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Kinder Morgan (KMI) Beats Q1 Earnings Estimates, Hikes Dividend
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Kinder Morgan, Inc. (KMI - Free Report) reported first-quarter 2023 adjusted earnings per share of 30 cents, beating the Zacks Consensus Estimate by a penny. The bottom line, however, decreased from the year-ago quarter’s 32 cents per share.
Total quarterly revenues of $3,888 million missed the Zacks Consensus Estimate of $5,251 million. The top line fell from $4,293 million in the prior-year quarter.
The better-than-expected quarterly earnings were primarily aided by higher gathering and transport volumes. Lower contributions from Product Pipelines offset the positives.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Kinder Morgan declares a dividend of 28.25 cents per share for the first quarter, reflecting an increase from 27.75 cents in the prior quarter. The increased dividend is likely to be paid on May 15 to stockholders of record as of the close of business on May 1.
Segmental Analysis
Natural Gas Pipelines: In the March quarter of 2023, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,430 million from $1,297 million a year ago. Higher gathering and transport volumes primarily aided the segment.
Product Pipelines: The segment’s EBDA in the first quarter was $251 million, reflecting a decline from $299 million a year ago. Lower volumes of diesel fuel affected the segment.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $254 million, higher than the year-ago period’s number of $238 million. Increased steel volumes and rate escalations aided the unit.
CO2: The segment’s EBDA was recorded at $172 million, down from the year-ago quarter’s figure of $192 million. The underperformance was caused by a decline in realized natural gas liquids (NGL) and CO2 prices.
Operational Highlights
Expenses related to operations and maintenance totaled $639 million, up from $585 million a year ago. Total operating costs expenses and other were down to $2,694 million from $3,269 million.
Distributable Cash Flow (DCF)
Kinder Morgan’s first-quarter DCF was $1,374 million compared with $1,455 million a year ago.
Balance Sheet
As of Mar 31, 2023, Kinder Morgan reported $416 million in cash and cash equivalents. The company’s long-term debt amounted to $29,139 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
Currently, Kinder Morgan carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Marathon Petroleum Corporation (MPC - Free Report) , Sunoco LP (SUN - Free Report) and Valero Energy Corporation (VLO - Free Report) . While Marathon Petroleum and Sunoco sport a Zacks Rank #1 (Strong Buy), Valero carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is a well-known name since it operates the largest refining system in the nation. In the past seven days, Marathon Petroleum has witnessed upward earnings estimate revisions for 2023.
Sunoco has a stable business model while distributing motor fuel to approximately 10,000 convenience stores. For this year, SUN has witnessed upward earnings estimate revisions in the past 60 days.
Valero Energy is well poised to gain from constraint capacity in global refining activities and favorable demand for refined products. This, in turn, will possibly drive utilization in refining capacity and boost cashflows.
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Kinder Morgan (KMI) Beats Q1 Earnings Estimates, Hikes Dividend
Kinder Morgan, Inc. (KMI - Free Report) reported first-quarter 2023 adjusted earnings per share of 30 cents, beating the Zacks Consensus Estimate by a penny. The bottom line, however, decreased from the year-ago quarter’s 32 cents per share.
Total quarterly revenues of $3,888 million missed the Zacks Consensus Estimate of $5,251 million. The top line fell from $4,293 million in the prior-year quarter.
The better-than-expected quarterly earnings were primarily aided by higher gathering and transport volumes. Lower contributions from Product Pipelines offset the positives.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Kinder Morgan, Inc. price-consensus-eps-surprise-chart | Kinder Morgan, Inc. Quote
Dividend Hike
Kinder Morgan declares a dividend of 28.25 cents per share for the first quarter, reflecting an increase from 27.75 cents in the prior quarter. The increased dividend is likely to be paid on May 15 to stockholders of record as of the close of business on May 1.
Segmental Analysis
Natural Gas Pipelines: In the March quarter of 2023, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,430 million from $1,297 million a year ago. Higher gathering and transport volumes primarily aided the segment.
Product Pipelines: The segment’s EBDA in the first quarter was $251 million, reflecting a decline from $299 million a year ago. Lower volumes of diesel fuel affected the segment.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $254 million, higher than the year-ago period’s number of $238 million. Increased steel volumes and rate escalations aided the unit.
CO2: The segment’s EBDA was recorded at $172 million, down from the year-ago quarter’s figure of $192 million. The underperformance was caused by a decline in realized natural gas liquids (NGL) and CO2 prices.
Operational Highlights
Expenses related to operations and maintenance totaled $639 million, up from $585 million a year ago. Total operating costs expenses and other were down to $2,694 million from $3,269 million.
Distributable Cash Flow (DCF)
Kinder Morgan’s first-quarter DCF was $1,374 million compared with $1,455 million a year ago.
Balance Sheet
As of Mar 31, 2023, Kinder Morgan reported $416 million in cash and cash equivalents. The company’s long-term debt amounted to $29,139 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
Currently, Kinder Morgan carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Marathon Petroleum Corporation (MPC - Free Report) , Sunoco LP (SUN - Free Report) and Valero Energy Corporation (VLO - Free Report) . While Marathon Petroleum and Sunoco sport a Zacks Rank #1 (Strong Buy), Valero carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is a well-known name since it operates the largest refining system in the nation. In the past seven days, Marathon Petroleum has witnessed upward earnings estimate revisions for 2023.
Sunoco has a stable business model while distributing motor fuel to approximately 10,000 convenience stores. For this year, SUN has witnessed upward earnings estimate revisions in the past 60 days.
Valero Energy is well poised to gain from constraint capacity in global refining activities and favorable demand for refined products. This, in turn, will possibly drive utilization in refining capacity and boost cashflows.