What Happened to LNG Stocks and 10 Best LNG Stocks to Buy Now

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

Number of Hedge Fund Holders: 41

Kinder Morgan, Inc. (NYSE:KMI) is one of the best LNG stocks to buy now, as the company operates as an energy Infrastructure Company in North America. It manages significant natural gas pipelines, storage facilities, collection networks, and processing and purification plants.

Kinder Morgan, Inc. (NYSE:KMI) ‘s primary business is natural gas infrastructure, consistently producing stable free cash flow. 94% of its earnings come from fixed-price contracts, other revenue-based agreements, or financial hedges, enabling it to make $3.3 billion in cash flow without debt.

In recent years, acquisitions have played a significant role in its expansion. Kinder Morgan, Inc. (NYSE:KMI) completed two major deals with Stagecoach Gas Services, a company with a pipeline and storage network in the Northeast, for $1.22 billion. Additionally, it acquired Interrex Energy, a company that produces renewable natural gas, for $310 million. In 2022, it bought North American Natural Resources, a company specializing in renewable natural gas facilities, for $135 million.

Additionally, it operates the largest natural gas transmission network, moving 40% of LNG. Kinder Morgan, Inc. (NYSE:KMI) is a significant player in the LNG sector. The company operates the Elba Island Liquefaction facility, which has a total capacity of approximately 2.5 million tonnes per year of LNG for export. Additionally, Kinder Morgan acquired Kinetrex Energy, a leading supplier of LNG in the Midwest. These operations highlight Kinder Morgan’s substantial role in the LNG market.

In the second quarter, the company recorded strong operational and financial performance. It continued funding high-quality capital projects that generated $1.7 billion in cash flow and $1.1 billion in free cash flow. Net income attributable to shareholders totaled $575 million.

Kinder Morgan, Inc. (NYSE:KMI) uses its earnings to pay a high dividend, buy back its own shares, and grow its natural gas infrastructure by investing in new projects and acquiring other companies.

Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 41 hedge funds owned stakes in Kinder Morgan, Inc. (NYSE:KMI), down from 43 in the previous quarter. These stakes are collectively valued at more than $1.31 billion. Among these hedge funds, Castle Hook Partners was the company’s leading stakeholder in Q2.