After years of lagging the market, Kinder Morgan stock has shot up to a nine-year high. Kinder Morgan (KMI 0.52%) is up over 41% year to date, crushing the performance of the S&P 500 and the broader energy sector. The run-up in the stock price has taken the energy company's shares to their highest level since 2015. It has also pushed Kinder Morgan's dividend yield down to 4.6% -- but that's still a much higher yield than investors can get from an energy sector exchange-traded fund. Let's dive into the pipel ...

Investing in a 50/50 split of these two dividend stocks produces a yield of 4.7%.Companies with high dividend yields have a much better chance of providing investors with predictable income regardless of what the broader stock market is doing. The key, of course, is to stick with companies that can afford their payouts. After all, a dividend expense is only as good as the company paying it.And companies that don't have a runway for future earnings growth won't be able to raise their dividend without jeopard ...

Kinder Morgan is excited about what it sees ahead.Kinder Morgan's (KMI 0.52%) co-founder and executive chair, Richard Kinder, knows the natural gas midstream space as well as anybody. He's helped build the company into the country's leader in natural gas infrastructure. Kinder Morgan operates 60,000 miles of gas pipelines (which move 40% of the country's gas production) and has interests in 702 billion cubic feet of working gas storage capacity (15% of the country's total). He's played a role in developing ...

Acquisitions and Divestitures - The company acquired the North McElroy Unit for $60 million, which currently produces approximately 1,250 Bbl/d of crude oil[117]. - The company divested its Oklahoma midstream assets for $43 million in February 2024[117]. - The company sold CO assets for $19 million in June 2024, which included interests in multiple units located in the Permian Basin[117]. - The company reported a gain on divestitures of $29 million for the nine months ended September 30, 2024, compared to $9 million in the prior year[154]. Financial Performance - Revenues for the three months ended September 30, 2024, decreased by $208 million (5%) to $3,699 million compared to $3,907 million in 2023[133]. - Operating income increased by $77 million (8%) to $1,015 million for the three months ended September 30, 2024, compared to $938 million in 2023[133]. - Net income attributable to Kinder Morgan, Inc. increased by $93 million (17%) to $625 million for the three months ended September 30, 2024, compared to $532 million in 2023[133]. - Net income for the nine months ended September 30, 2024, increased by $158 million (8%) to $2,026 million compared to $1,868 million in 2023[135]. - Total revenues for the three months ended September 30, 2024, were $2,176 million, a decrease from $2,273 million in the prior year[154]. - Revenues for the three months ended September 30, 2024, were $711 million, a decrease of 17.5% from $862 million in the same period of 2023[162]. - Revenues for the three months ended September 30, 2024, were $3,328 million, with operating income of $880 million and net income of $509 million[213]. Cash Flow and Capital Expenditures - The company generated cash flows from operations of $4,125 million in the first nine months of 2024, slightly down from $4,169 million in the same period of 2023[180]. - Cash used in investing activities increased by $125 million, primarily due to a $168 million rise in capital expenditures driven by expansion projects in the Natural Gas Pipelines business segment[202]. - Cash used in financing activities decreased by $903 million, attributed to a $531 million reduction in cash related to debt activity and a $383 million decrease in cash used for share repurchases[203]. - Sustaining capital expenditures for 2024 are projected to be $1,012 million, while expansion capital expenditures are expected to be $1,748 million, totaling $2,760 million in capital expenditures[191]. - The company anticipates total capital investments of $3,144 million for 2024, which includes $1,166 million in sustaining capital investments and $1,978 million in expansion capital investments[192]. 