Early Access

10-QPeriod: Q3 FY2021

KINDER MORGAN, INC. Quarterly Report for Q3 Ended Sep 30, 2021

Filed October 22, 2021For Securities:KMIEP-PC

Summary

Kinder Morgan, Inc. (KMI) reported solid financial results for the nine months ended September 30, 2021, with net income attributable to the company reaching $1.15 billion, a significant turnaround from a net loss of $488 million in the prior year period. This improvement was driven by strong performance across its business segments, particularly Natural Gas Pipelines and CO2, which benefited from favorable market conditions and recovery from the February 2021 winter storm. The company also completed two strategic acquisitions, Kinetrex Energy and Stagecoach Gas Services LLC, enhancing its portfolio in low-carbon energy and natural gas infrastructure, respectively. KMI's financial health remains robust, supported by substantial cash flows from operations, which reached $4.44 billion for the nine-month period. The company maintained its commitment to shareholders by increasing its expected annual dividend and repurchased shares as part of its ongoing buyback program. Despite a significant $1.6 billion impairment charge related to South Texas gathering and processing assets, the overall financial performance demonstrates resilience and strategic execution.

Financial Statements
Beta
Revenue$3.82B
Cost of Revenue$1.56B
Gross Profit$2.27B
Operating Expenses$2.98B
Operating Income$844.00M
Net Income$495.00M
EPS (Basic)$0.22
EPS (Diluted)$0.22
Shares Outstanding (Basic)2.27B
Shares Outstanding (Diluted)2.27B

Key Highlights

  • 1Net income attributable to Kinder Morgan, Inc. was $1.15 billion for the nine months ended September 30, 2021, a substantial improvement from a net loss of $488 million in the prior year period.
  • 2Total revenues increased to $12.19 billion for the nine months ended September 30, 2021, up from $8.59 billion in the comparable period of 2020.
  • 3The company completed two acquisitions: Kinetrex Energy for $318 million and Stagecoach Gas Services LLC for $1.23 billion, bolstering its presence in renewable natural gas and natural gas infrastructure.
  • 4Cash flows from operating activities were robust at $4.44 billion for the nine months ended September 30, 2021, providing strong financial flexibility.
  • 5A significant $1.6 billion non-cash impairment loss was recognized on South Texas gathering and processing assets, primarily due to lower re-contracting expectations.
  • 6Kinder Morgan expects to declare full-year 2021 dividends of $1.08 per share, a 3% increase from 2020.
  • 7Total debt decreased to $31.81 billion as of September 30, 2021, from $33.40 billion at the end of 2020.

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