Kinder Morgan (KMI) Q3 2024 earnings summary

Executive summary

• Net income attributable to shareholders rose 17% year-over-year to $625 million for Q3 2024, with EPS at $0.28 and Adjusted EPS flat at $0.25; DCF per share was $0.49, flat year-over-year.

• Revenues for Q3 2024 were $3.70 billion, down 5% year-over-year, mainly due to lower commodity prices and volumes.

• Project backlog increased 34% year-over-year to $5.1 billion, with 86% devoted to lower-carbon energy investments.

• Declared quarterly dividend increased 2% to $0.2875 per share; full-year 2024 dividend expected at $1.15 per share.

• Major infrastructure projects and acquisitions, including the Gulf Coast Express Pipeline expansion and North McElroy Unit acquisition, are advancing.

Financial highlights

• Operating income for Q3 2024 increased 8% year-over-year to $1.02 billion; Adjusted EBITDA for Q3 was $1,880 million, up 2% year-over-year.

• Adjusted Net Income for Q3 was $557 million, down slightly from Q3 2023; DCF for Q3 was $1.10 billion, flat year-over-year.

• Cash flow from operations for the nine months was $4,125 million; free cash flow for Q3 was $592 million.

• Capital investments for the nine months totaled $2,180 million, with $694 million in sustaining and $1,183 million in expansion capital expenditures.

• Dividend increased 2% year-over-year.

Outlook and guidance

• Full-year adjusted EBITDA expected to be 5% higher and adjusted EPS 9% higher than 2023, though both are 2% and 4% below budget, respectively.

• 2024 net income guidance is $2.7 billion ($1.22 per share), DCF guidance is $5 billion ($2.26 per share), and Adjusted EBITDA $8.16 billion.

• CapEx guidance remains at roughly $2 billion per year, with potential to exceed depending on project timing.

• Sustaining capital for the year expected to be in line with budget.

• Anticipates continued growth in natural gas demand, with internal estimates of 25 BCF/day market growth over five years.