Kinder Morgan Inc - Class P
Q3 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.00%.
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 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.
- 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
“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.”
Kinder Morgan CEO, on the earnings call
Forward Guidance & Outlook
For full year 2024, KMI budgeted net income of $2.7 billion ($1.22 per share, up 15% versus 2023), DCF of $5 billion ($2.26 per share), and Adjusted EBITDA of $8.16 billion, both up 8% versus 2023. However, management now expects Adjusted EBITDA to come in approximately 2% below budget and Adjusted EPS approximately 4% below budget due to lower than budgeted commodity prices and RNG facility start-up delays, partially offset by higher contributions from natural gas transmission and storage. Full-year Adjusted EBITDA is still expected to rise 5% and Adjusted EPS 9% versus 2023. The company expects to end 2024 with a Net Debt-to-Adjusted EBITDA ratio of 4.0x. Dividends of $1.15 per share are expected for 2024, a 2% increase from 2023. The company sees an opportunity set well in excess of 5 Bcf/d in new natural gas demand related to AI, data centers, coal conversions, cryptocurrency mining, and industrial re-shoring.
KMI YoY Financials
KMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.