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[118]. - Declared dividends per share increased by $0.005 (2%) to $0.2875 for the three months ended September 30, 2024, compared to $0.2825 in 2023[133]. - The board of directors declared a quarterly dividend of $0.2875 per share for Q3 2024, a 2% increase over the dividend declared for Q3 2023[182]. - The company’s dividends are not cumulative, meaning unpaid dividends do not accumulate for future payments[207]. - The board of directors will consider various factors, including financial condition and liquidity requirements, when declaring dividends[206]. Debt and Liabilities - Net debt as of September 30, 2024, was calculated at $31,689 million after accounting for cash and cash equivalents, debt fair value adjustments, and foreign exchange impacts[131]. - As of September 30, 2024, the Obligated Group had $31,067 million of Guaranteed Notes outstanding, a slight decrease from $31,167 million as of December 31, 2023[211]. - Total liabilities for the Obligated Group were $40,650 million as of September 30, 2024, compared to $40,628 million at the end of 2023[212]. - Current liabilities decreased from $6,907 million at the end of 2023 to $4,360 million as of September 30, 2024[212]. Operational Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $1,880 million, an increase from $1,835 million in the same period of 2023[146]. - The company reported a DCF (Distributable Cash Flow) of $1,096 million for the three months ended September 30, 2024, compared to $1,094 million for the same period in 2023[146]. - Total oil production for the three months ended September 30, 2024, was 25.92 MBbl/d, down from 27.67 MBbl/d in the same period of 2023, representing a decrease of 6%[174]. - Realized weighted average oil price for the three months ended September 30, 2024, was $68.42 per Bbl, compared to $67.60 per Bbl in the same period of 2023, an increase of 1.2%[174]. Segment Performance - Adjusted Segment EBDA provides insight into performance trends across business segments and is used for resource allocation and performance assessment[128]. - Natural Gas Pipelines Segment EBDA increased by $115 million (10%) for the three months and $106 million (3%) for the nine months ended September 30, 2024, compared to the prior year[155]. - Midstream's revenue increased by $113 million (35%) for the three months and $75 million (6%) for the nine months ended September 30, 2024, attributed to non-cash mark-to-market derivative contracts and a gain on asset sales[157]. - Segment EBDA for the Products Pipelines decreased by $33 million (10.6%) to $278 million for the three months ended September 30, 2024, compared to $311 million in 2023[164]. - The Crude and Condensate segment experienced a $27 million (30%) decrease in EBDA for the three months ended September 30, 2024, primarily due to a $67 million non-cash impairment in the previous year[164]. - Southeast Refined Products saw a $21 million (26%) decrease in EBDA for the three months ended September 30, 2024, driven by unfavorable commodity pricing[165]. - West Coast Refined Products reported a $15 million (11%) increase in EBDA for the three months ended September 30, 2024, attributed to higher transportation rates and volumes[165]. Regulatory and Compliance - The estimated costs necessary to comply with the EPA's "Good Neighbor Plan" could range from $1.5 billion to $1.8 billion, which may significantly impact the company's operations[197]. - The company has budgeted for sustaining capital expenditures on a bottom-up basis to maintain safe and efficient operations, with additional expenditures expected to produce economic benefits[188]. - The classification of capital expenditures as sustaining or expansion affects the discounted cash flow (DCF) calculations, as expansion capital expenditures are not deducted in DCF calculations[189]. Market and Risk Exposure - There have been no material changes in market risk exposures since December 31, 2023[214].

