Early Access

10-QPeriod: Q1 FY2023

KINDER MORGAN, INC. Quarterly Report for Q1 Ended Mar 31, 2023

Filed April 21, 2023For Securities:KMIEP-PC

Summary

Kinder Morgan, Inc. (KMI) reported a modest increase in net income attributable to the company for the first quarter of 2023, reaching $679 million compared to $667 million in the prior year period. This growth was driven by higher operating income, which benefited from a significant decrease in costs of sales, largely due to lower commodity prices and volumes. Despite a decrease in total revenues, primarily from reduced commodity sales, KMI demonstrated improved operational efficiency. The company's financial position remains robust with substantial cash flows from operations, totaling $1.33 billion for the quarter. KMI also reaffirmed its commitment to shareholder returns by planning a 2% increase in its 2023 dividend to $1.13 per share and continuing its share repurchase program. However, investors should note an increase in interest expenses driven by higher SOFR rates and changes in interest rate swaps. The company continues to manage its commodity and interest rate risks through various hedging strategies.

Financial Highlights

47 data points
Beta

Revenue

$3.89B

Net Income

$679.00M

0.2% Net Margin

EPS (Diluted)

$0.30

Total Assets

$68.93B

Cash & Equivalents

$416.00M

Free Cash Flow

$826.00M

Financial Statements
Beta
Revenue$3.89B
Operating Expenses$2.69B
Operating Income$1.19B
Net Income$679.00M
EPS (Basic)$0.30
EPS (Diluted)$0.30
Shares Outstanding (Basic)2.25B
Shares Outstanding (Diluted)2.25B

Key Highlights

  • 1Net income attributable to Kinder Morgan, Inc. increased by 1.8% to $679 million in Q1 2023 from $667 million in Q1 2022.
  • 2Total revenues decreased by 9.4% to $3.89 billion, primarily due to lower commodity sales, though operating income rose 16.6% to $1.19 billion.
  • 3Costs of sales saw a significant reduction of 35.7% to $1.22 billion, largely attributed to lower commodity prices and volumes.
  • 4Cash flow from operating activities increased by 23.0% to $1.33 billion, demonstrating strong operational cash generation.
  • 5The company announced a planned 2% increase in its 2023 dividend to $1.13 per share, and repurchased $113 million of its stock during the quarter.
  • 6Interest expense, net, increased by 33.6% to $445 million, primarily due to higher SOFR rates and changes in fair value of interest rate swaps.
  • 7The Natural Gas Pipelines segment was the primary driver of growth, with Segment EBDA increasing 26.2% to $1.50 billion.

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