Kinder Morgan(US:KMI)2024-07-19 20:07Acquisitions 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].