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What's in the Offing for Kinder Morgan's (KMI) Q3 Earnings?

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Kinder Morgan, Inc. (KMI - Free Report) is set to report third-quarter 2022 earnings on Oct 19, after the closing bell.

In the last reported quarter, its adjusted earnings per share of 27 cents were in line with the Zacks Consensus Estimate. Contributions from natural gas pipelines and Products Pipelines primarily aided Kinder Morgan’s second-quarter results.

KMI’s earnings beat the Zacks Consensus Estimate twice, met once and missed the same once in the trailing four quarters, with the average surprise being 3.5%. This is depicted in the graph below:

Kinder Morgan, Inc. Price and EPS Surprise

Kinder Morgan, Inc. Price and EPS Surprise

Kinder Morgan, Inc. price-eps-surprise | Kinder Morgan, Inc. Quote

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of 29 cents has witnessed no revisions over the past seven days. The estimated figure suggests a 31.8% improvement from the prior-year reported number.

The consensus estimate for third-quarter revenues of $4.5 billion indicates an 18.3% increase from the year-ago reported figure.

Factors to Consider

Being a leading North American midstream energy player, Kinder Morgan has the continent's largest natural gas transportation network. Its natural gas pipeline assets, spread across roughly 71,000 miles, are responsible for transporting approximately 40% of natural gas produced in the United States.

Being a transporter of 1.7 million barrels per day (MMB/D) of refined products through its pipeline network spreading across 6,800 miles, Kinder Morgan is the largest independent transporter of refined products in North America. It also has an operating interest in 141 terminals.

The Zacks Consensus Estimate for KMI’s adjusted segment earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA) from Natural Gas Pipelines, is pegged at $1,202 million, suggesting an improvement from $1,090 million in the prior-year reported quarter.

Thus, the company is likely to have generated stable fee-based revenues from its diverse and vast network of midstream assets in the quarter.

Earnings Whispers

Our proven model does not indicate an earnings beat for Kinder Morgan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: KMI’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kinder Morgan currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Schlumberger Limited (SLB - Free Report) has an Earnings ESP of +0.23% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Schlumberger is scheduled to release third-quarter results on Oct 21. The Zacks Consensus Estimate for SLB’s earnings is pegged at 55 cents per share, suggesting an increase of 52.8% from the prior-year reported figure.

Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3.

Diamondback is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.53 per share, suggesting a significant increase from the prior-year reported figure.

Halliburton Company (HAL - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #2.

Halliburton is scheduled to release third-quarter earnings on Oct 25. The Zacks Consensus Estimate for HAL’s earnings is pegged at 0.56 cents per share, suggesting a massive increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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