Kinder Morgan Inc (NYSE:KMI), one of the largest energy infrastructure companies in North America, stock fell 1.88% (As on January 18, 11:13:28 AM UTC-4, Source: Google Finance) after the company missed Wall Street’s estimates for Q4 distributable cash flow (DCF) per share.  The company has reported DCF per share of 52c, just below the consensus estimates of 53c. Adjusted EBITDA stood at $1.93 billion, compared with analysts’ expectations of $1.99 billion. Net income attributable to KMI was reported at $594 million, down from the $670 million in the same quarter a year earlier. The decreases versus fourth quarter 2022 are largely related to increased interest expense which was anticipated in the company’s 2023 budget guidance. The company finished the year slightly behind its budget primarily due to lower commodity prices. KMI ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 4.2, even with its $1.8 billion STX Midstream acquisition closing just before year end. The leverage ratio would be lower with a full-year contribution of Adjusted EBITDA from the acquired assets.

Moreover, this quarter the company had expeditiously closed a major acquisition of STX Midstream for $1.8 billion. Those assets fit nicely into the existing Texas Intrastate system serving Gulf Coast and Mexico demand markets. The company has also continued to execute on expansion projects in all of the business segments, most notably the Natural Gas Pipelines business segment, where four major projects were placed in service during the quarter and another four are underway.

Further, the Products Pipelines business segment completed two projects that added 17,500 barrels per day (Bbl/d) of renewable diesel (RD) throughput capacity in Northern California and an additional 178,000 barrels of RD storage capacity in Southern California. And the Energy Transition Ventures group put the Prairie View landfill renewable natural gas (RNG) facility into service, bringing the total RNG generation capacity to 6.1 billion cubic feet (Bcf) per year. The project backlog at the end of the fourth quarter was $3 billion, down from $3.8 billion in the third quarter due to the completion of multiple large projects including Tennessee Gas Pipeline’s (TGP) East 300 line upgrade, the Permian Highway Pipeline (PHP) expansion project and the Texas Intrastates’ Freer to Sinton project.

KMI in the fourth quarter of FY 23 has reported the adjusted earnings per share of 28 cents, missing the analysts’ estimates for the adjusted earnings per share of 30 cents. The company had reported the adjusted revenue of $4.04 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $4.4 billion.