Summary
Kinder Morgan, Inc. (KMI) reported a net loss of $141 million ($0.08 per share) for the second quarter of 2018, a significant reversal from a net income of $376 million ($0.15 per share) in the same quarter of the previous year. This loss was primarily driven by substantial impairment charges, including a $600 million non-cash impairment related to gathering and processing assets in Oklahoma, and a $270 million impairment on its equity investment in Gulf LNG Holdings Group, LLC. Total revenues saw a slight increase to $3.43 billion from $3.37 billion year-over-year, indicating resilient operational performance despite the significant impairment charges. Operationally, the company's Segment EBDA (Earnings Before Depreciation, Depletion, and Amortization) declined by 38% to $1.11 billion from $1.80 billion in the prior year's second quarter. This decline was most pronounced in the Natural Gas Pipelines segment, impacted by lower commodity prices and asset impairments. However, the company reaffirmed its intention to use the approximately $2 billion in after-tax proceeds expected from the sale of its Trans Mountain Pipeline (TMPL) and related assets to the Government of Canada to pay down debt. The company also repurchased approximately $250 million of its common stock during the period.
Financial Highlights
51 data points| Revenue | $3.43B |
| Cost of Revenue | $1.07B |
| Gross Profit | $2.36B |
| Operating Expenses | $3.16B |
| Operating Income | $272.00M |
| Net Income | -$141.00M |
| EPS (Basic) | $-0.08 |
| Shares Outstanding (Basic) | 2.20B |
Key Highlights
- 1Net loss of $141 million ($0.08 per share) for Q2 2018, compared to net income of $376 million ($0.15 per share) in Q2 2017.
- 2Significant impairment charges totaling $870 million ($600M for gathering/processing assets, $270M for equity investment in Gulf LNG).
- 3Total revenues increased slightly to $3.43 billion in Q2 2018 from $3.37 billion in Q2 2017.
- 4Segment EBDA decreased by 38% to $1.11 billion in Q2 2018 from $1.80 billion in Q2 2017, with Natural Gas Pipelines showing the largest decline.
- 5Expects to use approximately $2 billion in after-tax proceeds from the sale of the Trans Mountain Pipeline to pay down debt.
- 6Repurchased approximately $250 million of common stock during the first six months of 2018 under its share buyback program.
- 7Revenues from contracts with customers was $3.32 billion for Q2 2018, slightly up from $3.29 billion in Q2 2017, reflecting stable operational demand.