A month has gone by since the last earnings report for Kinder Morgan (KMI Quick QuoteKMI - Free Report) . Shares have lost about 3.9% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.

Kinder Morgan Q1 Earnings Beat Estimates

Kinder Morgan reported first-quarter 2022 adjusted earnings per share of 32 cents, beating the Zacks Consensus Estimate of 27 cents per share. However, the bottom line declined from the year-ago quarter’s 60 cents per share.

Total quarterly revenues of $4,293 million beat the Zacks Consensus Estimate of $3,879 million. The top line declined from $5,211 million in the prior-year quarter.

The better-than-expected results can be attributed to higher refinery utilization rates and a rebound in fuel demand. The positives were partially offset by lower contributions from the Natural Gas Pipelines segment and a decline in crude volumes.

Dividend Hike

The company’s board of directors approved a cash dividend of 27.75 cents per share for the first quarter of 2022. This suggests a 2.8% increase from the prior dividend of 27 cents per share. The amount is payable on May 16, 2022, to stockholders of record as of the close of business on May 2, 2022.

Segmental Analysis

Natural Gas Pipelines: For the March-end quarter of 2022, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), declined to $1,297 million from $2,094 million a year ago. Lower contributions from the El Paso Natural Gas and Colorado Interstate Pipeline hurt the segment.

Products Pipelines: The segment’s EBDA for the first quarter was $299 million, reflecting a jump from $263 million a year ago. The continued recovery in demand for refined products aided the business unit.

Gasoline transported volumes increased 5% year over year in the March-end quarter, while jet fuel volumes skyrocketed almost 38%.

Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $238 million, up from the year-ago period’s $227 million. Higher refinery utilization rates and continued demand recovery primarily aided the segment.

CO2: The segment’s EBDA was recorded at $208 million, down from the year-ago quarter’s figure of $291 million. The underperformance was caused by a decline in crude volumes due to Winter Storm Uri.

Operational Highlights

Expenses related to operations and maintenance totaled $585 million, up from $514 million a year ago. However, total operating costs declined to $3,269 million in the first quarter from $3,325 million in the corresponding period of 2021.

Distributable Cash Flow

Kinder Morgan’s first-quarter distributable cash flow (DCF) was $1,455 million compared with $2,329 million a year ago.

Balance Sheet

As of Mar 31, 2022, Kinder Morgan reported $84 million in cash and cash equivalents. The company’s long-term debt amounted to $28,175 million at the quarter-end, resulting in a debt to capitalization of 49.8%.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Kinder Morgan has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 #2 (Buy). We expect an above average return from the stock in the next few months.