Q3 24 EPS

$0.25

MISS 7.41%

Est. $0.27

Q3 24 Revenue

$3.70B

MISS 6.94%

Est. $3.97B

vs S&P Since Q3 24

+17.0%

BEATING MARKET

KMI +42.9% vs S&P +25.9%

Market Reaction

Did KMI Beat Earnings? Q3 2024 Results

Kinder Morgan fell short of Wall Street expectations in the third quarter of 2024, posting adjusted EPS of $0.25 against a consensus estimate of $0.27, a miss of 7.41%, while revenue of $3.70 billion trailed the $3.97 billion forecast by 6.94% and de… Read more Kinder Morgan fell short of Wall Street expectations in the third quarter of 2024, posting adjusted EPS of $0.25 against a consensus estimate of $0.27, a miss of 7.41%, while revenue of $3.70 billion trailed the $3.97 billion forecast by 6.94% and declined 5.4% year over year. The primary culprit was lower commodity prices, which weighed on the Products Pipelines and CO2 segments and compressed top-line results even as the company's core Natural Gas Pipelines business delivered meaningful growth, with that segment's Adjusted EBITDA climbing to $1.28 billion from $1.20 billion a year earlier on stronger volumes and contributions from the STX Midstream acquisition. On a GAAP basis, net income attributable to Kinder Morgan rose to $625.00 million from $532.00 million, aided by favorable derivative fair value changes. Looking ahead, management trimmed its full-year outlook, now guiding Adjusted EBITDA roughly 2% below its original budget, though full-year Adjusted EBITDA and EPS are still expected to rise 5% and 9%, respectively, versus 2023, with the company pointing to surging natural gas demand from AI data centers and industrial re-shoring as longer-term tailwinds.

Key Takeaways

  • Higher contributions from Texas Intrastate system
  • Additional contributions from STX Midstream acquisition
  • Higher contributions from Tennessee Gas Pipeline expansion projects
  • Natural gas transport volumes up 2% YoY
  • Natural gas gathering volumes up 5% YoY driven by Haynesville and Eagle Ford systems
  • Terminals expansion projects placed in service and higher rates at New York Harbor hub
  • Fully contracted Jones Act tankers at higher rates
  • Increased petroleum coke and fertilizer volumes in bulk terminals
24/7 Wall St

KMI YoY Financials

Q3 2024 vs Q3 2023, source: SEC Filings

24/7 Wall St

KMI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“The company had a solid third quarter on increased financial contributions from our Natural Gas Pipelines and Terminals business segments, with Adjusted EBITDA up 2% versus the third quarter of 2023.”

— Kim Dang, Q3 2024 Earnings Press Release