Kinder Morgan is a great option for those seeking a sustainable and steadily rising stream of dividend income. Kinder Morgan (KMI -0.44%) stands out for its high dividend yield of nearly 5%, which is one of the highest yields in the S&P 500. However, unlike some high-yield dividend stocks, the company's big-time payout is on a very sustainable foundation. That view was abundantly clear when reviewing Kinder Morgan's recent third-quarter earnings report. The pipeline company produces very stable earnings tha ...

Financial Data and Key Metrics - Earnings per share (EPS) remained unchanged in Q3 2024 compared to Q3 2023 [9] - EBITDA grew by 2% in Q3 2024 versus Q3 2023, with full-year 2024 EBITDA growth expected at 5% and EPS growth at 9% [9] - Debt-to-EBITDA ratio remained stable at 4.1x [9] - Revenue for Q3 2024 was $3.7 billion, down $208 million from Q3 2023, but gross margin increased by 7% due to a $381 million reduction in cost of sales [17] - Net income attributable to KMI was $625 million, up 17% from Q3 2023, with adjusted net income of $557 million and adjusted EPS of $0.25, flat with last year [17] - DCF per share was $0.49, flat with last year [18] Business Line Data and Key Metrics - Natural gas transport volumes increased by 2% in Q3 2024 versus Q3 2023, with gathering volumes up 5% driven by Haynesville and Eagle Ford, which saw 10% and 9% increases respectively [13] - Products Pipeline segment saw a 1% increase in Refined Products volumes but a 4% decline in Crude and Condensate volumes in Q3 2024 compared to Q3 2023 [14] - Terminals business segment maintained high liquids lease capacity at 95%, with Jones Act tankers 100% leased through 2024 and 97% leased in 2025 [15] - CO2 segment experienced a 6% decline in oil production volumes, a 3% decline in NGL volumes, and a 3% increase in CO2 volumes in Q3 2024 versus Q3 2023 [16] Market Data and Key Metrics - The company expects significant growth in natural gas demand driven by LNG exports, exports to Mexico, and power generation, with an internal estimate of 25 Bcf/day growth over the next five years [10] - The Southeastern US market is seeing increased demand for natural gas due to population and business migration, the CHIPS Act, and data center growth [10] - The company announced a $3 billion South System Expansion 4 Project to increase Southern Natural Gas South Line capacity by 1.2 Bcf/day, targeting the Southeastern US market [7] Company Strategy and Industry Competition - The company is focused on expanding its natural gas infrastructure to meet growing demand, with a backlog of $5.1 billion in projects, up 34% from $3.8 billion in Q3 2023 [28] - Key projects include the South System Expansion 4 Project and the GCX expansion, with additional significant projects expected to be announced in the coming months [7][12] - The company sees large opportunities in natural gas infrastructure, particularly in LNG, exports to Mexico, and power generation, with potential projects ranging from $1.5 billion to $2 billion [12] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong demand for natural gas driven by AI, data centers, and industrial growth, with significant opportunities for infrastructure build-out [6][10] - The company expects to grow EPS, EBITDA, and DCF on a consistent and sustainable basis as new projects come online [8] - Management noted that while some projects may take longer to develop, the overall opportunity set has increased significantly over the past year [12] Other Important Information - The company declared a dividend of $0.2875 per share for Q3 2024, up 2% from 2023 [17] - The company ended Q3 2024 with $31.7 billion in net debt, a $150 million decrease from the beginning of the year, driven by $4.2 billion in cash flow from operations and $2 billion in total CapEx [20] Q&A Session Summary Question: Growth potential and backlog size [22] - The company noted that the opportunity set for projects has increased significantly, with a backlog of $5.1 billion, up from $3.8 billion in Q3 2023 [23][28] - Projects range from smaller "singles and doubles" to larger projects like Mississippi Crossing and Trident, which are in competitive spaces [27] Question: Guidance and trends for 2025 [29] - Management expects natural gas transmission assets to continue performing well, offsetting some weakness in gathering volumes due to lower commodity prices [30] - The company anticipates stronger demand in the second half of 2025 as LNG export volumes come online [31] Question: CapEx trends and funding [34] - The company expects to maintain its $2 billion annual growth CapEx target, with potential for higher spending depending on project timing [36] - The company has the capacity to fund up to $2.5 billion in CapEx annually from cash flow and could leverage its balance sheet for additional funding if needed [37] Question: Expected returns on projects [38] - Management stated that returns on projects are consistent with historical targets, with no significant deviation in returns for larger projects like South System 4 [39] Question: Mississippi Crossing project and commercial drivers [40] - The project is driven by the need for incremental supply and diversification, particularly with the growth of LNG in the Gulf Coast [41] Question: Potential separation of products business [42] - Management believes the natural gas and products businesses are strategically aligned and sees no significant benefit in separating them at this time [43] Question: Cumberland project and permitting challenges [46] - The company is working to defend its permits for the Cumberland project, which is currently delayed due to a court stay [47] - Management noted that permitting challenges are not new and that the company has successfully defended permits in the past [48] Question: Gulf Coast Express expansion timeline [49] - The company expects the Gulf Coast Express expansion to take approximately 22 months, with a target in-service date of mid-2026 [50] Question: Demand risk in Agua Dulce area [52] - Management acknowledged potential pricing exposure if LNG demand is delayed but noted that long-term contracts and downstream optionality mitigate some risk [53][55] Question: Storage market rates [56] - The company expects continued strength in the storage market, with 25% of its storage on market-based rates and contracts rolling over a three-year period [58] Question: Backlog growth expectations [60] - Management expects the backlog to potentially grow further, with significant projects in the pipeline and ongoing opportunities for smaller projects [61] Question: CO2 portfolio and capital spend [62] - The company approved $150 million in CO2 projects this quarter, with annual expansion spending of around $200 million expected to continue [63][64] Question: Operating leverage and capacity [67] - The company has capacity in its gathering and transmission systems, with potential for expansion in areas like the Eagle Ford and Haynesville [68] Question: Power demand and upstream opportunities [69] - The company is exploring opportunities to provide gas directly to power plants, including potential behind-the-meter solutions, though no concrete plans are in place [70] Question: CapEx funding capacity [72] - The company is comfortable funding up to $2.5 billion in growth CapEx annually from cash flow and could leverage its balance sheet for additional funding if needed [73] Question: Permitting challenges post-Chevron decision [75] - Management does not see the Chevron decision as significantly impacting its permitting strategy and expects to continue defending permits as it has in the past [76]

