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Kinder Morgan sees growth tied to data center power demand

Kinder Morgan reported Q2 revenue growth of 10.8% and an adjusted EPS beat, and it is raising 2026 guidance while continuing dividend growth.

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Kinder Morgan is positioning itself for higher demand in natural gas infrastructure as electricity needs rise from AI data centers and grid electrification, with liquefied natural gas exports also in focus, according to MarketBeat Ratings. The outlet frames the shift as changing how investors value midstream energy companies that have historically traded as more of a steady income play.

MarketBeat Ratings said Kinder Morgan’s Q2 revenue rose 10.8% and adjusted EPS beat estimates. The company attributes the momentum in part to demand for natural gas as a bridge fuel that can deliver near term grid stability for power generation.

The outlet also cited an industry forecast that U.S. natural gas demand could exceed 160 billion cubic feet per day by 2035, which would be an increase of 46 billion cubic feet per day from 2025 levels. It said Kinder Morgan is evaluating projects tied to power generation demand of 10 billion cubic feet per day, compared with 3 billion cubic feet per day for LNG export demand.

MarketBeat Ratings pointed to operational signs of that demand pull, saying natural gas gathering volumes rose 26% year over year in the second quarter. It added that growth was especially strong in the Haynesville basin, where the KinderHawk system saw volumes rise 54%, reaching peak flows of about 2 billion cubic feet per day in June.

Latest closeNat gas $2.908 ▼0.6%

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