Summary
Kinder Morgan, Inc. (KMI) reported strong financial results for the three and nine months ended September 30, 2018. Total revenues increased year-over-year, driven by growth across most segments, particularly Natural Gas Pipelines. Net income attributable to Kinder Morgan, Inc. saw a significant increase, largely influenced by the divestiture of the Trans Mountain Pipeline (TMPL) system and its expansion project, which resulted in a substantial pre-tax gain. The company also demonstrated robust operating cash flow, reflecting the underlying strength of its midstream infrastructure business. Liquidity remains strong, with a significant increase in cash and cash equivalents due to proceeds from the TMPL sale and ongoing operational cash generation. KMI continues to manage its debt effectively, and the company announced its intention to use a portion of the TMPL sale proceeds to pay down debt. The company remains committed to returning value to shareholders through dividends and share repurchases, while also maintaining disciplined capital allocation for growth initiatives.
Financial Highlights
51 data points| Revenue | $3.52B |
| Cost of Revenue | $1.14B |
| Gross Profit | $2.38B |
| Operating Expenses | $2.00B |
| Operating Income | $1.51B |
| Net Income | $732.00M |
| EPS (Basic) | $0.31 |
| Shares Outstanding (Basic) | 2.21B |
Key Highlights
- 1Total revenues increased to $3.52 billion for the three months ended September 30, 2018, up from $3.28 billion in the prior year period.
- 2Net income attributable to Kinder Morgan, Inc. rose to $732 million ($0.31 per share) for the three months ended September 30, 2018, compared to $373 million ($0.15 per share) in the prior year period.
- 3The divestiture of the Trans Mountain Pipeline (TMPL) system and its expansion project on August 31, 2018, resulted in a pre-tax gain of $622 million.
- 4Cash flows from operating activities were strong, totaling $3.38 billion for the nine months ended September 30, 2018, compared to $3.31 billion in the prior year period.
- 5Cash and cash equivalents increased significantly to $3.46 billion as of September 30, 2018, up from $264 million as of December 31, 2017, driven by proceeds from the TMPL sale.
- 6The company declared a quarterly dividend of $0.20 per common share for the period, an increase from $0.125 per share in the prior year period.
- 7Segment EBDA (Earnings Before Depreciation, Depletion and Amortization) increased to $2.42 billion for the nine months ended September 30, 2018, up from $2.41 billion in the prior year period, before considering specific "certain items."