Kinder Morgan Inc (NYSE:KMI) stock fell 3.11% (As on October 20, 11:44:10 AM UTC-4, Source: Google Finance) after the company missed earnings estimates for the third quarter of FY 22. The company has reported third quarter net income attributable to KMI of $576 million, compared to net income attributable to KMI of $495 million in the third quarter of 2021; and distributable cash flow (DCF) of $1,122 million, compared to $1,013 million in the third quarter of 2021. The company’s Natural Gas Pipelines segment continues to see strong demand for the extensive firm transport and storage services the company offer, as well as favorable contract renewals on multiple assets across the network. The company is also moving forward with projects to provide additional transport capacity to liquefied natural gas (LNG) facilities and remain focused on continuing to be the provider of choice for that growing market. Given the proximity of the existing assets to planned LNG expansions, the company expects to maintain and potentially expand on the approximately 50% share of transport capacity to LNG export facilities.

KMI in the third quarter of FY 22 has reported the adjusted earnings per share of 25 cents, missing the analysts’ estimates for the adjusted earnings per share of 29 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 35.9 percent to $5.18 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $2.47 billion.

Additionally, the company has approved a cash dividend of $0.2775 per share for the third quarter ($1.11 annualized), payable on November 15, 2022, to stockholders of record as of the close of business on October 31, 2022. This dividend is a 3% increase over the third quarter of 2021. Further, during the quarter, the company took several steps to increase value for our shareholders, including progressing expansion projects and selling a 25.5% equity interest in Elba Liquefaction Company, L.L.C. (ELC) for approximately $565 million, which implies an approximately 13 times enterprise value to EBITDA multiple.  Year-to-date through October 18 the company has repurchased approximately 21.7 million shares at an average price of $16.94 per share.

The company also budgeted 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 times. KMI now expects net income attributable to KMI to be favorable to budget by approximately 3% and Adjusted EBITDA and DCF to be favorable to budget by approximately 4%-5%