It has been about a month since the last earnings report for Kinder Morgan (KMI Quick QuoteKMI - Free Report) . Shares have added about 7.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Kinder Morgan due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Kinder Morgan Q2 Earnings Meet Estimates

Kinder Morgan 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.

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%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

The consensus estimate has shifted 6.48% due to these changes.

VGM Scores

Currently, Kinder Morgan has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Kinder Morgan has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.