On January 16, 2026, Phillips 66 and Kinder Morgan announced a second open season for the proposed Western Gateway Pipeline, adding new origin points and access to the Los Angeles market via reversals of existing Kinder Morgan lines in California.
This expansion of the Western Gateway concept strengthens Kinder Morgan’s role as a key connector between midcontinent refineries and high-demand markets in Arizona, Nevada, and California.
Next, we’ll examine how this expanded pipeline connectivity to Los Angeles shapes Kinder Morgan’s investment narrative for long-term infrastructure exposure.
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To own Kinder Morgan today, you have to believe in the durability of its fee-based energy infrastructure and the company’s discipline in turning that asset base into steady cash flows and dividends, even with only modest forecast growth. The new Western Gateway open season, with extended access into Los Angeles and added origin points, fits that story as a potential incremental volume driver, but it is unlikely to change the near term picture on its own. The bigger immediate catalysts still sit around how efficiently Kinder Morgan funds its project backlog, manages interest costs given that coverage is not especially comfortable, and maintains dividend growth despite only moderate revenue expansion. The Western Gateway news slightly tilts risks toward execution and regulatory delivery on a more complex multi-pipeline system.
However, investors should be aware that Kinder Morgan’s dividend is not well covered by earnings and cash flows. Kinder Morgan’s shares have been on the rise but are still potentially undervalued by 36%. Find out what it’s worth.
KMI 1-Year Stock Price Chart
Three Simply Wall St Community fair value views span roughly US$31 to over US$43 per share, reflecting very different expectations. Set those against Kinder Morgan’s rising project execution risk around Western Gateway and consider how outcomes could influence future cash generation.
Explore 3 other fair value estimates on Kinder Morgan – why the stock might be worth as much as 57% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include KMI.
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