Summary
Kinder Morgan, Inc. (KMI) reported lower revenues and net income for the third quarter of 2019 compared to the same period in 2018. Total revenues decreased to $3.21 billion from $3.52 billion, and net income available to common stockholders fell to $506 million from $693 million. This decline was largely driven by a significant decrease in the CO2 segment's performance and the absence of the prior year's substantial gain from the Trans Mountain Pipeline (TMPL) sale. Despite the quarterly dip, the nine-month performance showed a notable increase in net income available to common stockholders, rising to $1.58 billion from $998 million in the prior year, primarily due to improved performance in the Natural Gas Pipelines segment and reduced interest expenses. Operationally, Kinder Morgan is progressing with strategic divestitures, including the announced sale of the U.S. portion of the Cochin Pipeline and its stake in Kinder Morgan Canada (KML) to Pembina Pipeline Corporation, expected to close by late 2019 or early 2020. The company also continues to manage its debt obligations, with total debt decreasing from $37.3 billion at the end of 2018 to $35.4 billion as of September 30, 2019. Cash flow from operations remains robust, providing adequate liquidity, though cash and cash equivalents significantly decreased due to debt repayments and strategic distributions.
Financial Highlights
51 data points| Revenue | $3.21B |
| Cost of Revenue | $762.00M |
| Gross Profit | $2.45B |
| Operating Expenses | $2.26B |
| Operating Income | $951.00M |
| Net Income | $506.00M |
| EPS (Basic) | $0.22 |
| Shares Outstanding (Basic) | 2.26B |
Key Highlights
- 1Third-quarter net income available to common stockholders decreased by 27% to $506 million from $693 million year-over-year, primarily due to lower segment EBDA and the absence of prior year divestiture gains.
- 2Nine-month net income available to common stockholders increased by 58% to $1.58 billion from $998 million year-over-year, driven by strong performance in the Natural Gas Pipelines segment and reduced interest expenses.
- 3Total revenues for the quarter declined 8.6% to $3.21 billion, while nine-month revenues decreased 4.9% to $9.86 billion.
- 4The company is proceeding with the sale of the U.S. portion of the Cochin Pipeline and its interest in Kinder Morgan Canada (KML) to Pembina Pipeline Corporation, expected to close in late 2019 or early 2020.
- 5Total debt decreased from $37.32 billion at December 31, 2018, to $35.36 billion at September 30, 2019.
- 6Cash and cash equivalents significantly decreased to $241 million from $3.28 billion at the end of 2018, largely due to debt repayments and distributions.
- 7The company anticipates 2019 Distributable Cash Flow (DCF) to be slightly below its $5.0 billion budget, mainly due to delays in the Elba Liquefaction project and lower commodity prices impacting the CO2 segment.