Kinder Morgan (KMI) Advances Westward with Phillips 66 Pipeline Venture Is Its Infrastructure Edge Growing?

• On October 20, 2025, Phillips 66 and Kinder Morgan jointly announced the launch of a binding open season for the Western Gateway Pipeline, a new refined products system connecting Texas to Arizona, California, and Nevada through various pipeline reversals and new construction.
• This collaboration extends Kinder Morgan's network further west, aiming to address refined product supply needs in key markets and potentially boost the company's long-term infrastructure-driven income streams.
• We’ll examine how this major pipeline initiative positions Kinder Morgan to strengthen its infrastructure footprint and support consistent cash flow growth.

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Kinder Morgan Investment Narrative Recap

To be a Kinder Morgan shareholder, you have to believe in the continued reliance on its expansive pipeline assets, robust midstream contracts, and steady demand for natural gas and refined product transport. The Western Gateway Pipeline announcement with Phillips 66 fits with Kinder Morgan’s catalyst of network expansion for reliable, fee-based cash flow; however, it does not materially shift the primary short-term catalyst of growing U.S. LNG exports or the ongoing risk from high leverage and a maturing asset base.

Most relevant to this news event is Kinder Morgan’s recent 2% dividend increase for the third quarter of 2025, marking ongoing commitment to capital returns. This dividend action complements the company’s approach to providing income stability, even as infrastructure additions like Western Gateway remain years from fully impacting earnings.

In contrast, investors should be aware of the pressures that Kinder Morgan’s elevated leverage and aging infrastructure could create for future project flexibility and margin stability if…

Read the full narrative on Kinder Morgan (it's free!)

Kinder Morgan's narrative projects $20.2 billion revenue and $3.7 billion earnings by 2028. This requires 8.2% yearly revenue growth and a $1.0 billion earnings increase from $2.7 billion today.

Uncover how Kinder Morgan's forecasts yield a $31.06 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Individual fair value views from the Simply Wall St Community range from US$28.06 to US$38.74, based on 4 distinct analyses. Given current focus on pipeline expansion, competition and contract renewal risk remains a broader factor influencing Kinder Morgan’s long-term returns, inviting readers to compare many perspectives before making decisions.

Explore 4 other fair value estimates on Kinder Morgan - why the stock might be worth as much as 50% more than the current price!

Build Your Own Kinder Morgan Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kinder Morgan research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Kinder Morgan research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kinder Morgan's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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