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Sep 30, 2024
Kinder Morgan Q3 2024 Earnings Report
Reported a solid quarter with increased financial contributions from Natural Gas Pipelines and Terminals, and earnings per share (EPS) up 17% Compared to Third Quarter 2023.
Key Takeaways
Kinder Morgan reported a solid third quarter with strong operational and financial performance, driven by increased contributions from the Natural Gas Pipelines and Terminals business segments. The company continues to internally fund high-quality capital projects and generate substantial cash flow. They finalized the investment decision with respect to a $455 million expansion on the Gulf Coast Express Pipeline.
Third quarter earnings per share (EPS) of $0.28, up 17% compared to the third quarter of 2023.
Adjusted EBITDA of $1,880 million, up 2% from $1,835 million in the third quarter of 2023.
Generated cash flow from operations of $1.2 billion, and $0.6 billion in free cash flow (FCF) after capital expenditures.
Project backlog at the end of the third quarter was $5.1 billion.
Kinder Morgan
Kinder Morgan
Kinder Morgan Revenue by Segment
Revenue by Segment
Natural Gas Pipelines Revenue
CapyFin.comProducts Pipelines Revenue
CapyFin.comTerminals Revenue
CapyFin.comCO2 Revenue
CapyFin.com Forward Guidance
Kinder Morgan expects to be below budget on Adjusted EBITDA by approximately 2% and on Adjusted EPS by approximately 4%, although we expect Adjusted EBITDA to be up 5% and Adjusted EPS to be up 9% for the full year versus 2023. We expect to end the year with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times.
Positive Outlook
- Expects Adjusted EBITDA to be up 5% for the full year versus 2023.
- Expects Adjusted EPS to be up 9% for the full year versus 2023.
- Expects to declare dividends of $1.15 per share for 2024, a 2% increase from the dividends declared for 2023.
- Budgeted 2024 DCF of $5 billion ($2.26 per share), Adjusted EBITDA of $8.16 billion, both up 8% versus 2023.
- Expects to end 2024 with a Net Debt-to-Adjusted EBITDA ratio of 3.9 times.
Challenges Ahead
- Due to lower than budgeted commodity prices.
- Start-up delays on our RNG facilities.
- Expects to be below budget on Adjusted EBITDA by approximately 2%.
- Expects to be below budget on Adjusted EPS by approximately 4%.
- Expects to end the year with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times.
Revenue & Expenses
Visualization of income flow from segment revenue to net income