Kinder Morgan vs TC Energy
This page compares Kinder Morgan, Inc. and TransCanada Corporation, examining their business models, financial performance, and market context in a neutral, accessible way. The comparison covers how each company approaches energy transport and storage, capital allocation, and competitive dynamics. Educational content, not financial advice.
This page compares Kinder Morgan, Inc. and TransCanada Corporation, examining their business models, financial performance, and market context in a neutral, accessible way. The comparison covers how e...
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.
TC Energy Rewards Shareholders with 25th Straight Dividend Hike Amid Mixed Earnings Signals
- Dividend raised to $0.85 quarterly (annualized $3.40, ~6.3% yield), but high 106% payout ratio sparks sustainability questions.
- Q4 EPS hit $0.56 as expected, yet revenue of $1.86B missed $2.63B forecasts, pressuring near-term sentiment.
- Unusually high put options volume surged 1,446% above average, signaling trader bets on potential downside despite resilient stock performance.
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.
TC Energy Rewards Shareholders with 25th Straight Dividend Hike Amid Mixed Earnings Signals
- Dividend raised to $0.85 quarterly (annualized $3.40, ~6.3% yield), but high 106% payout ratio sparks sustainability questions.
- Q4 EPS hit $0.56 as expected, yet revenue of $1.86B missed $2.63B forecasts, pressuring near-term sentiment.
- Unusually high put options volume surged 1,446% above average, signaling trader bets on potential downside despite resilient stock performance.
Which Baskets Do They Appear In?
Fueling Profits: Beneficiaries Of OPEC+ Production Policy
OPEC+ is expected to maintain its policy of gradually increasing oil production, aiming to stabilize global energy markets. This could lead to moderated fuel costs, creating a potential advantage for companies in sectors like transportation and manufacturing where fuel is a major expense.
Published: July 25, 2025
Explore BasketOPEC+ Opens The Taps: Midstream's Moment
OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.
Published: July 25, 2025
Explore BasketToll Road Businesses
These gatekeepers of modern commerce own indispensable infrastructure and collect fees on the flow of goods, energy, and data. Our analysts have selected companies with durable, recurring revenues from hard-to-replicate physical and digital networks.
Published: June 17, 2025
Explore BasketWhich Baskets Do They Appear In?
Fueling Profits: Beneficiaries Of OPEC+ Production Policy
OPEC+ is expected to maintain its policy of gradually increasing oil production, aiming to stabilize global energy markets. This could lead to moderated fuel costs, creating a potential advantage for companies in sectors like transportation and manufacturing where fuel is a major expense.
Published: July 25, 2025
Explore BasketOPEC+ Opens The Taps: Midstream's Moment
OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.
Published: July 25, 2025
Explore BasketToll Road Businesses
These gatekeepers of modern commerce own indispensable infrastructure and collect fees on the flow of goods, energy, and data. Our analysts have selected companies with durable, recurring revenues from hard-to-replicate physical and digital networks.
Published: June 17, 2025
Explore BasketInvestment Analysis
Pros
- Kinder Morgan operates a diverse portfolio of pipelines and terminals across North America, including natural gas, products pipelines, terminals, and CO2 segments.
- The company has a dividend yield above 4.5%, providing attractive income potential for investors seeking stable cash flow.
- Recent analyst price target upgrades and a potential 20% stock price rise over the next 12-24 months indicate positive market sentiment driven by growth in pipeline assets and cash flow.
Considerations
- Kinder Morgan’s current return on equity (ROE) of 8.91% is below its peer TC Energy at 15.36%, indicating relatively lower profitability efficiency.
- Recent quarterly results missed revenue and profit consensus estimates, reflecting some execution risks or market headwinds.
- Its midstream pipeline business is sensitive to commodity price volatility and regulatory risks that could impact cash flow stability.
TC Energy
TRP
Pros
- TC Energy has a stronger return on equity (15.36%) than Kinder Morgan, signalling better profitability performance.
- The company is well-positioned as a large midstream player with clearly defined and visible growth plans.
- TC Energy’s geographic diversification across Canada and the US supports resilience against regional regulatory or market challenges.
Considerations
- TC Energy is exposed to regulatory and environmental risks linked to pipeline projects and energy transitions in North America.
- The company’s growth and cash flows may face cyclicality from changes in energy demand and commodity price fluctuations.
- Potential execution risks exist in infrastructure expansion projects due to permitting delays or rising costs.
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