Kinder Morgan Q2 earnings due Wednesday. EPS seen up 9% to $0.25. The $32 billion debt load and moderate Alpha Score 61/100 keep the risk profile in focus.
Kinder Morgan reports second-quarter earnings after the close Wednesday. Analysts expect a 9% year-over-year increase in adjusted earnings per share to $0.25, according to consensus estimates compiled by AlphaScala.
Revenue is projected at $4.12 billion, up 3% from the year-ago quarter. The growth story hinges on natural gas transport volumes, where Kinder Morgan moves roughly 40% of U.S. gas through its 83,000-mile pipeline network. Higher power-sector demand and LNG export commitments have kept utilization rates elevated.
The company's debt load remains the central investor concern. Net debt stands at $32 billion, or roughly 4.5 times trailing EBITDA. That leverage ratio is higher than midstream peers Enterprise Products Partners and MPLX, both of which sit below 4 times. Kinder Morgan has said it aims to bring leverage under 4.5 times by year-end, partly through $1.5 billion in asset sales and free cash flow.
Kinder Morgan's Alpha Score of 61/100 flags it as a Moderate risk. The score reflects the debt overhang and commodity exposure, even as the dividend yield of 5.3% and the growth in gas volumes offer a counterweight.
Analyst ratings are mixed. Of the 18 analysts covering the stock, eight rate it a Buy, seven a Hold, and three a Sell, per AlphaScala data. The average price target of $22.50 implies roughly 10% upside from Monday's close of $20.42.
The stock has gained 8% year to date, lagging the S&P 500's 15% advance. The quarter's results will test whether Kinder Morgan can close that gap.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.