11 Best Natural Gas Stocks To Buy Now

9. Kinder Morgan, Inc. (NYSE:KMI)

Number of Hedge Fund Holders: 42

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company operates the largest natural gas transmission network in the US with 83,000 miles of pipelines, 141 terminals, and 700 billion cubic feet of working natural gas storage capacity. KMI makes its money typically by charging fees for the use of the capacity of its pipelines, terminals, and other assets.

Kinder Morgan, Inc. (NYSE:KMI) reported a revenue of $3.99 billion for Q4 of 2024, down from consensus estimates by $148.6 million, as it struggled with lower crude and condensate volumes transported through its pipelines. However, the company’s financial position remained strong as it generated $5.6 billion in operating cash flow and decreased its debt by $112 million during the year. KMI announced a quarterly dividend of $0.2875 per share, and as its new assets get integrated, the company’s dividend growth rate could be much higher in the future.

In the past few months, Kinder Morgan, Inc. (NYSE:KMI) has secured enough commercial contracts with customers to approve about $5 billion in new large-scale natural gas pipeline projects. It was announced this week that Entergy Texas has reached a transportation agreement with KMI to secure a steady natural gas supply, supporting industrial, commercial, and residential growth in Southeast Texas. The landmark arrangement, which was developed in collaboration with Golden Pass LNG, is part of KMI’s $1.7 billion Trident Intrastate Pipeline project. Expected to be operational in early 2027, the pipeline is expected to carry approximately 1.5 billion cubic feet per day of natural gas, with further possible expansions, ensuring a reliable gas supply for decades to come.