Kinder MorganPhillips 66

Kinder Morgan vs Phillips 66

This page compares Kinder Morgan and Phillips 66, examining their business models, financial performance, and market context. It presents neutral, accessible information to help readers understand how...

Why It's Moving

Kinder Morgan

Kinder Morgan Raises 2026 Profit Outlook, Signaling Confidence in Growth Amid Energy Sector Stability

  • 2026 adjusted EPS guidance increased to $1.37, an 8% rise over third-quarter guidance, highlighting improved profit expectations.
  • 2025 net income attributable to Kinder Morgan projected at $2.8 billion, up 8% compared to 2024, indicating robust financial performance.
  • Adjusted EPS for 2025 budgeted at $1.27, a 10% increase from the previous year, underscoring ongoing earnings growth momentum.
Sentiment:
πŸƒBullish
Phillips 66

Phillips 66 Advances Portfolio Strategy with Major European Retail Divestment Boosting Shares

  • Sold 65% interest in German and Austrian retail fuel marketing business to a consortium, generating $1.6 billion in pre-tax proceeds on an estimated $2.8 billion enterprise value.
  • Retained 35% non-operational interest in the joint venture, ensuring continued participation in the European market.
  • Transaction supports Phillips 66’s long-term strategy to optimize its asset portfolio, reduce debt, and concentrate on more profitable U.S. Central Corridor and Gulf Coast operations, following over $5 billion in asset sales since 2022.
Sentiment:
πŸƒBullish

Which Baskets Do They Appear In?

Oil & Gas

Oil & Gas

Fuel up with investment opportunities in the energy markets. This collection features carefully selected stocks from industry giants and innovators, chosen by professional analysts for their potential in the growing $6.93 trillion global oil and gas market.

Published: May 15, 2025

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Investment Analysis

Pros

  • Strong growth in natural gas infrastructure with a 6% year-over-year increase in transport volumes supporting stable revenue streams.
  • Project backlog of $9.3 billion indicates robust future capital deployment and growth potential in energy infrastructure.
  • Dividend increased by 2% to $0.925 per share, reflecting consistent shareholder returns and cash flow generation.

Considerations

  • Q3 2025 EPS of $0.29 missed forecast by 3.33%, causing negative immediate market reaction despite revenue beat.
  • Stock price performance has been negative recently, with a 5.1% decline over the past month, indicating investor caution.
  • Revenue declined slightly by 1.53% in 2024, reflecting some pressure on top-line performance despite earnings growth.

Pros

  • Operating as a comprehensive energy production and distribution company with a global footprint, providing diversification benefits.
  • Partnership with Kinder Morgan on the Western Gateway Pipeline project expands capacity for refined products, enhancing growth opportunities.
  • Exposed to multiple energy segments, including refining and midstream services, which can provide resilience against sector cyclicality.

Considerations

  • Sensitive to commodity price volatility given its refining operations, which can pressure margins during periods of price fluctuations.
  • Exposed to regulatory risks associated with environmental policies and clean energy transition efforts impacting fossil fuel activities.
  • Execution risks in large infrastructure projects like the Western Gateway Pipeline could impact timelines and capital allocation efficiency.

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