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Kinder Morgan (KMI) Expects Strong '24 Results, Boosts Outlook
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Kinder Morgan, Inc. (KMI - Free Report) is anticipating an increase in earnings for 2024, driven by its strategic focus on the expansion of natural gas pipelines and investments in energy transition ventures.
For 2024, KMI anticipates the net income attributable to the company to be $1.21 per share, marking an 11% increase from its projection of $1.09 per share for 2023.
The company expects to achieve $8 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2024, a 5% increase from the $7.6 billion forecast for 2023. Additionally, KMI anticipates 5% year-over-year growth in its distributable cash flow per share, reaching $2.21.
Kinder Morgan expects sustained benefits from robust natural gas market fundamentals, fueling growth in its current assets related to natural gas transportation, storage, and gathering and processing. The company looks forward to capitalizing on expansion opportunities within this sector.
The pipeline operator expects to gain from higher rates in refined products, increased demand for renewable diesel and its feedstocks, and growing demand for renewable natural gas. KMI foresees a positive impact from contract rate escalations in its products pipelines and terminals business segments.
Kinder Morgan has outlined plans to invest $2.3 billion in discretionary capital expenditure, covering expansion projects and contributions to joint ventures.
The oil and gas transportation sector has seen increased profits, driven by strong demand attributed to low U.S. inventory levels and heightened exports. This surge in demand is a result of buyers seeking alternatives to Russia oil following Moscow’s invasion of Ukraine last year.
Similar trends are observed among Canada peers, as TC Energy Corporation (TRP - Free Report) and Enbridge Inc. (ENB - Free Report) project higher adjusted core earnings for 2024.
TC Energy anticipates a significant 8% increase in comparable EBITDA for 2023 from the previous year, surpassing initial projections. The positive outcome is attributed to a robust performance in October and favorable exchange rates.
Looking into 2024, the company expressed a bullish outlook, forecasting 5-7% year-over-year growth in comparable EBITDA. This projection excludes any potential impacts of the planned asset sale program or the South Bow spinoff.
Enbridge anticipates a rise in core earnings for 2024, with a projected C$9.3 billion from its liquids pipeline business. ENB forecasts adjusted core earnings of C$16.6-C$17.2 billion for the upcoming year, surpassing its 2023 expectations of C$15.9-C$16.5 billion.
The optimistic outlook is driven by the expected increase in demand, fueled by the ongoing trend of profitability in the Canada oil and gas transportation sector. The sector’s positive performance is attributed to reduced U.S. inventory levels and a substantial shift in exports away from Russia oil, prompted by Russia's invasion of Ukraine.
The Williams Companies (WMB - Free Report) reported third-quarter 2023 adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 40 cents. The guidance for the 2023 dividend increased 5.3% on an annualized basis to $1.79 per share from $1.70 in 2022.
Williams Companies’ debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. Williams is also paying its shareholders an attractive dividend yielding around 5%. Beside this, the company has a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
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Kinder Morgan (KMI) Expects Strong '24 Results, Boosts Outlook
Kinder Morgan, Inc. (KMI - Free Report) is anticipating an increase in earnings for 2024, driven by its strategic focus on the expansion of natural gas pipelines and investments in energy transition ventures.
For 2024, KMI anticipates the net income attributable to the company to be $1.21 per share, marking an 11% increase from its projection of $1.09 per share for 2023.
The company expects to achieve $8 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2024, a 5% increase from the $7.6 billion forecast for 2023. Additionally, KMI anticipates 5% year-over-year growth in its distributable cash flow per share, reaching $2.21.
Kinder Morgan expects sustained benefits from robust natural gas market fundamentals, fueling growth in its current assets related to natural gas transportation, storage, and gathering and processing. The company looks forward to capitalizing on expansion opportunities within this sector.
The pipeline operator expects to gain from higher rates in refined products, increased demand for renewable diesel and its feedstocks, and growing demand for renewable natural gas. KMI foresees a positive impact from contract rate escalations in its products pipelines and terminals business segments.
Kinder Morgan has outlined plans to invest $2.3 billion in discretionary capital expenditure, covering expansion projects and contributions to joint ventures.
The oil and gas transportation sector has seen increased profits, driven by strong demand attributed to low U.S. inventory levels and heightened exports. This surge in demand is a result of buyers seeking alternatives to Russia oil following Moscow’s invasion of Ukraine last year.
Similar trends are observed among Canada peers, as TC Energy Corporation (TRP - Free Report) and Enbridge Inc. (ENB - Free Report) project higher adjusted core earnings for 2024.
TC Energy anticipates a significant 8% increase in comparable EBITDA for 2023 from the previous year, surpassing initial projections. The positive outcome is attributed to a robust performance in October and favorable exchange rates.
Looking into 2024, the company expressed a bullish outlook, forecasting 5-7% year-over-year growth in comparable EBITDA. This projection excludes any potential impacts of the planned asset sale program or the South Bow spinoff.
Enbridge anticipates a rise in core earnings for 2024, with a projected C$9.3 billion from its liquids pipeline business. ENB forecasts adjusted core earnings of C$16.6-C$17.2 billion for the upcoming year, surpassing its 2023 expectations of C$15.9-C$16.5 billion.
The optimistic outlook is driven by the expected increase in demand, fueled by the ongoing trend of profitability in the Canada oil and gas transportation sector. The sector’s positive performance is attributed to reduced U.S. inventory levels and a substantial shift in exports away from Russia oil, prompted by Russia's invasion of Ukraine.
Zacks Rank & Stock to Consider
KMI currently has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following company that presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies (WMB - Free Report) reported third-quarter 2023 adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 40 cents. The guidance for the 2023 dividend increased 5.3% on an annualized basis to $1.79 per share from $1.70 in 2022.
Williams Companies’ debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. Williams is also paying its shareholders an attractive dividend yielding around 5%. Beside this, the company has a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.