Kinder Morgan becomes Conviction Buy at Goldman

|About: Kinder Morgan, Inc. (KMI)|By:, SA News Editor

Kinder Morgan (KMI) rose today while most energy peers fell, thanks to Goldman Sachs' addition to its Conviction Buy list.

KMI's status as the largest gas pipeline operator in North America means KMI should win multiple growth projects in coming years, Goldman says; KMI has identified $15B of potential natural gas growth projects, of which only $2.7B is in its current backlog as of its late January analyst day, so the firm sees large potential upside to its organic growth capital spending in gas alone.

KMI also provides well diversified, highly stable, fee-based cash flows and solid 8%-10% annual dividend growth, Goldman says, believing shares are attractively valued on an absolute basis.