Kinder Morgan (KMI) added $5.4 billion of new projects in the third quarter, lifting its capital project backlog to $14.4 billion, including $13.2 billion of natural gas expansions, its largest gas backlog in company history. Key additions include the 470-mile, 2.6 Bcf/d Southeast Connector Project, in which it expects to invest $3.1 billion, and the 434-mile, 2.8 Bcf/d Permian Link Project serving a large data center customer, with a $1.6 billion share of a $4.2 billion project. The company estimates the backlog will generate $2.5 billion of annual earnings once all phases come online, nearly 30% above the $8.6 billion it expects to earn this year, and extends its visibility into 2032. The article says the stock, which offers a 3.5% dividend yield, benefits from rising gas demand driven by power needs of AI-related data centers.
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