Q2 23 EPS
$0.26
BEAT +8.33%
Est. $0.24
Q2 23 Revenue
$3.50B
MISS 23.13%
Est. $4.55B
Did KMI Beat Earnings? Q2 2023 Results
Kinder Morgan posted a steady but pressured second quarter, reporting earnings per share of $0.26 and revenue of $3.50 billion as lower commodity prices and higher interest expense weighed on year-over-year comparisons, even as results beat the compa… Read more Kinder Morgan posted a steady but pressured second quarter, reporting earnings per share of $0.26 and revenue of $3.50 billion as lower commodity prices and higher interest expense weighed on year-over-year comparisons, even as results beat the company's internal budget on both Adjusted EBITDA and distributable cash flow. GAAP net income attributable to KMI fell 8% to $586.00 million from $635.00 million a year ago, while revenue declined sharply from $5.15 billion, a drop driven largely by softer commodity prices flowing through cost of sales rather than any operational deterioration. The bright spot was the Natural Gas Pipelines segment, where Adjusted Segment EBDA climbed to $1.20 billion from $1.13 billion on a 5% rise in transport volumes and a 19% surge in gathering volumes. Looking ahead, KMI reaffirmed its full-year 2023 dividend guidance of $1.13 per share but acknowledged it now expects results to finish slightly below its $7.70 billion Adjusted EBITDA budget, entirely attributable to commodity prices tracking below its $85 per barrel crude and $5.50 per MMBtu natural gas assumptions.
Key Takeaways
- • Natural Gas Pipelines segment up on higher contributions from Midcontinent Express Pipeline, Texas Intrastate system, EPNG, Stagecoach and TGP
- • Natural gas transport volumes up 5% and gathering volumes up 19% year-over-year
- • Jones Act tanker business meaningfully higher on higher average charter rates with fleet fully contracted
- • Terminals bulk business benefited from rate escalations and higher coal and fertilizer volumes
- • Jet fuel volumes up 9% year-over-year
- • CO2 combined net oil production up 7% versus prior year
- • Lower commodity prices and higher interest expense offset operational gains
KMI YoY Financials
Q2 2023 vs Q2 2022, source: SEC Filings
KMI Revenue by Segment
With YoY comparisons, source: SEC Filings
“KMI once again saw the value of its existing natural gas transportation and storage assets that are able to respond to volatile market conditions caused by extreme weather events and an increasingly intermittent resource-based electric grid. Our 700 billion cubic feet (Bcf) of operated natural gas storage capacity is particularly useful in backstopping intermittent renewable electricity resources. Financial contributions from the Natural Gas Pipeline business segment were up relative to the second quarter of 2022 and ahead of budget. Our Terminals business segment also over performed relative to both the second quarter of 2022 and budget.”
— Steve Kean, Q2 2023 Earnings Press Release
KMI Earnings Trends
KMI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KMI EPS Trend
Earnings per share: estimate vs actual
KMI Revenue Trend
Quarterly revenue: estimate vs actual
KMI Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.39 | $0.48 | +22.11% | $4.83B | +6.19% |
| Q4 25 BEAT FY | $0.37 | $0.39 | +6.82% | $4.51B | +4.15% |
| FY Full Year | $1.28 | $1.30 | +1.44% | $16.94B | +0.45% |
| Q3 25 MISS | $0.30 | $0.29 | -2.85% | $4.15B | +4.67% |
| Q2 25 BEAT | $0.27 | $0.28 | +3.09% | $4.04B | +7.85% |
| Q1 25 MISS | $0.36 | $0.34 | -4.84% | $4.24B | +5.34% |
| Q4 24 MISS FY | $0.33 | $0.32 | -2.71% | $3.99B | -3.59% |
| FY Full Year | $1.18 | $1.15 | -2.16% | $15.10B | -2.46% |
| Q3 24 MISS | $0.27 | $0.25 | -7.41% | $3.70B | -6.94% |
| Q4 23 MISS FY | $0.30 | $0.27 | -10.00% | $4.04B | -8.41% |
| FY Full Year | — | $1.06 | — | $15.33B | — |
| Q3 23 MISS | $0.26 | $0.24 | -7.69% | $3.91B | -17.12% |
| Q2 23 BEAT | $0.24 | $0.26 | +8.33% | $3.50B | -23.13% |
| Q1 23 BEAT | $0.29 | $0.30 | +3.45% | $3.89B | -18.46% |
| Q4 22 BEAT FY | $0.30 | $0.31 | +3.33% | $4.58B | -6.79% |
| FY Full Year | — | $1.16 | — | $19.20B | — |