WES vs KMI Stock Comparison: AI Score, Valuation, Performance and Upside
Western Midstream and Kinder Morgan are both midstream energy infrastructure companies with natural gas focus, but with different structures. WES is an MLP with Occidental Petroleum sponsor integration; KMI is a C-corporation with the largest US natural gas pipeline network. KMI's scale, C-corp IRA accessibility, and AI power demand tailwind make it the more broadly accessible midstream investment; WES offers higher yield with OXY sponsor concentration.
WES vs KMI is the Occidental Petroleum-sponsored gathering and processing MLP with DJ Basin and Permian volume exposure and high distribution yield (Western Midstream) versus the largest US natural gas transmission pipeline C-corp with 79,000+ miles benefiting from AI data center power demand creating new natural gas infrastructure investment (Kinder Morgan) — sponsor-integrated gathering yield vs natural gas transmission scale and AI power tailwind.
WES holds the edge across 3 of 5 key metrics in this comparison. WES leads on both 1-year return (+34.36%) and forward P/E quality (12.20x vs 20.52x for KMI), a relatively favorable combination of momentum and valuation. WES leads on both revenue growth (30.00%) and operating margin (41.67%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for KMI (+13.46%) than for WES (+5.21%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- prefer high-yield gathering and processing MLP with Occidental Petroleum sponsor integration providing captive DJ Basin and Permian volume foundation
- value WES's DJ Basin scale as one of the largest gathering and processing systems in Colorado's Weld County production area
- want midstream income from a smaller, focused MLP concentrated in Occidental's key production areas with high distribution coverage
- are comfortable with OXY sponsor concentration risk, Colorado DJ Basin regulatory tightening risk, and MLP K-1 tax form complexity
- prefer the largest US natural gas pipeline C-corp with 79,000+ pipeline miles — IRA-accessible 1099 tax treatment without K-1 complexity
- value Kinder Morgan's AI data center and power generation natural gas demand tailwind as the country's critical gas transmission infrastructure operator
- want midstream income exposure to natural gas transmission at scale with C-corp structure enabling broader investor access and retirement account suitability
- are comfortable with natural gas volume throughput cyclicality, 2015 dividend cut historical credibility question, and long-dated natural gas transition risk
| Metric | WES | KMI |
|---|---|---|
| AI scorei | 40.6 | 42.4 |
| AI ranki | #1121 | #940 |
| Latest closei | $47.16 | $31.31 |
| 1M returni | -5.30% | -4.75% |
| 6M returni | +18.93% | -6.37% |
| 1Y returni | +34.36% | +13.57% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | WES | KMI |
|---|---|---|
| 1Y ago | $14.72K (+47.2%) started 2025-09-17 | $11.32K (+13.2%) started 2025-09-18 |
| 5Y ago | $60.45K (+504.5%) started 2021-09-17 | $31.81K (+218.1%) started 2021-09-20 |
| 10Y ago | $95.57K (+855.7%) started 2016-09-19 | $40.51K (+305.1%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | WES | KMI |
|---|---|---|
| Market capi | $19.49B | $70.28B |
| Trailing P/Ei | 14.92 | 20.36 |
| Forward P/Ei | 12.20 | 20.52 |
| Price/Salesi | 4.50 | N/A |
| EV/Revenuei | 6.62 | 5.78 |
| Analyst targeti | $49.62 | $35.81 |
| Target upsidei | +5.21% | +13.46% |
| Metric | WES | KMI |
|---|---|---|
| Revenue growthi | 30.00% | 10.80% |
| Earnings growthi | 13.80% | 21.20% |
| EPS growthi | +13.80% | +21.20% |
| FCF margini | +20.01% | +5.99% |
| Operating margini | 41.67% | 30.06% |
| Profit margini | 29.00% | 19.30% |
| ROIC proxyi | 34.11% | 10.99% |
| Return on equityi | 34.11% | 10.99% |
| Dividend yieldi | 7.89% | 3.74% |
| Payout ratioi | 115.82% | 75.81% |
| Dividend growth streaki | 4 yrs | No increase yet |
| Betai | 0.66 | 0.55 |
| Debt/equityi | 207.38 | 98.62 |
| Current ratioi | 0.91 | 0.46 |
| Quick ratioi | 0.87 | 0.29 |
Over the past year, WES and KMI have moved moderately in the same direction (correlation of 0.42), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | WES | KMI |
|---|---|---|---|
| 1Y | Growthi | +34.36% | +13.16% |
| CAGRi | +34.39% | +13.17% | |
| Volatilityi | 20.74% | 20.83% | |
| Sharpe ratioi | 1.32 | 0.48 | |
| Sortino ratioi | 1.90 | 0.68 | |
| Max drawdowni | 11.03% | 10.43% | |
| Current drawdowni | 5.30% | 8.74% | |
| Avg drawdowni | 3.29% | 4.66% | |
| Ulcer Indexi | 4.25% | 5.55% | |
