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Kinder Morgan (KMI) Q3 Earnings Miss Estimates, Revenues Beat
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Kinder Morgan Inc. (KMI - Free Report) reported third-quarter 2022 adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 29 cents per share. However, the bottom line increased from the year-ago quarter’s 22 cents per share.
Total quarterly revenues of $5,177 million beat the Zacks Consensus Estimate of $4,522 million. The top line surged from $3,824 million in the prior-year quarter.
The lower-than-expected quarterly earnings were primarily caused by lower pipeline volumes of gasoline and diesel fuel. The negatives were partially offset by higher contributions from natural gas pipelines and CO2 segments.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Natural Gas Pipelines: For the September-end quarter of 2022, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,159 million from $1,090 million a year ago. Higher gathering volumes primarily aided the segment.
Product Pipelines: The segment’s EBDA in the third quarter was $257 million, reflecting a decline from $280 million a year ago. Lower volumes of gasoline and diesel fuel affected the segment.
Gasoline transported volumes decreased 3% year over year in the September-end quarter but jet fuel volumes jumped 11%.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $240 million, up from the year-ago period’s $233 million. Contributions from refined product hub facilities primarily aided the unit.
CO2: The segment’s EBDA was recorded at $195 million, up from the year-ago quarter’s figure of $154 million. The outperformance was caused by increased realized prices of crude, NGL and CO2.
Operational Highlights
Expenses related to operations and maintenance totaled $712 million, up from $614 million a year ago. Total operating costs increased to $4,246 million in the third quarter from $2,980 million.
Distributable Cash Flow (DCF)
Kinder Morgan’s third-quarter DCF was $1,122 million compared with $1,013 million a year ago.
Balance Sheet
As of Sept 30, 2022, Kinder Morgan reported $483 million in cash and cash equivalents. The company’s long-term debt amounted to $29,000 million at the quarter end, resulting in a debt to capitalization of 49.6%.
Outlook
For 2022, KMI projects net income attributable to the midstream player of $2.5 billion. For this year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior-year reported figure. For 2022, KMI forecasts DCF generation of $4.7 billion and an adjusted EBITDA of $7.2 billion.
Zacks Rank & Stocks to Consider
Kinder Morgan currently carries a Zacks Rank #4 (Sell).
The Williams Companies, Inc. (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB’s board recently approved a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
Williams is scheduled to report third-quarter results on Oct 31. The Zacks Consensus Estimate for WMB’s earnings is pegged at 39 cents per share, suggesting a significant increase from the prior-year reported figure.
Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years.
TotalEnergies is scheduled to report third-quarter results on Oct 27. The Zacks Consensus Estimate for TTE’s earnings is pegged at $4.27 per share, suggesting a significant increase from the prior-year reported figure.
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Kinder Morgan (KMI) Q3 Earnings Miss Estimates, Revenues Beat
Kinder Morgan Inc. (KMI - Free Report) reported third-quarter 2022 adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 29 cents per share. However, the bottom line increased from the year-ago quarter’s 22 cents per share.
Total quarterly revenues of $5,177 million beat the Zacks Consensus Estimate of $4,522 million. The top line surged from $3,824 million in the prior-year quarter.
The lower-than-expected quarterly earnings were primarily caused by lower pipeline volumes of gasoline and diesel fuel. The negatives were partially offset by higher contributions from natural gas pipelines and CO2 segments.
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 September-end quarter of 2022, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,159 million from $1,090 million a year ago. Higher gathering volumes primarily aided the segment.
Product Pipelines: The segment’s EBDA in the third quarter was $257 million, reflecting a decline from $280 million a year ago. Lower volumes of gasoline and diesel fuel affected the segment.
Gasoline transported volumes decreased 3% year over year in the September-end quarter but jet fuel volumes jumped 11%.
Terminals: Through the segment, Kinder Morgan generated quarterly EBDA of $240 million, up from the year-ago period’s $233 million. Contributions from refined product hub facilities primarily aided the unit.
CO2: The segment’s EBDA was recorded at $195 million, up from the year-ago quarter’s figure of $154 million. The outperformance was caused by increased realized prices of crude, NGL and CO2.
Operational Highlights
Expenses related to operations and maintenance totaled $712 million, up from $614 million a year ago. Total operating costs increased to $4,246 million in the third quarter from $2,980 million.
Distributable Cash Flow (DCF)
Kinder Morgan’s third-quarter DCF was $1,122 million compared with $1,013 million a year ago.
Balance Sheet
As of Sept 30, 2022, Kinder Morgan reported $483 million in cash and cash equivalents. The company’s long-term debt amounted to $29,000 million at the quarter end, resulting in a debt to capitalization of 49.6%.
Outlook
For 2022, KMI projects net income attributable to the midstream player of $2.5 billion. For this year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior-year reported figure. For 2022, KMI forecasts DCF generation of $4.7 billion and an adjusted EBITDA of $7.2 billion.
Zacks Rank & Stocks to Consider
Kinder Morgan currently carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies, Inc. (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB’s board recently approved a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
Williams is scheduled to report third-quarter results on Oct 31. The Zacks Consensus Estimate for WMB’s earnings is pegged at 39 cents per share, suggesting a significant increase from the prior-year reported figure.
Equinor ASA (EQNR - Free Report) is one of the premier integrated energy companies in the world. For 2022, EQNR announced the increase of the share buyback program of up to $6 billion from the prior stated $5 billion.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years.
TotalEnergies is scheduled to report third-quarter results on Oct 27. The Zacks Consensus Estimate for TTE’s earnings is pegged at $4.27 per share, suggesting a significant increase from the prior-year reported figure.