KINDER MORGAN, INC. Quarterly Report for Q2 Ended Jun 30, 2017

Summary

Kinder Morgan, Inc. (KMI) reported revenues of $3.37 billion for the second quarter of 2017, a 7% increase compared to the same period in 2016, driven primarily by higher natural gas sales and product sales. Net income available to common stockholders was $337 million ($0.15 per share) for the quarter, a slight increase from $333 million ($0.15 per share) in Q2 2016. The company successfully paid down debt, reducing its long-term debt by $2.2 billion compared to the end of 2016, largely due to proceeds from the KML IPO and other asset sales. The company also announced a $2 billion share buyback program expected to begin in 2018, signaling confidence in its financial position and commitment to returning value to shareholders.

Key Highlights

• 1Total revenues increased by 7% year-over-year to $3.37 billion for the second quarter of 2017.
• 2Net income available to common stockholders increased slightly to $337 million ($0.15 per share) from $333 million ($0.15 per share) in the prior year quarter.
• 3Long-term debt was reduced by $2.2 billion during the first six months of 2017, ending at $34.0 billion.
• 4The company completed an IPO for its Canadian subsidiary, KML, raising approximately $1.3 billion, which was used to pay down debt.
• 5Kinder Morgan announced a new $2 billion share buyback program, commencing in 2018.
• 6Segment EBDA (Earnings Before Depreciation, Depletion, and Amortization) showed mixed results across segments, with Natural Gas Pipelines down 6% while Products Pipelines and Terminals saw modest increases.
• 7The company continues to face legal and environmental contingencies, though management believes the ultimate resolution will not materially adversely impact the business.

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