Kinder Morgan (KMI) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.41%. A quarter ago, it was expected that this oil and natural gas pipeline and storage company would post earnings of $0.25 per share when it actually produced earnings of $0.25, delivering no surprise.Over the las ...

Financial Performance - Third quarter earnings per share (EPS) of $0.28, up 17% compared to the third quarter of 2023[2] - Net income attributable to KMI of $625 million, compared to $532 million in the third quarter of 2023[2] - Adjusted EBITDA of $1,880 million, up 2% from $1,835 million in the third quarter of 2023[2] - 2024 budgeted net income attributable to KMI of $2.7 billion, up 15% versus 2023, and Adjusted EBITDA of $8.16 billion, up 8% versus 2023[7] - Q3 2024 revenues decreased to $3.699 billion from $3.907 billion in Q3 2023, a decline of 5.3%[46] - Net income attributable to Kinder Morgan, Inc. increased by 17% to $625 million in Q3 2024 compared to $532 million in Q3 2023[46] - Adjusted EPS remained flat at $0.25 in Q3 2024 compared to Q3 2023[46] - Basic and diluted earnings per share increased by 17% to $0.28 in Q3 2024 from $0.24 in Q3 2023[46] - Adjusted Net Income Attributable to Kinder Morgan, Inc. slightly decreased by 1% to $557 million in Q3 2024 from $562 million in Q3 2023[46] - Net income attributable to Kinder Morgan, Inc. increased by 17% to $625 million for the three months ended September 30, 2024, compared to $532 million in the same period in 2023[52] - Adjusted EBITDA grew by 2% to $1.88 billion for the three months ended September 30, 2024, compared to $1.835 billion in the same period in 2023[52] - Net income attributable to Kinder Morgan, Inc. increased from $2,391 million in 2023 to $2,540 million in 2024[64] - Adjusted EBITDA increased from $7,561 million in 2023 to $7,801 million in 2024[64] - Net income attributable to Kinder Morgan, Inc. for the three months ended September 30, 2024, was $625 million, up from $532 million in the same period in 2023[67] Cash Flow and Capital Expenditures - Cash flow from operations of $1.2 billion and free cash flow (FCF) of $0.6 billion after capital expenditures[3] - DCF (Distributable Cash Flow) for Q3 2024 was $1.096 billion, unchanged from Q3 2023[49] - DCF per share remained flat at $0.49 in Q3 2024 compared to Q3 2023[49] - Free cash flow (FCF) for the nine months ended September 30, 2024, was $2,268 million, down from $2,480 million in the same period in 2023[67] - Capital expenditures (GAAP) for the nine months ended September 30, 2024, were $1,857 million, up from $1,689 million in the same period in 2023[67] - FCF after dividends for the nine months ended September 30, 2024, was $353 million, down from $582 million in the same period in 2023[67] Segment Performance - Natural Gas Pipelines Segment EBDA increased to $1.294 billion for the three months ended September 30, 2024, up from $1.179 billion in the same period in 2023[56] - Products Pipelines Segment EBDA decreased to $278 million for the three months ended September 30, 2024, down from $311 million in the same period in 2023[56] - Terminals Segment EBDA rose to $268 million for the three months ended September 30, 2024, compared to $259 million in the same period in 2023[56] - CO Segment EBDA increased to $170 million for the three months ended September 30, 2024, up from $163 million in the same period in 2023[56] - Natural Gas Pipelines transport volumes increased to 44,824 BBtu/d for the three months ended September 30, 2024, compared to 43,937 BBtu/d in the same period in 2023[59] - Total refined product volumes for Products Pipelines were 1,676 MBbl/d for the three months ended September 30, 2024, slightly up from 1,656 MBbl/d in the same period in 2023[59] - Liquids leased capacity percentage for Terminals increased to 94.9% for the three months ended September 30, 2024, compared to 94.6% in the same period in 2023[59] Investments and Projects - Final investment decision reached for a $455 million expansion