) focuses on synergy targets post-merger. Occidental Petroleum (OXY) maintains strong free cash flow.

Energy Transfer (ET) and Kinder Morgan (KMI) are highlighted as high-yield dividend stocks. ET reported Q2 2026 revenue of $34.3B, up 78% YoY, with a 6.32% dividend yield. KMI reported Q2 revenue of $4.48B, up 10% YoY, with a 3.77% dividend yield. Both companies benefit from long-term contracts and energy demand.

Jefferies reduced its price target for Kinder Morgan (KMI) to $33 from $35, citing project timing concerns, while maintaining a Hold rating. The stock trades at $31.31. KMI reported strong Q2 results, beating earnings and revenue estimates, and raised its 2026 guidance. The company's dividend yield is 3.87%, and it has raised dividends for 8 consecutive years.

Kinder Morgan (KMI) plans $1.4B in new gas projects, targeting $1.7B in incremental EBITDA. The company expects U.S. natural gas demand to rise to 160 Bcf per day by 2035, driven by LNG exports and power demand. Projects include expansions in Appalachia, Texas, and the Permian Basin, with growth extending into 2030. KMI's debt-to-EBITDA ratio is 3.6x, near the low end of its target range.