Kinder Morgan is positioned to gain from an expanding portfolio of pipeline projects set to launch in the next two years. The company, along with NextDecade, a budding liquefied natural gas (LNG) liquefaction firm, has attracted attention from insiders who are purchasing shares amidst rising demand for natural gas, which plays a pivotal role in global energy security and the transition to greener energy.
As operators of LNG infrastructure, Kinder Morgan and NextDecade are capitalizing on an influx of long-term contracts, which promise stable revenue growth and capital returns. Kinder Morgan’s recent insider trading activity highlights confidence in the company, with key figures such as Richard D. Kinder acquiring significant shares. This uptick in insider transactions follows an optimistic earnings report reflecting a thriving project pipeline exceeding $9.3 billion.
Institutional investors also show strong support, owning over 60% of Kinder Morgan, while market analysts project an 18% upside for the company. NextDecade, although a smaller player, is believed to be a potential acquisition target as it approaches a profitable phase with revenue generation expected by late 2027. Institutional backing for NextDecade stands at approximately 60%, though recent selling activities may contribute to a drop in share price, presenting a buying opportunity for investors at around $5.
Analysts currently rate NextDecade as a “Hold” with a potential upside of 65%, indicating a probable market shift as its projects come online.
Why this story matters:
- The energy sector is increasingly significant for global energy security and the green transition.
Key takeaway:
- Both Kinder Morgan and NextDecade are set to benefit from growing demand for LNG, with positive market sentiment and institutional backing.
Opposing viewpoint:
- While optimism exists, insider selling at NextDecade raises concerns about its near-term performance and market stability.
