Kinder Morgan reports mixed Q3 results, shares edge up

Published 16/10/2024, 21:12
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KMI
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HOUSTON - Kinder Morgan , Inc. (NYSE:KMI) reported mixed third-quarter results on Wednesday, with earnings per share missing analyst estimates but revenue beating expectations. The energy infrastructure company's shares edged up 1% in after-hours trading following the release.

Kinder Morgan posted adjusted earnings per share of $0.25 for the quarter, falling short of the $0.27 consensus estimate. However, revenue came in at $3.7 billion, surpassing analysts' expectations of $4.03 billion.

The company's net income attributable to KMI rose to $625 million, up from $532 million in the same quarter last year. Adjusted EBITDA increased 2% YoY to $1.88 billion.

"We enjoyed another solid quarter of strong operational and financial performance," said Executive Chairman Richard D. Kinder. He highlighted the company's ability to internally fund high-quality capital projects while generating $1.2 billion in cash flow from operations and $600 million in free cash flow after capital expenditures.

CEO Kim Dang noted increased financial contributions from the Natural Gas Pipelines and Terminals business segments. She also emphasized the company's strong balance sheet, with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times at quarter-end.

Kinder Morgan made progress on several projects during the quarter, including finalizing a $455 million expansion of the Gulf Coast Express Pipeline. The company also reported ongoing discussions about opportunities related to new natural gas demand for electric generation, artificial intelligence operations, and data centers.

For the full year 2024, Kinder Morgan now expects to be approximately 2% below its budgeted Adjusted EBITDA and 4% below its Adjusted EPS targets. However, the company still anticipates year-over-year growth of 5% in Adjusted EBITDA and 9% in Adjusted EPS compared to 2023.

The board of directors approved a quarterly cash dividend of $0.2875 per share, representing a 2% increase from the third quarter of 2023.

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