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Kinder Morgan (KMI) Beats on Q4 Earnings and Revenues
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Kinder Morgan Inc. (KMI - Free Report) reported fourth-quarter 2016 earnings of 19 cents per share from continuing operations. The bottom line surpassed the Zacks Consensus Estimate of 18 cents per share but decreased about 30% year over year from 27 cents.
Full-year 2016 earnings of 62 cents per share beat the Zacks Consensus Estimate of 56 cents but decreased from the year-ago figure of 85 cents.
Total revenue for the quarter declined 6.8% year over year to $3,389.0 million. Nonetheless, the top line surpassed the Zacks Consensus Estimate of $3,320.0 million.
For 2016, total revenue decreased to $13,058 million from $14,403 million reported in 2015. Full-year revenues also beat the Zacks Consensus Estimate of $12,980 million.
Investor confidence on the Kinder Morgan stock is reflected by its price chart. Shares of the company appreciated 86.8% in the last one year, while the Zacks categorized Oil & Gas-Production/Pipeline industry gained 71.4% in the same time span.
Dividend
Kinder Morgan maintained its quarterly dividend at 12.5 cents per share (50 cents per share annualized). The dividend is payable on Feb 15, to shareholders on record as of Feb 1, 2017.
Operational Highlights
Total expenses in the quarter were $2,455 million, down 36.7% from $3,880 million spent in the fourth quarter of 2015.
Operating income of $934 million compared unfavorably with an operating loss of $244.0 million in the year-ago quarter. The quarterly results reflect an improvement of 482.8% from the fourth-quarter 2015 figures.
Fourth-quarter net income of $170 million compared unfavorably with net loss of $721 million in the comparable quarter in 2015.
Financials
The company reported fourth-quarter distributable cash flow of $1,147 million compared with $1,233 million in the year-earlier quarter. The decrease is mainly attributable to lower contributions from SNG as a result of a 50% sale of the pipeline during the third quarter of 2016 (which helped improve KMI’s leverage metrics). Decline in its CO2 segment as well as lower realized crude oil prices and lower volumes also contributed to the underperformance.
As of Dec 31, 2016, Kinder Morgan had $684 million in cash and cash equivalents. The company’s long-term debt amounted to $36,105 million at the end of the quarter.
Outlook
Kinder Morgan is likely to pay dividends of 50 cents per share in 2017. Given the prolonged weakness in commodity prices, the company expects EBITDA and distributable cash flow of about $7.2 billion and $4.46 billion, respectively.
For 2017, Kinder Morgan projects capital expenditure of about $3.2 billion.
Kinder Morgan Inc. Price, Consensus and EPS Surprise
Kinder Morgan currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Braskem S.A. (BAK - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Braskem posted a positive earnings surprise of 107.79% in the last reported quarter.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It had an average earnings surprise of 40.55% in the four trailing quarters.
Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.
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Kinder Morgan (KMI) Beats on Q4 Earnings and Revenues
Kinder Morgan Inc. (KMI - Free Report) reported fourth-quarter 2016 earnings of 19 cents per share from continuing operations. The bottom line surpassed the Zacks Consensus Estimate of 18 cents per share but decreased about 30% year over year from 27 cents.
Full-year 2016 earnings of 62 cents per share beat the Zacks Consensus Estimate of 56 cents but decreased from the year-ago figure of 85 cents.
Total revenue for the quarter declined 6.8% year over year to $3,389.0 million. Nonetheless, the top line surpassed the Zacks Consensus Estimate of $3,320.0 million.
For 2016, total revenue decreased to $13,058 million from $14,403 million reported in 2015. Full-year revenues also beat the Zacks Consensus Estimate of $12,980 million.
Investor confidence on the Kinder Morgan stock is reflected by its price chart. Shares of the company appreciated 86.8% in the last one year, while the Zacks categorized Oil & Gas-Production/Pipeline industry gained 71.4% in the same time span.
Dividend
Kinder Morgan maintained its quarterly dividend at 12.5 cents per share (50 cents per share annualized). The dividend is payable on Feb 15, to shareholders on record as of Feb 1, 2017.
Operational Highlights
Total expenses in the quarter were $2,455 million, down 36.7% from $3,880 million spent in the fourth quarter of 2015.
Operating income of $934 million compared unfavorably with an operating loss of $244.0 million in the year-ago quarter. The quarterly results reflect an improvement of 482.8% from the fourth-quarter 2015 figures.
Fourth-quarter net income of $170 million compared unfavorably with net loss of $721 million in the comparable quarter in 2015.
Financials
The company reported fourth-quarter distributable cash flow of $1,147 million compared with $1,233 million in the year-earlier quarter. The decrease is mainly attributable to lower contributions from SNG as a result of a 50% sale of the pipeline during the third quarter of 2016 (which helped improve KMI’s leverage metrics). Decline in its CO2 segment as well as lower realized crude oil prices and lower volumes also contributed to the underperformance.
As of Dec 31, 2016, Kinder Morgan had $684 million in cash and cash equivalents. The company’s long-term debt amounted to $36,105 million at the end of the quarter.
Outlook
Kinder Morgan is likely to pay dividends of 50 cents per share in 2017. Given the prolonged weakness in commodity prices, the company expects EBITDA and distributable cash flow of about $7.2 billion and $4.46 billion, respectively.
For 2017, Kinder Morgan projects capital expenditure of about $3.2 billion.
Kinder Morgan Inc. Price, Consensus and EPS Surprise
Kinder Morgan Inc. Price, Consensus and EPS Surprise | Kinder Morgan Inc. Quote
Zacks Rank and Stocks to Consider
Kinder Morgan currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Braskem S.A. (BAK - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Braskem posted a positive earnings surprise of 107.79% in the last reported quarter.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It had an average earnings surprise of 40.55% in the four trailing quarters.
Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>