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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.
Revenue by Segment
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%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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