Goldman Sachs reaffirmed its Buy recommendation on Kinder Morgan (NYSE: KMI) and kept a $32.00 price target after the company released fourth-quarter 2025 results and a 2026 outlook presentation. The $32 target equates to a modest approximately 5.8% upside relative to the stock’s current price of $30.24, with the shares trading close to a 52-week high of $30.57.
According to InvestingPro data, Kinder Morgan’s stock has risen about 10% year-to-date. Goldman Sachs cited results that outperformed both its own estimates and consensus forecasts as a basis for maintaining the positive stance.
In the quarter, the company delivered results that topped Goldman Sachs’ projections by 2% and exceeded consensus by 3%. The beat was largely driven by stronger-than-expected EBITDA performance in the Gas segment. Over the last twelve months, Kinder Morgan reported total EBITDA of $7.17 billion, supporting a market capitalization of $67.28 billion.
Management announced $900 million of new projects, primarily in the gas business. That announcement increased the company’s post-FID (Final Investment Decision) project backlog to $10 billion, while the pre-FID backlog expanded to more than $10 billion. In its 2026 outlook presentation, released on January 29, 2026, Kinder Morgan described a constructive macro environment and noted that about 60% of its project backlog serves power demand, while roughly 20% supports LNG demand.
Goldman Sachs identified Kinder Morgan as its top investment idea tied to natural gas demand growth, pointing to both thematic opportunity and valuation as supporting factors. The firm’s analysts expect substantial execution activity on the company’s pre-FID backlog and forecast annual growth capital expenditures in excess of $3 billion in the coming quarters.
Separate analyst actions followed the company’s results. Kinder Morgan reported adjusted earnings per share of $0.39 for the fourth quarter of 2025, beating the forecasted $0.36. Revenue came in at $4.51 billion versus an anticipated $4.32 billion.
In response to the stronger results, Freedom Capital Markets changed its rating on Kinder Morgan from Sell to Hold and set a $32.00 price target. Scotiabank raised its price target to $30.00, citing solid operational outcomes and margins that exceeded forecasts. TD Cowen increased its price target to $35.00, retained a Buy rating, and highlighted the natural gas segment’s positive EBITDA performance.
Collectively, these analyst moves reflect a more positive outlook from multiple firms after Kinder Morgan’s quarterly results and the details provided in its 2026 outlook. The company’s expanding project backlog, concentrated exposure to power and LNG demand, and outsized gas-segment EBITDA helped underpin that sentiment.
Context and implications
The combination of quarterly outperformance, a growing backlog of projects at both post-FID and pre-FID stages, and a management outlook emphasizing a constructive macro backdrop forms the basis for the reaffirmed Buy from Goldman Sachs and for revisions from other analysts. Market participants and sector watchers may view the developments as confirmation of Kinder Morgan’s operational momentum in the gas domain and as supportive of its near-term growth capital plans.