Kinder Morgan Inc (NYSE:KMI) stock fell 1.75% (As on January 23, 11:25:19 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 24. Net income attributable to KMI of $667 million, compared to $594 million in the fourth quarter of 2023. Adjusted EBITDA of $2,063 million, up 7% versus the fourth quarter of 2023. The company continued to internally fund high-quality capital projects while generating cash flow from operations of $1.5 billion and $0.7 billion in free cash flow (FCF) after capital expenditures. KMI had a very strong fourth quarter on increased financial contributions from our Natural Gas Pipelines, Products Pipelines and Terminals business segments. Further, during the quarter the company secured additional long-term, binding transportation agreements on the previously announced Mississippi Crossing Project, resulting in a current project subscription of approximately 1.8 Bcf/d. The estimated $1.6 billion project is now designed to transport up to 2.1 Bcf/d of natural gas through the construction of nearly 206 miles of 42-inch and 36-inch pipeline and three new compressor stations.
Furthermore, the commercial teams have secured contracts to underpin three large natural gas projects – South System Expansion 4, Mississippi Crossing and Trident, totaling approximately $5 billion (KM share) in project costs. These projects are all progressing and are expected to contribute to significant future growth once in service. At the end of the fourth quarter of 2024, the backlog stood at $8.1 billion, a nearly 60% increase compared to $5.1 billion in the third quarter of 2024. Natural gas projects account for approximately 89% of the backlog. KMI expect the remaining $7.0 billion of projects in the backlog, when realized, to generate an aggregate first full year Project EBITDA multiple of approximately 5.8 times (up 0.4 times versus the previous quarter).
KMI in the fourth quarter of FY 24 has reported the adjusted earnings per share of 32 cents, missing the analysts’ estimates for the adjusted earnings per share of 34 cents. The company had reported the adjusted revenue of $3.99 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $4.21 billion.
Additionally, the company has approved a cash dividend of $0.2875 per share for the fourth quarter ($1.15 annualized), payable on February 18, 2025, to stockholders of record as of the close of business on February 3, 2025. This dividend is a 2% increase over the fourth quarter of 2023.
Kinder Morgan sees FY 2025 EPS to be of $1.27 versus the analyst consensus of $1.27.