Summary
Kinder Morgan, Inc. (KMI) reported a strong financial performance in 2021, demonstrating resilience and strategic growth. The company's net income attributable to Kinder Morgan, Inc. significantly increased to $1.78 billion, up from $119 million in 2020, largely driven by a substantial positive impact from the February 2021 winter storm on its Natural Gas Pipelines and CO2 segments, alongside a notable reduction in impairments. KMI also executed its business strategy by completing key acquisitions, including Stagecoach Gas Services LLC and Kinetrex, bolstering its natural gas and renewable energy infrastructure capabilities, respectively. Financially, KMI managed its debt effectively by issuing new senior notes and repaying maturing debt, while also securing a new $3.5 billion revolving credit facility. The company maintained its commitment to shareholder returns, increasing its declared dividend for 2022. KMI's diversified business segments, particularly Natural Gas Pipelines and Products Pipelines, showed growth in Adjusted Segment EBDA, indicating solid operational performance and fee-based revenue streams that provide stability.
Financial Highlights
50 data points| Revenue | $16.61B |
| Cost of Revenue | $6.49B |
| Gross Profit | $10.12B |
| Operating Expenses | $13.69B |
| Operating Income | $2.92B |
| Net Income | $1.78B |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 2.27B |
| Shares Outstanding (Diluted) | 2.27B |
Key Highlights
- 1Significant net income increase: Net income attributable to Kinder Morgan, Inc. rose to $1.78 billion in 2021, a substantial improvement from $119 million in 2020.
- 2Strong Segment EBDA Growth: Total segment EBDA increased by 26% to $6.55 billion in 2021, driven by robust performance in Natural Gas Pipelines and CO2 segments, partly due to the positive impact of the February 2021 winter storm.
- 3Strategic Acquisitions: KMI completed significant acquisitions, including Stagecoach Gas Services LLC ($1.26 billion) and Kinetrex ($318 million), enhancing its natural gas and renewable natural gas (RNG) businesses.
- 4Debt Management and Financing: The company issued $1.55 billion in new senior notes, repaid $2.4 billion in maturing notes, and secured a new $3.5 billion revolving credit facility, demonstrating sound financial management.
- 5Commitment to Shareholder Returns: KMI declared a 3% increase in its quarterly dividend for 2022, expecting to pay $1.11 per share, and maintained flexibility for opportunistic share repurchases.
- 6Reduced Impairments: Impairments decreased significantly in 2021 compared to 2020, with a large asset impairment loss related to South Texas gathering and processing assets in 2021 being offset by a reduction in goodwill and asset impairments compared to the prior year.
- 7Diversified Infrastructure Portfolio: KMI operates across Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments, with a vast network of pipelines and terminals, providing a stable and diversified revenue base.