Kinder Morgan(KMI) - 2024 Q3 - Quarterly Results

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]