Q1 23 EPS

$0.30

BEAT +3.45%

Est. $0.29

Q1 23 Revenue

$3.89B

MISS 18.46%

Est. $4.77B

Did KMI Beat Earnings? Q1 2023 Results

Kinder Morgan posted a steady but softening first quarter in 2023, reporting earnings per share of $0.30 on revenue of $3.89 billion, as rising interest costs and weaker commodity prices weighed on bottom-line momentum even as the core pipeline busin… Read more Kinder Morgan posted a steady but softening first quarter in 2023, reporting earnings per share of $0.30 on revenue of $3.89 billion, as rising interest costs and weaker commodity prices weighed on bottom-line momentum even as the core pipeline business held firm. GAAP net income attributable to KMI edged up to $679 million from $667 million a year earlier, though adjusted earnings slipped to $675 million from $732 million, and distributable cash flow declined to $1.37 billion with DCF per share falling 5% to $0.61. The Natural Gas Pipelines segment was the clear engine of resilience, with adjusted segment EBDA climbing to $1.43 billion from $1.30 billion, fueled by stronger contributions from the Texas Intrastate system and an 18% surge in gathering volumes across the Haynesville and Eagle Ford systems. Offsetting that strength, net interest expense rose sharply to $445 million from $333 million following January's $1.50 billion senior notes issuance. Management held full-year 2023 guidance steady, targeting $4.80 billion in DCF and $7.70 billion in adjusted EBITDA, confident the base business can absorb continued commodity price pressure.

Key Takeaways

  • Natural Gas Pipelines segment strength driven by higher contributions from Texas Intrastate, Midcontinent Express, and El Paso Natural Gas
  • Natural gas gathering volumes up 18% primarily from Haynesville and Eagle Ford systems
  • Natural gas transport volumes up 3% driven by EPNG pipeline return to service and coal plant retirement
  • Terminals benefited from rate escalations, strong export coal and petroleum coke volumes, and improving Jones Act tanker rates
  • Built-in tariff and contract escalators across Products Pipelines and Terminals
  • Liquids leased capacity improved to 92.8% from 90.6% year-over-year
  • Jet fuel volumes up 12% versus Q1 2022
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KMI YoY Financials

Q1 2023 vs Q1 2022, source: SEC Filings

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KMI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our extensive and interconnected network continued to generate strong earnings this quarter, particularly in our Natural Gas Pipelines and Terminals business segments.”

— Steve Kean, Q1 2023 Earnings Press Release