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Can Kinder Morgan (KMI) Stock Reach $40?

a provider of pipeline transportation of natural gas

KMI
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A.I.Advisor
published price charts
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A.I.Advisor
Sep 02, 2026

Can Kinder Morgan (KMI) Stock Reach $40?

Kinder Morgan, Inc. (KMI) is one of North America's largest energy infrastructure companies, operating roughly 83,000 miles of pipelines and more than 140 terminals that move natural gas, refined products, crude oil, and carbon dioxide. With shares recently trading near $32, a growing number of investors are asking whether the stock can climb to the $40 mark — a level that sits well above its recent range but below its all-time high of about $44.71 set back in 2015. Reaching $40 would represent roughly 25% upside from current levels, making it a meaningful but not implausible objective worth examining in detail.

Key Takeaways

  • The central question is whether Kinder Morgan can reach a $40 stock price target, roughly 25% above its recent trading range near $32.
  • The strongest bullish case rests on surging natural gas demand tied to power generation, data centers, and liquefied natural gas (LNG) exports.
  • Analyst consensus points to meaningful upside, with an average price target around $35 to $36 and high estimates ranging from $43 to $48.
  • The biggest obstacles include elevated debt, sensitivity to commodity prices, and the fact that the stock has already more than doubled from its 2020 lows.
  • Key technical markers are the 52-week high near $34.81 as the first resistance level, followed by the psychological $40 barrier and the 2015 record high near $44.71.

Why Investors Are Watching the $40 Level

The $40 mark carries both psychological and technical weight. As a round-number milestone, it tends to attract attention from traders and retail investors alike. It also sits just below Kinder Morgan's long-standing all-time high near $44.71, meaning a push toward $40 would put the stock within striking distance of reclaiming a peak it has not seen in more than a decade. For a stock that has traded in a 52-week range of roughly $25.60 to $34.81, reaching $40 would require a decisive breakout above the current range and a sustained move higher — not just a brief spike.

Current Market Position

Kinder Morgan has delivered strong momentum in recent years, with shares gaining more than 20% over the past year and roughly 150% over five years. The company generated about $17.96 billion in trailing-twelve-month revenue and net income near $3.47 billion, supported by a largely fee-based business model that provides relatively stable cash flows regardless of short-term energy price swings. The stock also offers a dividend yield near 3.7%, which adds a layer of total-return appeal for income-focused investors.

What Could Drive the Next Leg Higher

The central catalyst is natural gas demand. Kinder Morgan has emphasized that a substantial portion of its project backlog serves power-generation demand, including the electricity needs of data centers tied to artificial intelligence, while another meaningful share supports LNG export growth. Management has highlighted a constructive macro environment and a project backlog exceeding $10 billion of post-final-investment-decision work, with an additional pre-FID pipeline of more than $10 billion. Analysts have also flagged the possibility that annual growth capital expenditures could rise from $3 billion toward $3.5 billion, which would signal accelerating investment in future cash-flow-producing assets. If these demand themes materialize as expected, they could justify a re-rating of the shares toward and eventually beyond the $40 threshold.

Analyst Opinions and Price Targets

Wall Street remains broadly constructive. The consensus rating is a Buy, with an average 12-month price target clustered around $35 to $36. Individual estimates are more aggressive at the top end: UBS has cited a $43 target, while Wells Fargo has set a $48 objective — both implying that a move to $40 is within the range of what analysts consider achievable. Goldman Sachs has maintained a Buy rating and a $35 target, and several firms raised their targets through 2026 as natural gas demand outlooks improved. Still, the gap between the average target and $40 suggests the market would likely need the company to exceed current expectations, rather than simply meet them, to sustain a run to that level.

Technical Levels That Matter

From a technical analysis standpoint, the first significant resistance sits near the 52-week high around $34.81. A confirmed close above that zone would represent a breakout from the prevailing range and could open the door to the next major obstacle at the $40 psychological level. On the downside, the low $30s have acted as a support level in recent months, with the lower $25 to $26 area marking the bottom of the 52-week range. The broader trend structure remains constructive, with the stock making a series of higher lows over the past several years.

What Could Prevent the Move

Several risks could stall the climb. Kinder Morgan carries roughly $32 billion in total debt, making its cash flows and valuation sensitive to interest rates and refinancing conditions. Although the business is largely fee-based, its CO2 segment and portions of its portfolio retain exposure to commodity prices, which can pressure results during downturns. The shares also trade at a price-to-earnings ratio near 20, a level that leaves less room for error than the stock's historical valuation. Finally, any slowdown in data-center buildouts, a pullback in LNG demand, or an economic downturn could temper the very growth narrative that underpins the bullish case.

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Final Assessment

Can Kinder Morgan reach $40? The target appears realistic over a longer horizon, provided the natural gas demand story — particularly from power generation and LNG — continues to strengthen and the company converts its sizable project backlog into earnings growth. Analysts' highest price targets of $43 to $48 suggest Wall Street sees the level as attainable, but the consensus near $35 to $36 indicates the market is not yet pricing in a sustained run to $40. The stock would likely need to first clear its 52-week high near $34.81 and hold that breakout. The primary risks remain its debt load, commodity-price sensitivity, and reliance on an AI-driven demand narrative that could cool. Investors should monitor natural gas demand data, LNG export volumes, capital-expenditure guidance, and whether shares can hold above the low-$30s support zone as they assess the path to $40.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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KMI and Stocks

Correlation & Price change

A.I.dvisor indicates that over the last year, KMI has been closely correlated with WMB. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if KMI jumps, then WMB could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To KMI
1D Price
Change %
KMI100%
-0.43%
WMB - KMI
82%
Closely correlated
+0.24%
DTM - KMI
74%
Closely correlated
-0.79%
OKE - KMI
69%
Closely correlated
-0.33%
AM - KMI
66%
Loosely correlated
+0.27%
TRGP - KMI
62%
Loosely correlated
+0.82%
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Groups containing KMI

Correlation & Price change

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To KMI
1D Price
Change %
KMI100%
-0.43%
KMI
(5 stocks)
89%
Closely correlated
-0.15%
Can Kinder Morgan (KMI) Stock Reach $40?