Why Is Kinder Morgan (KMI) Up 7.8% Since Last Earnings Report?

Core Insights - Kinder Morgan's Q3 2024 earnings report showed adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 27 cents, with total revenues of $3.7 billion also falling short of the expected $3.8 billion [2] - The company announced a quarterly cash dividend of 28.75 cents per share, reflecting a 2% increase from Q3 2023 [3] - Despite lower commodity prices impacting performance, Kinder Morgan projects a net income of $2.7 billion for 2024, a 15% increase from 2023, along with a 2% increase in dividends [10][11] Financial Performance - Q3 2024 adjusted earnings per share were flat year over year, while total revenues decreased from $3.9 billion in the prior-year quarter [2] - Distributable Cash Flow (DCF) remained stable at $1.09 billion compared to the same quarter last year [8] - As of September 30, 2024, Kinder Morgan reported $108 million in cash and cash equivalents and long-term debt of $29.8 billion [9] Segment Analysis - Natural Gas Pipelines segment saw adjusted EBDA increase to $1.28 billion from $1.19 billion year over year, driven by contributions from the Texas Intrastate system and STX Midstream acquisition [4] - Product Pipelines segment's EBDA decreased to $277 million from $313 million due to lower commodity prices [5] - Terminals segment generated EBDA of $267 million, up from $259 million, benefiting from liquid terminal expansions and increased volumes [6] Operational Highlights - Total operating costs and expenses decreased to $2,684 million from $2,969 million, while operations and maintenance expenses rose to $790 million from $738 million year over year [7] Guidance and Outlook - For 2024, Kinder Morgan expects Adjusted EBITDA of $8.16 billion and DCF of $5 billion, both reflecting an 8% year-over-year increase [10] - Adjusted EBITDA and Adjusted EPS are now projected to be about 2% and 4% below budget due to lower commodity prices and delays in RNG facilities [11] - The company holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [14]