10-KPeriod: FY2023

KINDER MORGAN, INC. Annual Report, Year Ended Dec 31, 2023

Filed February 20, 2024For Securities:KMIEP-PC

Summary

Kinder Morgan, Inc. (KMI) has filed its 10-K for the fiscal year ended December 30, 2023, showcasing a robust infrastructure network and strategic growth initiatives. The company's core business involves the transportation and storage of natural gas, refined petroleum products, and crude oil across North America. KMI's significant asset base includes approximately 82,000 miles of pipelines and 139 terminals, underscoring its critical role in the energy supply chain. Financially, KMI reported revenues of $15.3 billion, a decrease from the prior year, primarily driven by lower commodity prices in natural gas and product sales, though offset by derivative contract impacts. Despite revenue fluctuations, the company maintained strong operating income and generated substantial cash flow from operations, which was used to fund capital expenditures, debt repayment, and shareholder returns. Key financial activities in 2023 included the acquisition of the STX Midstream pipeline system for $1.8 billion, debt issuances totaling $1.5 billion, and significant debt repayments of $3.2 billion. The company also continued its commitment to shareholder returns through dividends and share repurchases, with a planned 2% increase in dividends for 2024.

Financial Highlights

48 data points
Beta

Revenue

$15.33B

Net Income

$2.39B

15.6% Net Margin

EPS (Diluted)

$1.06

Total Assets

$71.02B

Cash & Equivalents

$83.00M

Free Cash Flow

$4.17B

Financial Statements
Beta
Revenue$15.33B
Operating Expenses$11.07B
Operating Income$4.26B
Net Income$2.39B
EPS (Basic)$1.06
EPS (Diluted)$1.06
Shares Outstanding (Basic)2.23B
Shares Outstanding (Diluted)2.23B

Key Highlights

  • 1Acquisition of STX Midstream pipeline system for $1.83 billion in December 2023, strengthening its natural gas pipeline network.
  • 2Declared dividends of $1.15 per share for 2024, representing a 2% increase over 2023, signaling continued commitment to shareholder returns.
  • 3Expects to invest $2.3 billion in expansion projects and joint ventures in 2024.
  • 4Generated $6.49 billion in cash flow from operating activities in 2023, demonstrating strong operational cash generation.
  • 5Repurchased approximately 32 million shares of common stock for $522 million in 2023 under its $3 billion share repurchase program, with $1.5 billion remaining capacity.
  • 6Revenues decreased by 20% to $15.3 billion in 2023, primarily due to lower commodity prices impacting natural gas and product sales.
  • 7Maintains significant infrastructure, including approximately 82,000 miles of pipelines and 139 terminals as of December 31, 2023.

Frequently Asked Questions

Kinder Morgan reported revenues of $15.3 billion, a decrease from $19.2 billion in 2022, largely due to lower commodity prices. Operating income increased by 5% to $4.3 billion. Net income attributable to Kinder Morgan, Inc. was $2.39 billion, down from $2.55 billion in 2022. Distributable Cash Flow (DCF) was $4.715 billion, or $2.10 per share, a slight decrease from the prior year.

The most significant strategic action was the acquisition of the STX Midstream pipeline system for $1.831 billion, which includes natural gas pipeline systems serving the Eagle Ford basin. The company also continued to invest in expansion projects across its segments and returned capital to shareholders through dividends and share repurchases. Kinder Morgan plans to increase its 2024 dividend by 2% and invest $2.3 billion in expansion projects.

Kinder Morgan had approximately $31.9 billion in consolidated debt as of December 31, 2023. The company actively manages its debt through issuances, repayments, and utilization of its credit facilities. In 2023, it issued $1.5 billion in senior notes and repaid $3.2 billion of maturing debt. The company aims to maintain a strong financial profile and has a target leverage ratio, which it monitors closely. Approximately 26% of its debt was subject to variable interest rates as of December 31, 2023.

Kinder Morgan operates primarily through four reportable segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The Natural Gas Pipelines segment is the largest, contributing the most to Segment EBDA. The Products Pipelines segment transports refined products and crude oil, Terminals handles various commodities, and the CO2 segment is involved in carbon dioxide production and transportation for enhanced oil recovery. In 2023, Natural Gas Pipelines Segment EBDA was $5.28 billion, Products Pipelines was $1.06 billion, Terminals was $1.04 billion, and CO2 was $689 million.