Phillips 66 and Kinder Morgan Launch Second Open Season for Western Gateway Pipeline
Phillips 66 (PSX) and Kinder Morgan (KMI) announced the launch of the second open season for the Western Gateway Pipeline, a newly proposed refined products pipeline system. As previously announced, the initial open season concluded in December with significant shipper interest, including shipper commitments. The second open season is for remaining pipeline capacity, and adds new access to the Los Angeles market via a joint tariff supported by the planned reversal of one of Kinder Morgan's existing SFPP lines between Watson and Colton, California. In addition to expanding the offered destinations, the second open season adds additional origin points to enable supply diversification and optionality for customers. The second open season will open January 16 and will close March 31. The Western Gateway Pipeline will consist of a new-build pipeline from Borger, Texas to Phoenix, Arizona, combined with Kinder Morgan's existing SFPP, L.P. pipeline from Colton, California to Phoenix, Arizona, which will be reversed to enable east to west product flows into California. The Western Gateway Pipeline will be fed from supplies connected to Borger, Texas and other origin points. The Gold Pipeline, operated by Phillips 66, which currently flows from Borger to St. Louis, will be reversed to enable refined products from midcontinent refineries to flow toward Borger and supply the Western Gateway Pipeline. The Western Gateway Pipeline will connect Midwest and other refinery supply to Phoenix and California, with connectivity to Las Vegas, Nevada via Kinder Morgan's CALNEV Pipeline and to Los Angeles via a reversed existing Kinder Morgan SFPP line between Watson and Colton, California.
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Kinder Morgan's Natural Gas and Dividend Growth Momentum Continues
KMI's Natural Gas Dividend Cycle: Kinder Morgan Inc. (KMI) continues to maintain a natural gas-to-dividend cycle, supported by long-term contracts with high-quality clients, yielding a reliable 4% annual dividend. The company has consistently increased its dividend over the past 80 years, indicating strong cash flow sustainability.
Strong Financial Performance: In Q4, KMI reported a record net revenue of $4.51 billion, a 13% year-over-year increase, driven by strong natural gas demand and the completion of new projects. The company also experienced significant growth in net income and earnings per share, with expectations for continued strength in the upcoming fiscal year.
Positive Market Outlook: Analysts have highlighted KMI's strong performance, including cash flow and project pipeline growth, leading to bullish trends for the stock. The consensus forecast suggests a modest increase in stock price, with potential for further gains as natural gas demand rises.
Future Growth Projections: KMI is expected to have a transitional year in 2026, with planned capital expenditures of $3.4 billion and the completion of several projects, which will enhance revenue and cash flow. The company is well-positioned to capitalize on increasing natural gas demand and maintain a healthy balance sheet.
KINDERMORGAN: ELBA LNG PLANT UNDERGOING SCHEDULED MAINTENANCE FOR SYSTEM UPGRADE, MMLS UNITS EXPECTED TO RESUME BY WEEKEND
Scheduled Maintenance: Kinder Morgan's Elba LNG plant is set to undergo scheduled maintenance for a system upgrade.
Backup Units: The maintenance is expected to ensure that the MMLs (Modular Liquefaction Units) should be backed up by the weekend.