Kinder Morgan, Inc. Reports Third Quarter 2024 Financial Results
Kinder Morgan, Inc. (NYSE: KMI) has reported its financial results for the third quarter of 2024, demonstrating solid earnings performance amidst a dynamic energy landscape.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus |
|---|---|---|---|---|
| Earnings per Share (EPS) | $0.28 | Not provided | +17% | $0.27 |
| Adjusted EPS | $0.25 | Not provided | Flat | Not applicable |
| Net Income (attributable to KMI) | $625 million | $532 million | +17% | Not applicable |
| Adjusted EBITDA | $1,880 million | $1,835 million | +2% | Not applicable |
Kinder Morgan exceeded consensus EPS estimates, reporting $0.28 against the expected $0.27. Adjusted EPS remained consistent year-over-year. Adjusted EBITDA saw a modest year-over-year increase of 2%.
Revenue Performance Across Major Segments
| Segment | Performance Highlights |
|---|---|
| Natural Gas Pipelines | Improved financial performance due to the STX Midstream acquisition and expansion projects. Natural gas transport volume increased by 2% YoY. |
| Products Pipelines | Contributions decreased due to lower commodity prices but showed slight increase in refined products volumes. |
| Terminals | Earnings rose due to placed expansion projects and higher utilization and rates. |
| CO2 | Segment earnings dropped due to asset divestitures and rising costs, but were partially offset by gains in Energy Transition Ventures. |
The Natural Gas Pipelines segment capitalized on operational improvements and strategic acquisitions, while the Terminals segment benefitted from recent infrastructure enhancements. Despite lower earnings in the CO2 segment, the comprehensive diversification strategy helped maintain steady overall performance.
Key Developments and Operational Highlights
- The board approved a cash dividend of $0.2875 per share for the third quarter, marking a 2% increase over the same quarter in 2023.
- Final Investment Decision reached for the Gulf Coast Express Pipeline Expansion, projected to increase natural gas deliveries significantly by 2026.
- Progress on several pipeline and terminal expansion projects, including the Tejas Pipeline and Geismar River Terminal, is proceeding on schedule.
Comments from Executives
Richard D. Kinder, Executive Chairman, emphasized the essential role of energy infrastructure amid geopolitical tensions, underscoring the company’s strategic direction in securing energy independence for its stakeholders. CEO Kim Dang highlighted the corporation’s sustained financial performance and foresight in capital project financing, which positions KMI to meet increasing global natural gas demand.
Dividends
Kinder Morgan has announced a quarterly dividend of $0.2875 per share, which translates to an annualized dividend of $1.15, representing a 2% increase from the previous year.
Forward Guidance
For 2024, the company anticipates net income attributable to KMI of $2.7 billion, with increased expectations for dividends and distributable cash flow.
Stock Price Movement
Following the earnings release, Kinder Morgan’s stock experienced a 0.69% increase, reflecting investor confidence in the company's strategic direction and financial resilience.
Kinder Morgan continues to project robust growth through strategic investments and capital management, remaining well-positioned to capitalize on future industry dynamics.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
