Summary
Kinder Morgan, Inc. (KMI) reported mixed financial results for the quarter ending June 29, 2021. While total revenues saw a significant increase to $3.15 billion compared to $2.56 billion in the prior year's quarter, driven by higher commodity sales and services, the company recorded a substantial net loss of $757 million attributable to Kinder Morgan, Inc. This loss was heavily impacted by a significant non-cash impairment charge of $1.6 billion related to South Texas gathering and processing assets within the Natural Gas Pipeline segment. Despite the quarterly loss, the six-month period showed a positive net income of $652 million, a substantial improvement from a loss of $943 million in the same period last year. This turnaround was largely due to a significant reduction in impairment charges compared to the prior year and improved performance in key segments like Natural Gas Pipelines and CO2, partly influenced by the February 2021 winter storm. Operationally, KMI completed the acquisition of Stagecoach Gas Services LLC for approximately $1.23 billion shortly after the quarter's end and announced an agreement to acquire Kinetrex Energy. The company also continued its focus on returning capital to shareholders, declaring a cash dividend of $0.27 per share for the quarter. While the impairment charge presents a near-term concern, the improved six-month performance, strategic acquisitions, and continued dividend payments offer a more positive outlook for the year.
Financial Highlights
49 data points| Revenue | $3.15B |
| Cost of Revenue | $936.00M |
| Gross Profit | $2.21B |
| Operating Expenses | $3.91B |
| Operating Income | -$764.00M |
| Net Income | -$757.00M |
| EPS (Basic) | $-0.34 |
| EPS (Diluted) | $-0.34 |
| Shares Outstanding (Basic) | 2.27B |
| Shares Outstanding (Diluted) | 2.27B |
Key Highlights
- 1Total revenues increased to $3.15 billion in Q2 2021, up from $2.56 billion in Q2 2020, driven by higher commodity sales and services.
- 2A significant non-cash impairment loss of $1.6 billion was recognized in the Natural Gas Pipeline segment for South Texas gathering and processing assets.
- 3Net loss attributable to Kinder Morgan, Inc. was $757 million for Q2 2021, a worsening from a net loss of $637 million in Q2 2020, primarily due to the impairment charge.
- 4For the six months ended June 30, 2021, KMI reported a net income of $652 million, a substantial improvement from a net loss of $943 million in the same period of 2020.
- 5The company completed the acquisition of Stagecoach Gas Services LLC for approximately $1.23 billion shortly after the quarter ended.
- 6Kinder Morgan declared a cash dividend of $0.27 per share for the quarter, indicating continued commitment to shareholder returns.
- 7Operating expenses were largely offset by gains from equity investments and a reduction in the overall impairment charges for the six-month period.