Kinder Morgan, Inc. (KMI Quick QuoteKMI - Free Report) is set to report second-quarter 2024 earnings on Jul 17, after the closing bell.

Let us delve into the factors that are anticipated to have affected this pipeline operator’s performance. However, before that, it would be worth taking a look at KMI’s first-quarter performance.

Highlights of Q1 Earnings & Surprise History

In the last reported quarter, the company’s adjusted earnings per share of 34 cents beat the Zacks Consensus Estimate of 33 cents, primarily driven by increased financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Reductions in total costs and expenses further boosted the quarterly performance. 

Kinder Morgan’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, the average negative surprise being 1.54%. This is depicted in the graph below: 

Estimate Trend

The Zacks Consensus Estimate for second-quarter earnings per share of 25 cents has witnessed one downward revision and no upward movement over the past 60 days. The estimate suggests a 4.17% improvement from the prior-year reported number.

The Zacks Consensus Estimate for second-quarter revenues of $3.88 billion indicates a 10.9% increase from the year-ago reported figure.

Factors to Note

Kinder Morgan is expected to have maintained a stable performance in the second quarter of 2024, bolstered by long-term contracts that ensure consistent cash flows and protect against short-term market fluctuations.

As the largest independent transporter of refined products in North America, the company handles 2.4 million barrels per day of petroleum products. This high volume of transported goods likely enhanced Kinder Morgan's profit levels in the second quarter.

However, challenges are likely to have loomed due to the softening of natural gas prices. Per the EIA data, the Natural Gas Henry Hub Spot price has declined 2.03% sequentially in the second quarter and 3.52% year over year, partly due to ongoing geopolitical tensions affecting global energy markets.

These factors are anticipated to have affected demand and pricing dynamics, potentially affecting Kinder Morgan's financial performance in the quarter.

Earnings Whisper

Our proven model does not indicate an earnings beat for Kinder Morgan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: KMI’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Southwestern Energy (SWN Quick QuoteSWN - Free Report) currently has an Earnings ESP of +10.53% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Southwestern Energy is scheduled to release second-quarter earnings on Aug 1. The Zacks Consensus Estimate for SWN’s earnings is pegged at 10 cents per share, suggesting an 11.11% increase from the prior-year reported figure.

Marathon Oil Corporation (MRO Quick QuoteMRO - Free Report) presently has an Earnings ESP of +3.89% and a Zacks Rank #3.

Marathon Oil is scheduled to release second-quarter earnings on Aug 7. The Zacks Consensus Estimate for MRO’s earnings is pegged at 72 cents per share, suggesting a 50% increase from the prior-year reported figure.

Viper Energy Inc. (VNOM Quick QuoteVNOM - Free Report) currently has an Earnings ESP of +6.88% and a Zacks Rank #3.

Viper Energy is scheduled to release second-quarter earnings on Aug 5. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 44 cents per share, suggesting a 6.38% decline from the prior-year reported figure.