Strong Natural Gas Demand Boosts Kinder Morgan's Q3 Performance

Core Insights - Kinder Morgan reported a 16% increase in earnings per share, driven by strong natural gas demand in the third quarter [1] - The company’s net profits rose modestly to $628 million from $625 million year-over-year [2] Company Performance - Kinder Morgan's business model focuses on owning midstream energy assets supported by long-term, take-or-pay contracts with creditworthy customers, ensuring reliable performance and sustained value [3] - The company has long-term contracts for transporting nearly 8 billion cubic feet of natural gas to LNG plants on the Gulf Coast, expected to reach 1 billion cubic feet by the end of 2028 [3] Market Outlook - Total demand for natural gas is projected to grow by 20% through 2030, primarily driven by LNG exports [4] - Kinder Morgan is exploring over 10 billion cubic feet per day of opportunities in the natural gas power generation sector, with about half of its backlog in this area [4] - Natural gas constitutes 90% of Kinder Morgan's order backlog, which stood at $9.3 billion at the end of September [4] Industry Trends - LNG is currently the fastest-growing segment of the U.S. energy industry, with significant capacity expansion anticipated due to increasing global demand [5] - The Energy Information Administration forecasts that North America's total LNG capacity could more than double by 2029, driven by new liquefaction plants in the U.S., Canada, and Mexico [5]