ET vs KMI: How Energy Transfer and Kinder Morgan Compare (2026)
Last updated July 2026
Short answer
ET and KMI are similarly sized, but ET trades noticeably cheaper on forward earnings (13.30x vs 20.83x): the market is paying up for KMI's profile and pricing ET more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
ET vs KMI: the tie-breaker metrics
Same yardstick, side by side (as of July 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ET | KMI | What it tells you |
|---|---|---|---|
| Market cap | $70.06B | $71.13B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 13.30 | 20.83 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 16.97 | 20.63 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.55 | 0.53 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 92% of range | 69% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.25 | 2.27 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: ET is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how ET and KMI affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ET and KMI share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ET and KMI exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Energy Transfer (ET) do?
Energy Transfer owns and operates one of the largest and most diversified energy-infrastructure portfolios in the United States, spanning roughly 140,000 miles of pipeline across 44 states with assets in all major production basins. Its segments include natural gas gathering, processing, and intrastate and interstate transportation and storage; crude oil transportation and terminalling; NGL transportation, fractionation, and export; and refined products. The business is largely fee-based: it earns money by moving and storing volumes for producers, refiners, utilities, and exporters under long-term contracts, which makes cash flow less directly tied to commodity prices than an exploration company, though volumes and spreads still matter. Recent growth is concentrated in the Permian Basin, NGL exports (which set company records in Q1 2026), and a wave of natural-gas supply agreements tied to data centers and power generation, including deals to deliver gas to Oracle data centers.
What does Kinder Morgan (KMI) do?
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America, operating over 80,000 miles of pipelines and a portfolio of storage and terminal facilities. Its four business segments are Natural Gas Pipelines (the dominant driver), Products Pipelines, Terminals, and CO2. The Natural Gas Pipelines segment transports roughly 40% of all U.S. natural gas consumption and moves approximately 8 billion cubic feet per day to LNG export facilities, with contracted volumes expected to grow to nearly 12 Bcf per day by end of 2028. The company earns the vast majority of its revenue through long-term, fee-based contracts rather than direct commodity exposure, which gives cash flows a utility-like stability.
ET vs KMI: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ET drivers: Fee-based midstream cash flows; High distribution and stated growth target.
- KMI drivers: LNG Export Tailwind; Power and Data-Center Demand.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Energy Transfer's volumes and some spreads remain exposed to commodity cycles, drilling activity, and energy demand, so a downturn in production or prices can pressure cash flow. For KMI, kMI carries approximately $32 billion in net debt, and a debt-to-equity ratio of roughly 1.06 is well above the midstream industry average, meaning that higher-for-longer interest rates or any refinancing at elevated costs could add hundreds of millions of dollars in annual interest expense and compress margins.
ET or KMI: which should you pick?
ET vs KMI: the full fundamentals
ET. Energy Transfer is most often evaluated on cash-flow and yield metrics rather than traditional earnings multiples, because as a midstream MLP its appeal is income from distributions backed by distributable cash flow. As of June 2026 the units yielded roughly 7%, supported by record NGL and Permian volumes and a stated 3% to 5% distribution-growth target. These are descriptive figures tied to the asOf date, not projections, and yields move with the unit price.
KMI. KMI's P/E of approximately 23 times is modestly above the broader energy sector average but below higher-growth midstream peers such as Williams Companies, which traded at roughly 34 times earnings as of mid-2025. The EV/EBITDA of approximately 13 times reflects the market's recognition of stable, contracted cash flows but also a balance sheet that carries roughly $32 billion in net debt at a Net Debt to Adjusted EBITDA ratio of 3.8 times. Investors in fee-based midstream companies typically weigh dividend yield and distributable cash flow coverage alongside traditional earnings multiples, since GAAP net income can understate actual cash generation at capital-intensive pipeline operators.
Headline figures (approximate, 2026-06): ET shows revenue (ttm) ~$89 billion, distributable cash flow (q1 2026, attributable to partners) ~$2.7 billion, distribution yield ~7% (quarterly distribution ~$0.338/unit), 2026 adjusted ebitda guidance ~$18.2-$18.6 billion; KMI shows revenue (q4 2025, quarterly) ~$4.51 billion, revenue (q1 2025, quarterly) ~$4.24 billion, adjusted ebitda (fy 2025) ~$8.3 billion, adjusted ebitda (fy 2026 budget) ~$8.6 billion.
The bottom line: ET vs KMI
ET and KMI are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ET and KMI exposure against your real portfolio. It is not an investment adviser.
Investing in Energy Transfer with AI
Connect the broker you already use and ask Walnut's AI how ET fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ET and KMI?
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Energy Transfer owns and operates one of the largest and most diversified energy-infrastructure portfolios in the United States, spanning roughly 140,000 miles of pipeline across 44 states with assets in all major production basins. Kinder Morgan, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ET or KMI the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ET or KMI?
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On forward P/E (as of July 2026), ET trades at 13.30x and KMI at 20.83x, so ET is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ET and KMI?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ET vs KMI?
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ET: Energy Transfer's volumes and some spreads remain exposed to commodity cycles, drilling activity, and energy demand, so a downturn in production or prices can pressure cash flow. The partnership carries substantial debt, and rising rates or a credit downgrade would raise financing costs. As a master limited partnership, ET issues a Schedule K-1, which adds tax complexity and can complicate ownership inside retirement accounts. A high distribution always raises questions about long-term sustainability if cash flow weakens, and large projects such as the suspended Lake Charles LNG facility carry execution and regulatory uncertainty. KMI: KMI carries approximately $32 billion in net debt, and a debt-to-equity ratio of roughly 1.06 is well above the midstream industry average, meaning that higher-for-longer interest rates or any refinancing at elevated costs could add hundreds of millions of dollars in annual interest expense and compress margins. The CO2 segment remains a structural headwind as production from enhanced oil recovery fields declines and lower commodity prices weigh on results. Regulatory risk is real: FERC permitting delays on key projects such as SSE4 and Mississippi Crossing could push out expected backlog contributions and disappoint investors counting on near-term growth. Finally, a faster-than-expected energy transition or policy changes that disadvantage natural gas infrastructure could impair the long-term value of KMI's asset base.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ET or KMI; figures are approximate and dated (as of July 2026). Verify current data before investing.