on the Gulf Coast Express Pipeline, increasing natural gas deliveries by 570 MMcf/d[4] - Project backlog at the end of the third quarter was $5.1 billion, with 86% allocated to lower-carbon energy investments[6] - Construction ongoing for the $154 million South Texas to Houston Market expansion project, expected to provide 500 MMcf/d to key markets[19] - Autumn Hills RNG facility expected to be placed into service December 2024 with an annual capacity of 0.8 Bcf, bringing total RNG generation capacity to 6.9 Bcf per year[25] Certain Items and Adjustments - Total Certain Items for the three months ended September 30, 2024, were $(68) million, compared to $30 million in the same period in 2023[33] - Total Certain Items for the nine months ended September 30, 2024, were $(83) million, compared to $(20) million in the same period in 2023[33] - Change in fair value of derivative contracts for the three months ended September 30, 2024, was $(20) million, compared to $37 million in the same period in 2023[33] - Change in fair value of derivative contracts for the nine months ended September 30, 2024, was $32 million, compared to $(93) million in the same period in 2023[33] - (Gain) loss on divestitures and impairment, net for the nine months ended September 30, 2024, was $(70) million, compared to $67 million in the same period in 2023[33] - Income tax Certain Items for the three months ended September 30, 2024, were $(49) million, compared to $(7) million in the same period in 2023[33] - Income tax Certain Items for the nine months ended September 30, 2024, were $(48) million, compared to $6 million in the same period in 2023[33] - Adjusted Net Income Attributable to Kinder Morgan, Inc. is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items[33] - DCF (Distributable Cash Flow) is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items, DD&A, income tax expense, cash taxes, and sustaining capital expenditures[35] - Adjusted EBITDA is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items, DD&A, income tax expense, and interest[35] Dividends and Shares - Declared dividends per share increased by 2% to $0.2875 in Q3 2024 from $0.2825 in Q3 2023[46] - Weighted average shares outstanding for dividends decreased slightly to 2,235 million in Q3 2024 from 2,244 million in Q3 2023[49] Debt and Assets - Net Debt stood at $31.687 billion as of September 30, 2024, slightly down from $31.837 billion in the same period in 2023[61] - Total assets decreased slightly from $71,020 million in 2023 to $70,879 million in 2024[62] - Cash and cash equivalents increased from $83 million in 2023 to $108 million in 2024[62] - Long-term debt increased from $27,880 million in 2023 to $29,825 million in 2024[62] - Net Debt-to-Adjusted EBITDA ratio improved slightly from 4.2 in 2023 to 4.1 in 2024[63] Operating Costs and Expenses - Total operating costs, expenses, and other decreased to $2.684 billion in Q3 2024 from $2.969 billion in Q3 2023[46]

The world will need a lot more natural gas in the coming years.Natural gas demand is on track to grow sharply by 2030. The lower-carbon fuel is helping meet the accelerating demand for power in the U.S. and abroad, which is fueling robust and rising cash flows for natural gas-infrastructure operators, enabling them to pay attractive dividends and invest in expanding their operations. Kinder Morgan (KMI 4.13%) and Williams (WMB 2.04%) are two of the country's natural gas-infrastructure leaders. That makes th ...

Druckenmiller dumped shares of Nvidia in favor of two industry-leading businesses during the June-ended quarter.Important data releases aren't hard to come by on Wall Street. Monthly employment and inflation reports, coupled with earnings season (i.e., six weeks packed full of operating results from public companies), can make it easy for important data to fly under the radar.While most investors were focused on the heart of earnings season in mid-August, as well as the release of the July inflation report, ...