Kinder Morgan (KMI) Reports Q1 EPS of 22c, Comments on Outlook
Kinder Morgan (NYSE: KMI) reported Q1 EPS of $0.22, may not compare to the analyst estimate of $0.24. Revenue for the quarter came in at $3.6 billion versus the consensus estimate of $4.58 billion.
2015 Outlook
"KMI expects to declare dividends of $2.00 per share for 2015, an approximately 15 percent increase over the 2014 declared dividend of $1.74 per share. Our budgeted cash coverage in excess of our declared dividends is $654 million and is based on an assumed average WTI crude oil price of approximately $70 per barrel and a Henry Hub natural gas price of $3.80 per MMBtu in 2015. The overwhelming majority of cash generated by KMI’s assets is fee based and is not sensitive to commodity prices. KMI does have some commodity price sensitivity, primarily in its CO2 segment, and hedges the majority of its next 12 months of oil production to minimize this sensitivity. For 2015, the company estimates that every $1 per barrel change in average WTI crude oil price will impact Kinder Morgan’s distributable cash flow by approximately $10 million, and each $0.10 per MMBtu change in the average price of natural gas will impact distributable cash flow by approximately $3 million. Even adjusting for current commodity prices, the company expects to have significant excess coverage in 2015."
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