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 each company operates and fits within the energy sector. Educational content, not financial advice.
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 Projects Strong Growth Through 2026 Despite Recent Market Dip.
- 2025 Adjusted EPS projected at $1.27, up 10% year-over-year, with 2026 expectations rising to $1.37, an 8% increase, underscoring resilient earnings momentum.
- Committed projects worth $8.1 billion and strong cash flows—$5.9 billion CFFO forecasted for 2025—bolster growth outlook in natural gas transmission, handling 40% of U.S. production.
- Plans eighth straight dividend hike after 64% total shareholder return since 2016, reinforcing commitment to returning value while maintaining a solid BBB balance sheet.
Phillips 66 surges past market gains as analysts lift targets amid strategic asset sales.
- Piper Sandler raised its price target from $170 to $171 on December 5, maintaining a neutral stance, while Barclays hiked to $141, reflecting optimism on operational shifts[5][2].
- Company finalized €2.5 billion sale of 65% stake in German JET network to Stonepeak on December 1, streamlining focus on core refining amid high utilization rates[3][7].
- Declared $1.20 quarterly dividend payable December 1, underscoring commitment to shareholders despite LA refinery wind-down by year-end[3].
Kinder Morgan Projects Strong Growth Through 2026 Despite Recent Market Dip.
- 2025 Adjusted EPS projected at $1.27, up 10% year-over-year, with 2026 expectations rising to $1.37, an 8% increase, underscoring resilient earnings momentum.
- Committed projects worth $8.1 billion and strong cash flows—$5.9 billion CFFO forecasted for 2025—bolster growth outlook in natural gas transmission, handling 40% of U.S. production.
- Plans eighth straight dividend hike after 64% total shareholder return since 2016, reinforcing commitment to returning value while maintaining a solid BBB balance sheet.
Phillips 66 surges past market gains as analysts lift targets amid strategic asset sales.
- Piper Sandler raised its price target from $170 to $171 on December 5, maintaining a neutral stance, while Barclays hiked to $141, reflecting optimism on operational shifts[5][2].
- Company finalized €2.5 billion sale of 65% stake in German JET network to Stonepeak on December 1, streamlining focus on core refining amid high utilization rates[3][7].
- Declared $1.20 quarterly dividend payable December 1, underscoring commitment to shareholders despite LA refinery wind-down by year-end[3].
Which Baskets Do They Appear In?
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
Explore BasketWhich Baskets Do They Appear In?
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
Explore BasketInvestment 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.
Phillips 66
PSX
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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