Kinder Morgan (KMI) closed at $34.20 on October 16 and has returned 7.1% over the last six months, versus 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. The article describes the company as operating the largest natural gas network in the United States, with fee-based revenue that is steadier than the commodity it transports, and reports that revenue rose 10.80% and earnings 21.30% over the latest three months. Yet the shares trade at 20.17 times trailing earnings and 20.00 times expected next-year earnings, a near-identical multiple that the author reads as pricing in almost no growth, which is odd given rising electricity demand. The company carries debt equal to 98.62% of equity, and the 3.45% yield is ordinary for midstream, so the author argues the case depends on whether gas volumes rise with power demand.
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