Kinder Morgan: Reliable Income At A Lofty Price (NYSE:KMI)

Kinder Morgan, Inc. (NYSE:KMI) is seeing its share price approach $20 / share, which outside a brief spike in mid-2022, is the company’s highest share price since the COVID-19 price collapse. As we’ll see throughout this article, despite the company’s lofty valuation, it is still a reliable investment with strong cash flow generation potential.

Kinder Morgan Portfolio

Kinder Morgan has one of the largest portfolios of midstream assets in the industry, including the largest U.S. natural gas terminal.

Overall, the company has ~66k miles of natural gas pipelines, or ~40% of U.S. natural gas production. Additionally, the company has an interest in ~15% of U.S. working storage capacity, or more than 700 bcf. The company is also one of the largest CO2 transporters, with ~1.5 bcf/d of capacity, and the largest U.S. independent refined products’ transporter & terminal operator.

That…