10-QPeriod: Q1 FY2024

KINDER MORGAN, INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 19, 2024For Securities:KMIEP-PC

Summary

Kinder Morgan, Inc. (KMI) reported solid financial results for the first quarter of 2024, with net income attributable to Kinder Morgan, Inc. increasing by 10% year-over-year to $746 million, or $0.33 per diluted share. This growth was primarily driven by increased services revenues, boosted by the acquisition of STX Midstream assets and expansion projects, which offset a slight decline in commodity sales revenues due to lower commodity prices. The company demonstrated strong operational cash flow generation, with Net Cash Provided by Operating Activities at $1,189 million. KMI also announced its expectation to declare dividends of $1.15 per share for 2024, a 2% increase from the prior year, underscoring its commitment to returning capital to shareholders. Despite some increases in operating expenses, particularly in operations and maintenance, the company maintained its financial discipline and compliance with debt covenants, positioning it for continued stability and growth.

Financial Highlights

48 data points
Beta

Revenue

$3.84B

Net Income

$746.00M

19.4% Net Margin

EPS (Diluted)

$0.33

Total Assets

$70.74B

Cash & Equivalents

$119.00M

Free Cash Flow

$570.00M

Financial Statements
Beta
Revenue$3.84B
Operating Expenses$2.62B
Operating Income$1.22B
Net Income$746.00M
EPS (Basic)$0.33
EPS (Diluted)$0.33
Shares Outstanding (Basic)2.22B
Shares Outstanding (Diluted)2.22B

Key Highlights

  • 1Net Income Attributable to Kinder Morgan, Inc. increased 10% to $746 million ($0.33 per diluted share) compared to the first quarter of 2023.
  • 2Total Revenues decreased slightly by 1% to $3.84 billion, primarily due to lower commodity sales, offset by higher services revenues from acquisitions and expansions.
  • 3Net Cash Provided by Operating Activities remained strong at $1.19 billion.
  • 4The company expects to declare 2024 dividends of $1.15 per share, a 2% increase from 2023.
  • 5Total debt stood at approximately $32.1 billion, with a reported Net Debt of $31.3 billion. The company remained in compliance with all required debt covenants.
  • 6Capital expenditures for the quarter were $619 million, with a full-year 2024 expectation of $3.0 billion, primarily for sustaining and expansion projects.
  • 7Segment EBDA increased by 6% to $2.23 billion, driven by strong performance in Natural Gas Pipelines and Products Pipelines segments.

Frequently Asked Questions

The primary driver for the 10% increase in net income attributable to Kinder Morgan, Inc. to $746 million in Q1 2024 was a rise in services revenues, largely due to the acquisition of STX Midstream assets and contributions from expansion projects. This growth effectively counteracted a decrease in commodity sales revenues, which were impacted by lower commodity prices.

Kinder Morgan reported total debt of approximately $32.1 billion and Net Debt of $31.3 billion as of March 31, 2024. The company stated that it was in compliance with all required debt covenants during the period. The company also actively manages its debt through issuances and repayments, including recent senior note issuances totaling $2.23 billion, to manage its capital structure.

Kinder Morgan expects to declare dividends of $1.15 per share for 2024, which represents a 2% increase compared to the $1.13 per share declared in 2023. This indicates a continued commitment to returning capital to shareholders.

The STX Midstream acquisition, completed in December 2023, contributed to higher services revenues in the first quarter of 2024. This acquisition, along with other expansion projects, helped to offset lower commodity sales revenues.