Q3 2024 Kinder Morgan Inc Earnings Call Transcript
Key Points
- Kinder Morgan Inc (KMI) announced significant expansion projects, including the $3 billion South System Expansion 4 and the GCX system expansion in Texas, which are expected to boost capacity and meet growing demand.
- The company reported a 2% growth in EBITDA for the third quarter compared to the previous year, with expectations of a 5% increase for the full year.
- Transport volumes for natural gas increased by 2% in the quarter, with gathering volumes up 5%, driven by strong performance in the Haynesville and Eagle Ford regions.
- Kinder Morgan Inc (KMI) has a robust project backlog of $5.1 billion, indicating a strong pipeline of future growth opportunities.
- The company declared a dividend of $0.2875 per share, representing a 2% increase from the previous year, reflecting confidence in its financial stability.
- Earnings per share remained unchanged for the third quarter, indicating potential challenges in achieving higher profitability.
- The company experienced a decline in revenue by $208 million compared to the third quarter of 2023, although this was offset by a reduction in cost of sales.
- Gathering volumes are expected to average 8% below the 2024 plan, highlighting potential challenges in meeting production targets.
- The CO2 segment reported lower oil and NGL production volumes, which could impact overall segment performance.
- Kinder Morgan Inc (KMI) faces legal challenges, such as the stay on permits for the Cumberland project, which could delay construction and impact project timelines.
Welcome to the quarterly earnings conference call. (Operator Instructions) Today's call is being recorded. If you have any objections, please disconnect at this time.
I'll now turn the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan.
Okay. Thank you, Todd. Before we begin, as usual, I'd like to remind you that KMI's earnings release today and this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Act of 1934, as well as certain non-GAAP financial measures.
Before making any investment decisions, we strongly encourage you to read our full disclosure on forward-looking statements and use of non-GAAP financial measures set forth at the end of our earnings release, as well as review our latest filings with the SEC for important material assumptions, expectations, and risk factors that may cause actual results to differ materially from those anticipated and described
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