HOUSTON - Kinder Morgan , Inc. (NYSE: NYSE:KMI) reported a miss in both earnings and revenue for the second quarter, with earnings per share (EPS) coming in at $0.25, one cent below the analyst estimate of $0.26.
Revenue for the quarter was also below expectations, totaling $3.57 billion against the consensus estimate of $4.14 billion. Following the report, shares of Kinder Morgan fell by 3.14%.
Despite the shortfall in the current quarter, Kinder Morgan's outlook for 2024 remains optimistic. The company has budgeted a net income attributable to KMI of $2.7 billion, translating to $1.22 per share, which marks a 15% increase compared to 2023. Dividends are projected to rise by 2% to $1.15 per share for 2024. Additionally, Kinder Morgan forecasts a distributable cash flow (DCF) of $5 billion ($2.26 per share) and an Adjusted EBITDA of $8.16 billion for the year, both up by 8% from 2023. The company also aims to conclude 2024 with a Net Debt-to-Adjusted EBITDA ratio of 3.9 times.
The company's financial plans for 2024 are based on the assumption of average annual prices for West Texas Intermediate (WTI) crude oil at $82 per barrel and Henry Hub natural gas at $3.50 per million British thermal units (MMBtu), aligning with the published forward curve during the company's annual budget process.
Kinder Morgan's President Kim Dang highlighted the strong operational and financial performance in the second quarter, despite the earnings and revenue miss. The company continued to fund high-quality capital projects internally while generating substantial cash flow from operations. Dang also emphasized the company's robust balance sheet and the strategic growth in demand for natural gas, particularly for LNG exports and natural gas exports to Mexico.
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