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Kinder Morgan's (KMI) Q4 Earnings In Line, Revenues Miss
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Kinder Morgan, Inc. (KMI - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 31 cents, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s 27 cents per share.
Total quarterly revenues of $4,579 million missed the Zacks Consensus Estimate of $5,527 million. The top line, however, surged from $4,425 million in the prior-year quarter.
The in-line quarterly earnings were primarily aided by higher gathering and transport volumes. Lower contributions from Product Pipelines offset the positives.
Segmental Analysis
Natural Gas Pipelines: In the December quarter of 2022, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,353 million from $1,215 million a year ago. Higher gathering and transport volumes primarily aided the segment.
Product Pipelines: The segment’s EBDA in the fourth quarter was $252 million, reflecting a decline from $281 million a year ago. Lower volumes of gasoline and diesel fuel affected the segment.
Gasoline transported volumes decreased 2% year over year in the December quarter but jet fuel volumes jumped 9.8%.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $244 million, flat with the year-ago period’s number. Sustained strength in handling rates primarily aided the unit.
CO2: The segment’s EBDA was recorded at $194 million, up from the year-ago quarter’s figure of $158 million. The outperformance was caused by increased realized prices of crude, NGL and CO2.
Operational Highlights
Expenses related to operations and maintenance totaled $695 million, up from $658 million a year ago. Total operating costs expenses and other were flat at $3,475 million.
Distributable Cash Flow (DCF)
Kinder Morgan’s fourth-quarter DCF was $1,217 million compared with $1,093 million a year ago.
Balance Sheet
As of Dec 31, 2022, Kinder Morgan reported $745 million in cash and cash equivalents. The company’s long-term debt amounted to $28,288 million at the quarter-end.
Outlook
For 2023, KMI projects a net income attributable to the midstream player of $2.5 billion. For this year, it expects a dividend of $1.13 per share, suggesting an increase of 2% from the prior-year reported figure.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2022 and 2023, respectively.
Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
PBF Energy is a leading North American independent refiner. It is highly inclined to reduce its debt load and has reinstated its regular quarterly dividend. Over the past seven days, PBF Energy has witnessed upward earnings estimate revisions for 2023.
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Kinder Morgan's (KMI) Q4 Earnings In Line, Revenues Miss
Kinder Morgan, Inc. (KMI - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 31 cents, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s 27 cents per share.
Total quarterly revenues of $4,579 million missed the Zacks Consensus Estimate of $5,527 million. The top line, however, surged from $4,425 million in the prior-year quarter.
The in-line quarterly earnings were primarily aided by higher gathering and transport volumes. Lower contributions from Product Pipelines offset the positives.
Segmental Analysis
Natural Gas Pipelines: In the December quarter of 2022, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,353 million from $1,215 million a year ago. Higher gathering and transport volumes primarily aided the segment.
Product Pipelines: The segment’s EBDA in the fourth quarter was $252 million, reflecting a decline from $281 million a year ago. Lower volumes of gasoline and diesel fuel affected the segment.
Gasoline transported volumes decreased 2% year over year in the December quarter but jet fuel volumes jumped 9.8%.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $244 million, flat with the year-ago period’s number. Sustained strength in handling rates primarily aided the unit.
CO2: The segment’s EBDA was recorded at $194 million, up from the year-ago quarter’s figure of $158 million. The outperformance was caused by increased realized prices of crude, NGL and CO2.
Operational Highlights
Expenses related to operations and maintenance totaled $695 million, up from $658 million a year ago. Total operating costs expenses and other were flat at $3,475 million.
Distributable Cash Flow (DCF)
Kinder Morgan’s fourth-quarter DCF was $1,217 million compared with $1,093 million a year ago.
Balance Sheet
As of Dec 31, 2022, Kinder Morgan reported $745 million in cash and cash equivalents. The company’s long-term debt amounted to $28,288 million at the quarter-end.
Outlook
For 2023, KMI projects a net income attributable to the midstream player of $2.5 billion. For this year, it expects a dividend of $1.13 per share, suggesting an increase of 2% from the prior-year reported figure.
Zacks Rank & Stocks to Consider
Kinder Morgan currently carries a Zacks Rank #5 (Strong Sell). Better-ranked players in the energy space include Halliburton Company (HAL - Free Report) , Eni SpA (E - Free Report) and PBF Energy Inc. (PBF - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2022 and 2023, respectively.
Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
PBF Energy is a leading North American independent refiner. It is highly inclined to reduce its debt load and has reinstated its regular quarterly dividend. Over the past seven days, PBF Energy has witnessed upward earnings estimate revisions for 2023.