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Kinder Morgan (KMI) Q2 Earnings Meet Estimates, Revenues Beat
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Kinder Morgan Inc. (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s 23 cents per share.
Total quarterly revenues of $5,151 million beat the Zacks Consensus Estimate of $4,326 million. The top line surged from $3,150 million in the prior-year quarter.
Contributions from natural gas pipelines and Products Pipelines primarily aided Kinder Morgan’s second-quarter results.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Natural Gas Pipelines: For the June quarter of 2022, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,133 million from $1,064 million a year ago. Higher sales and gathering volumes aided the segment.
Products Pipelines: The segment’s EBDA in the second quarter was $299 million, reflecting a rise from $293 million a year ago. Higher volumes of jet fuel contributed to the business.
Gasoline transported volumes decreased 3% year over year in the June quarter, but jet fuel volumes jumped almost 19.2%.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $253 million, up from the year-ago period’s $246 million. Contributions from truck rack terminals and refined product hub facilities primarily aided the unit.
CO2: The segment’s EBDA was recorded at $211 million, up from the year-ago quarter’s figure of $151 million. The outperformance was caused by increased realized prices of crude, NGL and CO2.
Operational Highlights
Expenses related to operations and maintenance totaled $663 million, up from $582 million a year ago. Total operating costs increased to $4,145 million in the second quarter from $3,914 million.
Distributable Cash Flow
Kinder Morgan’s second-quarter distributable cash flow (DCF) was $1,176 million compared with $1,025 million a year ago.
Balance Sheet
As of Jun 30, 2022, Kinder Morgan reported $100 million in cash and cash equivalents. The company’s long-term debt amounted to $28,140 million at the quarter-end, resulting in a debt to capitalization of 49.6%.
Outlook
KMI projects net income attributable to the midstream player for 2022 at $2.5 billion. For this year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior year. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
Zacks Rank & Other Stocks to Consider
Kinder Morgan currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks that investors could look into include Antero Resources (AR - Free Report) , BP plc (BP - Free Report) and Continental Resources, Inc. . While Antero and Continental Resources carry a Zacks Rank #2 (Buy), BP sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.
The substantial exposure to improving commodity price is a huge positive for Antero Resources.
High oil prices are aiding BP’s upstream operations. The sizable refining and marketing operations of BP will protect it if the crude pricing scenario turns unfavorable again. In 2022, BP is likely to witness earnings growth of almost 77%. Over the past few quarters, BP has successfully been reducing long-term debt.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. Considering the price chart, Continental Resources has gained 92.4% in the past year, outpacing 26.2% rise of the composite stocks belonging to the sector.
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Kinder Morgan (KMI) Q2 Earnings Meet Estimates, Revenues Beat
Kinder Morgan Inc. (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s 23 cents per share.
Total quarterly revenues of $5,151 million beat the Zacks Consensus Estimate of $4,326 million. The top line surged from $3,150 million in the prior-year quarter.
Contributions from natural gas pipelines and Products Pipelines primarily aided Kinder Morgan’s second-quarter results.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Kinder Morgan, Inc. price-consensus-eps-surprise-chart | Kinder Morgan, Inc. Quote
Segmental Analysis
Natural Gas Pipelines: For the June quarter of 2022, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,133 million from $1,064 million a year ago. Higher sales and gathering volumes aided the segment.
Products Pipelines: The segment’s EBDA in the second quarter was $299 million, reflecting a rise from $293 million a year ago. Higher volumes of jet fuel contributed to the business.
Gasoline transported volumes decreased 3% year over year in the June quarter, but jet fuel volumes jumped almost 19.2%.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $253 million, up from the year-ago period’s $246 million. Contributions from truck rack terminals and refined product hub facilities primarily aided the unit.
CO2: The segment’s EBDA was recorded at $211 million, up from the year-ago quarter’s figure of $151 million. The outperformance was caused by increased realized prices of crude, NGL and CO2.
Operational Highlights
Expenses related to operations and maintenance totaled $663 million, up from $582 million a year ago. Total operating costs increased to $4,145 million in the second quarter from $3,914 million.
Distributable Cash Flow
Kinder Morgan’s second-quarter distributable cash flow (DCF) was $1,176 million compared with $1,025 million a year ago.
Balance Sheet
As of Jun 30, 2022, Kinder Morgan reported $100 million in cash and cash equivalents. The company’s long-term debt amounted to $28,140 million at the quarter-end, resulting in a debt to capitalization of 49.6%.
Outlook
KMI projects net income attributable to the midstream player for 2022 at $2.5 billion. For this year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior year. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
Zacks Rank & Other Stocks to Consider
Kinder Morgan currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks that investors could look into include Antero Resources (AR - Free Report) , BP plc (BP - Free Report) and Continental Resources, Inc. . While Antero and Continental Resources carry a Zacks Rank #2 (Buy), BP sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.
The substantial exposure to improving commodity price is a huge positive for Antero Resources.
High oil prices are aiding BP’s upstream operations. The sizable refining and marketing operations of BP will protect it if the crude pricing scenario turns unfavorable again. In 2022, BP is likely to witness earnings growth of almost 77%. Over the past few quarters, BP has successfully been reducing long-term debt.
Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.
Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. Considering the price chart, Continental Resources has gained 92.4% in the past year, outpacing 26.2% rise of the composite stocks belonging to the sector.