- Thesis: AI data-center load growth and LNG exports drive gas transport demand.
- Melius analyst James West initiated coverage on midstream operators Kinder Morgan and Williams Cos. with Buy ratings, citing AI data-center power demand and LNG export growth as structural demand drivers. He set a $38 price target on Kinder Morgan (16% upside) and an $84 target on Williams (14% upside). Energy Transfer and Enterprise Products Partners were rated Hold. West argues that hyperscalers' need for reliable power makes natural-gas-fired generation the only option in many areas, boosting gas-transport midstream companies. He also notes that U.S. LNG export growth alone could account for more incremental gas demand than the rest of the domestic market combined. Kinder Morgan is described as most directly exposed to both data-center load growth and LNG feed-gas exports, while Williams is the only name in the group that owns and sells power directly via a Blackstone joint venture.