Financial Data and Key Metrics Changes - The company expects its expansion capital program to be around $2 billion, with potential variations between $2 billion and $2.4 billion, indicating a stable financial outlook for future investments [49] - Current leverage is around four times, with expectations for it to drift lower over time as new projects come online, creating capacity for further share repurchases [51] Business Line Data and Key Metrics Changes - Kinder Morgan moves 40% of U.S. natural gas and serves about 20% of the power demand across the U.S., with 40% of the power demand within the Texas market, highlighting its significant market position [7] - The company has signed 1.2 Bcf per day of commitments for the Southern Natural Gas expansion project, which is a three Bcf per day project, indicating strong demand in the Southeast markets [11] Market Data and Key Metrics Changes - Wood Mackenzie projects natural gas demand to grow from 108 Bcf per day to 128 Bcf per day by 2030, with significant contributions expected from LNG and exports to Mexico [12] - The peak power demand in Texas increased from 70 gigawatts in 2018 to 86 gigawatts in 2023, reflecting a 16 gigawatt increase and indicating robust growth in power demand [6] Company Strategy and Development Direction - The company is focusing on expanding its natural gas infrastructure to meet increasing power demand driven by population migration and industrial growth in states like Texas and Arizona [4] - Kinder Morgan is also investing in renewable diesel and RNG assets, with ongoing projects aimed at enhancing its renewable fuel infrastructure [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of power demand, particularly from data centers and AI, and believes that the overall power demand is underestimated by some analysts [13][15] - The company is optimistic about the regulatory environment, noting recent positive rulings that could facilitate future projects [33][34] Other Important Information - The company has completed a 5 Bcf storage project and is looking at additional storage opportunities, indicating a proactive approach to increasing storage capacity amid growing market volatility [30] - The company is exploring both brownfield and greenfield storage projects, with expectations that greenfield storage will become viable as storage rates remain high [31] Q&A Session Summary Question: Can you provide insights on the macro backdrop for natural gas demand? - Management highlighted ongoing commercial discussions related to over five Bcf per day of opportunities, with 1.6 Bcf per day specifically tied to data center demand [2][3] Question: What is the status of the Southern Natural Gas expansion? - The company confirmed binding commitments of 1.2 Bcf per day for the expansion project, with an expected in-service date in late 2028 [11] Question: How does the company view the supply picture in the near and long term? - Management provided projections for supply growth from various regions, indicating a strong position to meet demand, particularly from the Eagle Ford and Permian basins [18][20] Question: What are the expectations regarding regulatory developments? - Management noted positive recent rulings and expressed optimism about navigating the regulatory landscape effectively [33][34] Question: Can you update on the renewable diesel and RNG projects? - The company reported progress in renewable diesel capacity and ongoing challenges in ramping up RNG facilities, with expectations for improved performance in the near future [44][46]

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It has been about a month since the last earnings report for Kinder Morgan (KMI) . Shares have added about 0.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Kinder Morgan due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Kinder Morgan Q2 Earnings Rise Y/YKinder Mor ...

Kinder Morgan (KMI) , North America's leading midstream energy company, boasts a stable business model, largely driven by take-or-pay contracts. Unlike upstream and downstream players, KMI's operations are minimally impacted by commodity price volatility, making it an appealing option for risk-averse investors.The critical question now facing investors is how to position themselves regarding the stock. Before addressing this, let's review some fundamental aspects of the large energy infrastructure firm.Take ...

Dmitri Kalvan Introduction In June, I wrote an article titled "Here Are 4 Fantastic Dividends Yielding 6% To Avoid The 'Cash Trap.'" In that article, I explained that dividend stocks could benefit from trillions of new inflows if the Fed were to lower rates. As most of you may know, because of aggressive interest rate hikes after the pandemic, investors were suddenly able to park their money in low-risk, high-yield investments like short-term bonds. As of June 18, assets in money market funds had ballooned ...

Leading energy companies have improved their balance sheets and are raising their dividends.The stock market is driven by earnings growth in the longer term. But in the short term, investor sentiment and prevailing themes can capture the spotlight.Over the last year or two, some of the major catalysts driving the market higher have included the prospect of lower inflation, lower interest rates, and accelerated growth in the tech sector.Investors looking for different ideas have come to the right place. The ...

