Kinder Morgan Inc (NYSE:KMI) Beats Wall Street Expectations

Kinder Morgan Inc (NYSE:KMI) stock rose 2.07% (As on Jan 20, 11:24:41 AM UTC-4, Source: Google Finance) after the company beat Wall Street expectations for fourth-quarter profit, as the U.S. pipeline operator transported higher volumes of gasoline and jet fuel with demand rising as people resumed travel and business activity picked up. KMI has reported fourth quarter net income attributable to KMI of $637 million, compared to $607 million in the fourth quarter of 2020; and distributable cash flow (DCF) of $1,093 million, compared to $1,250 million in the fourth quarter of 2020. Adjusted Earnings were $609 million for the quarter, versus $604 million in the fourth quarter of 2020.

KMI in the fourth quarter of FY 21 has reported the adjusted earnings per share of 27 cents, beating the analysts’ estimates for the adjusted earnings per share of 25 cents, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 42 percent to $4.43 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $3.58 billion.

Moreover, the Natural Gas Pipelines segment’s financial performance was up 2% in the fourth quarter of 2021 relative to the fourth quarter of 2020. The segment provided higher contributions from the full year in-service of the Permian Highway Pipeline, as well as from the new Stagecoach assets and from increased volumes and favorable pricing on the Altamont and South Texas gathering systems. These were offset by lower contributions from Fayetteville Express Pipeline (FEP), Natural Gas Pipeline of America (NGPL), and El Paso Natural Gas (EPNG)

Additionally, the company has declared a cash dividend of $0.27 per share for the fourth quarter ($1.08 annualized), payable on February 15, 2022, to stockholders of record as of the close of business on January 31, 2022. This dividend is a 3% increase over the fourth quarter of 2020.

For 2022, KMI expects to generate net income attributable to KMI of $2.5 billion and declare dividends of $1.11 per share, a 3% increase from the 2021 declared dividends. KMI expects to generate 2022 DCF of $4.7 billion and Adjusted EBITDA of $7.2 billion; and to end 2022 with a Net Debt-to-Adjusted EBITDA ratio of 4.3, below our long-term target of approximately 4.5 times. The $4.7 billion DCF and 4.3 times leverage metric do not reflect the potential impact of the possible use of up to $750 million available for attractive opportunities, including share repurchases.

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