HOUSTON - Kinder Morgan , Inc. (NYSE: NYSE:KMI) reported first-quarter earnings per share (EPS) of $0.33, falling slightly short of analyst expectations by $0.01.
The energy infrastructure company's revenue for the quarter was $3.84 billion, which did not meet the consensus estimate of $4.48 billion. Despite the revenue miss, the stock saw a marginal increase of +0.1% following the earnings release.
The company's first-quarter net income attributable to KMI was $746 million, a 10% increase compared to $679 million in the same quarter last year. Distributable cash flow (DCF) per share also saw a rise of 5% year-over-year (YoY), coming in at $0.64. Kinder Morgan's board approved a cash dividend of $0.2875 per share for the first quarter, marking a 2% increase over the first quarter of 2023.
For the full year 2024, Kinder Morgan has set a budget that includes net income attributable to KMI of $2.7 billion, or $1.22 per share, which is a 15% increase compared to 2023. The company also forecasts dividends of $1.15 per share for 2024, a modest 2% rise from the previous year. Additionally, the budgeted DCF is $5 billion ($2.26 per share) and Adjusted EBITDA is $8.16 billion, both 8% higher YoY. Kinder Morgan aims to close the year with a Net Debt-to-Adjusted EBITDA ratio of 3.9 times.
CEO Kim Dang attributed the strong start to the quarter to increased financial contributions from the company's Natural Gas Pipelines, Products Pipelines, and Terminals business segments. Dang also highlighted that despite the current low natural gas price environment, the company's outlook remains positive with expected growth in natural gas demand.
Executive Chairman Richard D. Kinder emphasized the company's role in providing energy security, particularly in light of the ongoing conflict in Ukraine and the Middle East. He expressed pride in Kinder Morgan's commitment to delivering energy from stable countries that respect the rule of law.
Kinder Morgan's capital projects are expected to contribute to its growth, with a backlog of $3.3 billion at the end of the first quarter, up from $3 billion at the end of 2023.
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