Kinder Morgan (KMI) is likely to report a "strong start to the year" when it reports its fiscal Q1 results, UBS said in an earnings preview Thursday.

The analysts said they expect the energy infrastructure company to report Q1 earnings before interest, taxes, depreciation, and amortization of $2.18 billion, up slightly from their previous estimate of $2.17 billion and above the $2.14 billion consensus of analysts polled by FactSet.

UBS said it expects the $640 million acquisition of Outrigger in February, as well as stronger than expected Texas interstate volumes, better weather and commodity tailwinds to drive the company's EBITDA.

The investment firm said it expects the company to focus on updates to its fiscal 2025 guidance and data center related growth when it announces its quarterly results.

According to UBS, Kinder Morgan is "well positioned" for multi-year growth for a number of reasons, including natural gas demand.

UBS has a buy rating on the stock with a price target of $38.

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