A month has gone by since the last earnings report for Kinder Morgan (KMI Quick QuoteKMI - Free Report) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Kinder Morgan due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Kinder Morgan Q4 Earnings Beat Estimates

Kinder Morgan reported fourth-quarter 2021 adjusted earnings per share of 27 cents, beating the Zacks Consensus Estimate by a penny. The bottom line suggests no movement from the prior-year reported number.

Total quarterly revenues of $4,425 million beat the Zacks Consensus Estimate of $3,387 million. The top line also increased from $3,115 million in the prior-year quarter.

The better-than-expected results were due to increased contributions from the Permian Highway Pipeline and a rebound in fuel demand. The positives were partially offset by a decline in CO2 sales and crude volumes.

Segment Analysis

Natural Gas Pipelines: For the December-end quarter of 2021, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,215 million from $1,189 million a year ago. An increase in contributions from Permian Highway Pipeline primarily aided the segment. Fayetteville Express Pipeline’s lower contributions partially offset the positives.

Products Pipelines: The segment’s EBDA for the fourth quarter was $281 million, reflecting a jump from $258 million a year ago. The continued recovery in demand for refined products has aided the business unit.

Gasoline transported volumes increased 6.8% year over year in the December-end quarter, while jet fuel volumes skyrocketed almost 48%.

Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $244 million, down from the year-ago period’s $258 million. A decline in liquids utilization was responsible for the underperformance.

CO2: The segment’s EBDA was recorded at $158 million, down from the year-ago quarter’s figure of $167 million. The segment was hurt by a decline in CO2 sales and crude volumes.

Operational Highlights

Expenses related to operations and maintenance totaled $658 million, up from $606 million a year ago. Total operating costs increased to $3,475 million for the fourth quarter from $2,135 million in the corresponding period of 2020.

DCF

The company’s fourth-quarter distributable cash flow (DCF) was $1,093 million compared with $1,250 million a year ago.

Balance Sheet

As of Dec 31, 2021, Kinder Morgan reported $1,140 million in cash and cash equivalents. The company’s long-term debt amounted to $29,772 million at the quarter-end, resulting in a debt to capitalization of 50.4%.

Guidance

For 2022, Kinder Morgan expects to generate a net income of $2.5 billion. The company anticipates DCF and adjusted EBITDA of $4.7 billion and $7.2 billion, respectively.

For the year, the midstream player announces a dividend payout of $1.11 per share, reflecting a year-over-year increase of 3%.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

Currently, Kinder Morgan has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Kinder Morgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.