Analyst Note| Stephen Ellis |
Kinder Morgan’s first-quarter results were strong, as tight oil and gas markets contributed to strength across multiple areas of its business. The results are on track to modestly exceed the firm's $7.2 billion 2022 EBITDA outlook compared with our already higher $7.3 billion forecast. The potential upside should be tempered by uncertainty about inflationary headwinds (fuel and steel costs), but we consider our estimate reasonable. We don’t plan to change our fair value estimate or narrow moat rating.