| Max daily dropi | 5.49% | 4.75% | |
| Max wkly dropi | 6.65% | 8.70% | |
| 5Y | Growthi | +259.22% | +148.95% |
| CAGRi | +29.15% | +20.03% | |
| Volatilityi | 28.01% | 22.45% | |
| Sharpe ratioi | 0.90 | 0.73 | |
| Sortino ratioi | 1.34 | 1.02 | |
| Max drawdowni | 23.54% | 20.31% | |
| Current drawdowni | 5.30% | 8.74% | |
| Avg drawdowni | 4.95% | 6.83% | |
| Ulcer Indexi | 6.32% | 8.28% | |
| Max daily dropi | 7.96% | 9.28% | |
| Max wkly dropi | 16.85% | 15.66% | |
| 10Y | Growthi | +178.17% | +126.58% |
| CAGRi | +10.78% | +8.53% | |
| Volatilityi | 46.50% | 27.42% | |
| Sharpe ratioi | 0.37 | 0.27 | |
| Sortino ratioi | 0.54 | 0.38 | |
| Max drawdowni | 92.01% | 55.13% | |
| Current drawdowni | 5.30% | 8.74% | |
| Avg drawdowni | 21.43% | 12.33% | |
| Ulcer Indexi | 30.55% | 15.89% | |
| Max daily dropi | 54.79% | 21.04% | |
| Max wkly dropi | 63.53% | 35.61% |
| Category | WES | KMI |
|---|---|---|
| Company | Western Midstream Partners, LP | Kinder Morgan, Inc. |
| Sector | Energy | Energy |
| Industry | Oil & Gas Midstream | Oil & Gas Midstream |
| Core business | Western Midstream Partners is an MLP focusing on gathering, processing, treating, and transporting natural gas, crude oil, and NGLs primarily in the DJ Basin (Colorado), Permian Basin (Texas/New Mexico), and other US production areas. WES's sponsor is Occidental Petroleum (OXY) — providing integration with Occidental's upstream production volumes. WES's DJ Basin assets are particularly large-scale gathering and processing systems serving Weld County Colorado's prolific natural gas and oil production. | Kinder Morgan is the largest natural gas transmission pipeline company in North America, operating 79,000+ miles of natural gas pipelines, terminals, and CO2 transport assets. KMI is organized as a C-corporation (not an MLP), making it more accessible for IRAs and avoiding K-1 tax forms. KMI's natural gas pipeline network provides takeaway capacity for Permian Basin, Haynesville, and other major US natural gas basins. KMI's LNG export terminal access and growing AI data center power demand are creating new natural gas infrastructure investment opportunities. |
| Investor focus | Investors track volume throughput in DJ Basin and Permian, distribution per unit and coverage, and Occidental Petroleum sponsor production guidance. | Investors track natural gas transport volumes, new project backlog related to data center power demand, dividend growth, and leverage ratio. |
- Occidental Petroleum sponsor integration: WES processes and transports Occidental's upstream production from DJ Basin and Permian operations — captive volume foundation
- DJ Basin asset scale: WES's gathering and processing infrastructure in Weld County Colorado is among the largest in the DJ Basin, creating competitive processing positioning
- High yield: WES distributes substantial quarterly distributions well-covered by distributable cash flow from gathering and processing fees
- Largest US natural gas pipeline network creates irreplaceable infrastructure — KMI's gas transmission infrastructure is essential for moving natural gas from production areas to power plants, industrial facilities, and LNG export terminals
- C-corp structure avoids K-1 — KMI's corporation tax structure allows IRA ownership and generates 1099 forms, making it more accessible than MLP peers
- AI data center and power demand tailwind: KMI's gas pipelines supply natural gas power plants serving AI data center load — infrastructure critical for new gas power generation investments
- Occidental Petroleum concentration risk: WES's revenue is heavily dependent on OXY's production volumes — OXY capital allocation changes directly affect WES throughput
- DJ Basin environmental and regulatory risk: Colorado's natural gas and oil production regulations have tightened, creating uncertainty for DJ Basin production growth volumes WES processes
- MLP K-1 tax form complexity limits IRA suitability
- Natural gas volume throughput is cyclical — warm winters reduce heating demand, and gas price collapses can affect upstream production volumes reducing pipeline flows
- KMI's historical leverage and dividend cut in 2015 raised long-term investor credibility questions that have largely been repaired but not forgotten
- Energy transition: natural gas pipelines face long-dated but real transition risk as renewable energy and battery storage reduce gas-fired power plant demand over decades
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