Acquisitions and Divestitures - The company acquired the North McElroy Unit for $60 million, which currently produces approximately 1,250 Bbl/d of crude oil, and may be a candidate for CO2 flooding[115]. - The company divested its interests in several assets for a total of $68 million, including $25 million from CO assets and $43 million from Oklahoma midstream assets[115]. - The company sold its Oklahoma midstream assets, consisting of its Oklahoma system and Cedar Cove, for $43 million in February 2024[115]. - The company reported a gain on divestitures of $45 million for the three months ended June 30, 2024, compared to $13 million in the prior year, representing a 246% increase[132]. - The company reported a gain on divestitures of $29 million for the six-month period ended June 30, 2024, compared to a gain of $9 million in the same period of 2023[151]. Financial Performance - The net income attributable to Kinder Morgan, Inc. for the three months ended June 30, 2024, was impacted by certain items totaling $(27) million[122]. - Revenues increased by $71 million (2%) for the three months ended June 30, 2024, and by $25 million for the six months ended June 30, 2024, compared to the prior year periods, primarily due to higher services revenues[132][135]. - Operating income for the three months ended June 30, 2024, was $1,038 million, an increase of $8 million (1%) compared to the same period in 2023[132]. - Net income attributable to Kinder Morgan, Inc. for the three months ended June 30, 2024, was $575 million, a decrease of $11 million (2%) from $586 million in the prior year[132]. - Basic and diluted earnings per share remained unchanged at $0.26 for the three months ended June 30, 2024[132]. - Adjusted net income attributable to Kinder Morgan, Inc. for the three months ended June 30, 2024, was $548 million, compared to $540 million in the prior year[141]. - Net income attributable to Kinder Morgan, Inc. for Q2 2024 was $575 million, compared to $586 million in Q2 2023, reflecting a decrease of 1.9%[142]. - Adjusted Net Income attributable to common stock for Q2 2024 was $545 million, up from $537 million in Q2 2023, representing an increase of 1.5%[142]. Cash Flow and Dividends - The company expects to declare dividends of $1.15 per share for 2024, a 2% increase from the 2023 declared dividends of $1.13 per share[116]. - DCF (Distributable Cash Flow) for Q2 2024 was $1,100 million, an increase of $24 million or 2.2% compared to $1,076 million in Q2 2023[146]. - The board declared a quarterly dividend of $0.2875 per share for Q2 2024, a 2% increase from Q2 2023[179]. - The company expects to declare dividends of $1.15 per share for 2024, with quarterly dividends of $0.2875 per share[200]. Operational Metrics - Operating costs decreased by $63 million for the three months ended June 30, 2024, primarily due to lower costs of sales for products[137]. - Operations and maintenance expenses increased by $56 million for the three months ended June 30, 2024, driven by higher labor and fuel costs[138]. - Interest expense, net increased by $21 million for the three months ended June 30, 2024, due to higher average short-term debt balances[139]. - Total oil production net decreased to 26.05 MBbl/d for the three months ended June 30, 2024, down from 29.91 MBbl/d in the prior year[170]. - Realized weighted average oil price increased to $69.47 per Bbl for the three months ended June 30, 2024, compared to $67.73 per Bbl in the prior year[170]. Segment Performance - Natural Gas Pipelines Segment EBDA for Q2 2024 was $1,227 million, a decrease of $28 million (2%) compared to Q2 2023, while the six-month EBDA was $2,741 million, down $9 million (0.3%) year-over-year[151]. - Adjusted Segment EBDA for Natural Gas Pipelines increased by $30 million (2.5%) to $1,231 million in Q2 2024, and by $124 million (4.7%) to $2,755 million for the six-month period[152]. - Products Pipelines Segment EBDA for Q2 2024 was $301 million, an increase of $16 million (5.6%) from Q2 2023, and $593 million for the six-month period, up $124 million (20.9%) year-over-year[159]. - The Products Pipelines segment reported revenues of $776 million in Q2 2024, compared to $735 million in Q2 2023, reflecting a growth of 5.6%[159]. - Total Products Pipelines segment EBDA increased to $301 million for the three months ended June 30, 2024, compared to $285 million in the prior year[162]. - Terminals segment EBDA increased by $20 million (8%) for the three months ended June 30, 2024, reaching $281 million, driven by expansion projects and higher volumes[166]. - Liquids segment EBDA increased by $17 million (12%) for the three months ended June 30, 2024, primarily due to increased revenues from expansion projects and higher utilization rates[169]. - CO Segment EBDA for the three months ended June 30, 2024, was $206 million, a 17% increase from $175 million in the same period of 2023[172]. - Oil and Gas Producing activities saw a $10 million (7%) increase in EBDA for the three months ended June 30, 2024, attributed to a $41 million gain on sale of oil and gas fields[172]. - Source and Transportation activities experienced a $9 million (23%) increase in EBDA for the three months ended June 30, 2024, primarily due to higher revenues from the Wink Pipeline[173]. - Energy Transition Ventures reported a $12 million (1,200%) increase in EBDA for the three months ended June 30, 2024, driven by higher RIN sales margins[173]. Capital Expenditures and Investments - The company plans to invest $2.15 billion in expansion projects, acquisitions, and contributions to joint ventures during 2024[116]. - Total capital investments for 2024 are projected to be $3,330 million, including $1,347 million in sustaining capital expenditures and $1,983 million in expansion capital expenditures[189]. - Total capital investments for 2024 amounted to $3,330 million, with sustaining capital investments at $1,178 million and expansion capital investments at $2,152 million[190]. - Cash used in investing activities increased by $86 million, primarily due to a $158 million rise in capital expenditures for expansion projects in the Natural Gas Pipelines segment[198]. Debt and Liabilities - Net debt as of June 30, 2024, was calculated at $31,711 million, after accounting for cash and cash equivalents of $98 million and other adjustments[130]. - Approximately $6,125 million (19%) of the company's debt was subject to variable interest rates as of June 30, 2024[178]. - As of June 30, 2024, the Obligated Group had $30,873 million of Guaranteed Notes outstanding, a slight decrease from $31,167 million at the end of 2023[206]. - Total liabilities as of June 30, 2024, were $40,468 million, compared to $40,628 million at the end of 2023[207]. Regulatory and Compliance - The estimated costs to comply with the EPA's "Good Neighbor Plan" could range from $1.5 billion to $1.8 billion, significantly impacting operations if fully implemented[194]. - There have been no material changes in market risk exposures as of December 31, 2023[209]. - The company continues to focus on risk management activities as detailed in the consolidated financial statements[209].

