10-QPeriod: Q3 FY2022

KINDER MORGAN, INC. Quarterly Report for Q3 Ended Sep 30, 2022

Filed October 21, 2022For Securities:KMIEP-PC

Summary

Kinder Morgan, Inc. (KMI) reported a strong third quarter and a significant increase in year-to-date net income attributable to KMI for the period ending September 29, 2022. The company saw a notable rise in total revenues to $5.177 billion for the quarter, up from $3.824 billion in the prior year, driven by higher service and commodity sales. Net income attributable to KMI for the quarter was $576 million ($0.25 per share), compared to $495 million ($0.22 per share) in the same period last year. For the nine months ended September 29, 2022, net income attributable to KMI surged to $1.878 billion, a substantial increase from $1.147 billion in the prior year, largely due to the absence of a significant impairment loss recorded in 2021 and improved performance across its segments, particularly Natural Gas Pipelines and Products Pipelines. The company continues to focus on deleveraging and returning capital to shareholders, as evidenced by paying down debt and declaring dividends. KMI also made strategic acquisitions in the renewable natural gas space, aligning with its energy transition strategy. The company maintains a strong liquidity position, with ample availability under its credit facilities. While the company faces ongoing litigation and environmental matters, it believes the ultimate resolution of these will not materially impact its business.

Financial Highlights

50 data points
Beta

Revenue

$5.18B

47.5% Gross Margin

Net Income

$576.00M

11.1% Net Margin

EPS (Diluted)

$0.25

Total Assets

$69.99B

Cash & Equivalents

$483.00M

Free Cash Flow

$550.00M

Financial Statements
Beta
Revenue$5.18B
Cost of Revenue$2.72B
Gross Profit$2.46B
Operating Expenses$4.25B
Operating Income$931.00M
Net Income$576.00M
EPS (Basic)$0.25
EPS (Diluted)$0.25
Shares Outstanding (Basic)2.25B
Shares Outstanding (Diluted)2.25B

Key Highlights

  • 1Total Revenues increased to $5.177 billion in Q3 2022, up from $3.824 billion in Q3 2021.
  • 2Net Income Attributable to Kinder Morgan, Inc. rose to $576 million ($0.25/share) in Q3 2022, from $495 million ($0.22/share) in Q3 2021.
  • 3Year-to-date Net Income Attributable to Kinder Morgan, Inc. significantly increased to $1.878 billion for the nine months ended September 29, 2022, compared to $1.147 billion for the same period in 2021.
  • 4Segment EBDA increased to $1.847 billion for the quarter, up from $1.727 billion in the prior year, driven by strong performance in Natural Gas Pipelines and CO2 segments.
  • 5The company completed strategic acquisitions in renewable natural gas (Mas CanAm and NANR), aligning with its energy transition initiatives.
  • 6Kinder Morgan reaffirmed its expected dividend for 2022, projecting $1.11 per share, a 3% increase from 2021.
  • 7The company had $3.9 billion in availability under its credit facilities as of September 30, 2022, indicating strong liquidity.

Frequently Asked Questions

Kinder Morgan reported a strong third quarter of 2022 with Total Revenues of $5.177 billion, an increase from $3.824 billion in the third quarter of 2021. Net Income Attributable to Kinder Morgan, Inc. also rose to $576 million, or $0.25 per share, compared to $495 million, or $0.22 per share, in the prior year's third quarter. This improvement was primarily driven by higher earnings from the Natural Gas Pipelines and CO2 business segments.

For the nine months ended September 29, 2022, Kinder Morgan's Net Income Attributable to Kinder Morgan, Inc. significantly increased to $1.878 billion from $1.147 billion in the same period of 2021. This substantial growth was largely influenced by the absence of a significant impairment loss that occurred in the prior year, coupled with improved operational performance across its segments, particularly Products Pipelines.

Kinder Morgan continues to prioritize returning capital to shareholders through dividends, with an expected 2022 dividend of $1.11 per share. They are also strategically investing in acquisitions within the renewable natural gas sector, such as the Mas CanAm and NANR acquisitions, to align with energy transition opportunities. The company also focuses on managing its debt and maintaining a strong liquidity position, with $3.9 billion in borrowing capacity available.

Kinder Morgan is involved in various legal and environmental matters, including litigation and environmental cleanup obligations. However, the company states in its filing that it believes the ultimate resolution of these matters will not have a material adverse impact on its business. Reserves have been established for potential losses where probable and estimable.