12 Best Infrastructure Stocks to Buy According to Hedge Funds

4. Kinder Morgan Inc. (NYSE:KMI)

Number of Hedge Fund Holders: 42

Kinder Morgan Inc. (NYSE:KMI) is an energy infrastructure company that primarily operates in North America. It has four segments, Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. It owns and operates a network of pipelines (~82,000 miles) and terminals (139). It transports and stores natural gas, refined petroleum products, crude oil, and other commodities. It also produces, transports, and markets CO2 for enhanced oil recovery.

The company is heavily invested in infrastructure growth, particularly in natural gas. It has approved four major pipeline projects (GCX expansion, SS4 expansion, Mississippi Crossing, and Trident) totaling over $5 billion in investment and adding over 5 billion cubic feet/day of transport capacity. Long-term contracts back these projects. The Outrigger acquisition further expands its Bakken presence. The Bakken is a large shale oil and gas formation in North Dakota, Montana, and Saskatchewan (Canada).

In 2024, Kinder Morgan Inc. (NYSE:KMI) secured $6.3 billion in new projects, boosting its backlog from $3 billion to $8.1 billion. This projected growth is expected to fuel future EBITDA and EPS increases. It also acquired a Bakken gathering and processing system for $640 million. The company sees natural gas growth potential and projects a 28 billion cubic feet/day increase by 2030.

In the last days of January, the company’s stock price dropped 9.25%, continuing a multi-session decline. A CFRA analyst noted the market’s overreaction to DeepSeek AI’s emergence and stated that it won’t impact its earnings in 2025 or 2026 due to the emerging stage of AI data center construction and the continued demand for natural gas in manufacturing.