Kinder Morgan's Q4 Review: Strong Cash Flow, New Projects, and Navigating Commodity Challenges
Earnings DecryptWednesday, Jan 22, 2025 9:12 pm ET
1min readFinancial Performance and Growth:
- Kinder Morgan reported $6.5 billion in cash flow from operations for the year, while spending $2.7 billion in capital expenditures.
- The company also declared a dividend of $0.2875 per share, up 2% from the previous year.
- The growth in financial performance was driven by greater contributions from the natural gas products and terminals businesses.
Natural Gas Demand and Infrastructure Development:
- The company announced FID on four new major projects, with projected capital expenditures exceeding $5 billion.
- These projects will have the capacity to transport over 5 Bcf a day of natural gas, supported by long-term contracts with creditworthy customers.
- The developments are driven by strong natural gas demand growth, especially in the Gulf Coast and Southeast regions.
Backlog Growth and Acquisition:
- Kinder Morgan added $6.3 billion in new expansion projects to the backlog for the year, primarily comprising Trident and MSX.
- The backlog now stands at $8.1 billion, with expectations to spend approximately $2.5 billion per year in expansion CapEx for several years.
- The company also completed the acquisition of a natural gas gathering and processing system in the Bakken for $640 million, which is expected to reduce future CapEx.
Challenges and Commodity Prices:
- The company experienced a 12% increase in EPS to $1.17, despite challenges related to lower commodity prices and lower production from RNG plants.
- Commodity prices, especially natural gas, are showing some upside this year compared to budgeted prices, contributing positively to performance.
- Kinder Morgan reported $6.5 billion in cash flow from operations for the year, while spending $2.7 billion in capital expenditures.
- The company also declared a dividend of $0.2875 per share, up 2% from the previous year.
- The growth in financial performance was driven by greater contributions from the natural gas products and terminals businesses.
Natural Gas Demand and Infrastructure Development:
- The company announced FID on four new major projects, with projected capital expenditures exceeding $5 billion.
- These projects will have the capacity to transport over 5 Bcf a day of natural gas, supported by long-term contracts with creditworthy customers.
- The developments are driven by strong natural gas demand growth, especially in the Gulf Coast and Southeast regions.
Backlog Growth and Acquisition:
- Kinder Morgan added $6.3 billion in new expansion projects to the backlog for the year, primarily comprising Trident and MSX.
- The backlog now stands at $8.1 billion, with expectations to spend approximately $2.5 billion per year in expansion CapEx for several years.
- The company also completed the acquisition of a natural gas gathering and processing system in the Bakken for $640 million, which is expected to reduce future CapEx.
Challenges and Commodity Prices:
- The company experienced a 12% increase in EPS to $1.17, despite challenges related to lower commodity prices and lower production from RNG plants.
- Commodity prices, especially natural gas, are showing some upside this year compared to budgeted prices, contributing positively to performance.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
Comments
No comments yet