Where Will Kinder Morgan Be in 5 Years?
Kinder Morgan (NYSE: KMI) is one of the largest U.S. midstream oil and gas companies, transporting and storing natural gas, oil, and other valuable products for customers across North America. Like many energy stocks, Kinder Morgan's future depends on where North America's energy mix is headed, the long-term relevance of oil and gas, and executing projects and maintaining a strong balance sheet.
Kinder Morgan's 2020 investor day presentation didn't shy away from tough questions, including how relevant natural gas can be if U.S. GDP is expected to outpace oil and gas growth in the coming decades. The U.S. shale revolution has led to a surge in domestic production, but the buyers lie overseas in developing nations.
Kinder Morgan expects the Asia-Pacific region to account for "~50% of the [natural gas] demand growth over the next two decades." This forecast is based on the transition from coal to natural gas, as well as natural gas pairing well with renewables for power generation. It's also based on a 1 billion-person rise in the world's population by 2030. Kinder Morgan expects more than 90% of that billion to come from developing countries that will need access to electricity.
Source Fool.com