Kinder Morgan TodayKMIKinder Morgan$21.05 +0.52 (+2.53%) 52-Week Range$15.89▼$21.45Dividend Yield5.46%P/E Ratio19.14Price Target$21.29Add to WatchlistKinder Morgan NYSE: KMI has what it takes to deliver attractive value to investors. It is a steady energy business supported by rising demand with stable, visible cash flows that allow it to pay a substantial dividend. The payout is worth nearly 5.5% annually and is sustainable, as is annualized dividend distribution growth. The caveat is that the Q2 results h ...

Kinder Morgan's growth engine is shifting into a higher gear.Kinder Morgan (KMI 2.53%) has struggled to grow in recent years. The natural gas pipeline giant's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $7.5 billion last year, about the same level as it was in 2018. While the company's financial results were very stable during that period, its earnings didn't grow. However, the pipeline company reached an inflection point this year (it expects to generate about $8. ...

Kinder Morgan, Inc. (NYSE:KMI) Q2 2024 Earnings Call Transcript July 17, 2024 4:30 PM ET Company Participants Rich Kinder - Executive Chairman Kim Dang - CEO Tom Martin - President David Michels - VP and CFO Sital Mody - President, Natural Gas Pipelines Anthony Ashley - President, CO2 & Energy Transition Ventures Conference Call Participants Manav Gupta - UBS John Mackay - Goldman Sachs Keith Stanley - Wolfe Research Jeremy Tonet - JPMorgan Theresa Chen - Barclays Spiro Dounis - Citi Michael Blum - Wells Fa ...