Kinder Morgan Inc (NYSE:KMI) stock rose 1.47% (As on Apr 21, 11:36:02 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22. The transport volumes there were up 2% or approximately 0.9 million dekatherms per day versus the first quarter of 2021 and that was driven primarily by increased LNG deliveries, generally colder weather, partially offset by the continued decline in Rockies production and a pipeline outage on EPNG. Deliveries to LNG facilities off of the pipes averaged approximately 6.2 million dekatherms per day with the 32% increase versus Q1 of ’21. The market share of deliveries to LNG facilities remains around 50%. Exports to Mexico were down in the quarter when compared to Q1 of ’21 as a result of third-party pipeline capacity added to the market. Overall deliveries to power plants were up 5% and the company believes that natural gas power demand is becoming more inelastic relative to coal. Deliveries to LDCs and industrials also increased. The overall demand for natural gas is very strong, both the internal and WoodMac numbers project between 3 and 4 Bcf of demand growth for 2022.

Moreover, the natural gas gathering volumes were up 12% in the quarter compared to the first quarter of ’21. Sequentially, volumes were down 6% with a big increase in Haynesville volumes, which were up 14%, more than offset by lower Eagle Ford volumes, which were impacted by contract termination. In the products pipeline segment, refined product volumes were up 7% for the quarter compared to the pre-pandemic levels using Q1 of ’19 as a reference point. Road fuels were down about 0.5%, so essentially flat, while jet was down 18%. Crude and condensate volumes were down 4% in the quarter versus the first quarter ’21. Sequential volumes were flat with the reduction in the Eagle Ford offset by an increase in the Bakken.

KMI in the first quarter of FY 22 has reported the adjusted earnings per share of 32 cents, beating the analysts’ estimates for the adjusted earnings per share of 28 cents. The company had reported the adjusted revenue of $4.3 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $3.6 billion. The company ended the quarter with $31.4 billion of net debt with a net debt to adjusted EBITDA ratio of 4.4 times. The company generated $1.455 billion of DCF, paid out $600 million of dividends.