Kinder Morgan (NYSE: KMI) reported Q4 EPS of $0.28, $0.02 worse than the analyst estimate of $0.30. Revenue for the quarter came in at $4.04 billion versus the consensus estimate of $4.4 billion.

GUIDANCE:

Kinder Morgan sees FY2024 EPS of $1.22.

• For 2024, KMI’s preliminary budget published on December 4, 2023 forecasted, among other metrics, EPS of $1.21 and DCF per share of $2.21. It did not include the acquisition of NextEra Energy Partners’ STX Midstream assets that closed on December 28, 2023. KMI is updating its budget to incorporate the acquisition of the STX Midstream assets, which results in a final 2024 budgeted EPS of $1.22, up 15% versus 2023, DCF per share of $2.26, and Adjusted EBITDA of $8.16 billion, both up 8% versus 2023 and a year-end 2024 Net Debt-to-Adjusted EBITDA ratio of 3.9 times. KMI’s expectation to declare dividends of $1.15 per share for 2024 is unchanged.
• The preliminary and final budgets assume average annual prices for West Texas Intermediate (WTI) crude oil and Henry Hub natural gas of $82 per barrel and $3.50 per million British thermal unit (MMBtu), respectively, consistent with the forward curve during the company’s annual budget process.
• “While current prices are lower, we did not update commodity prices in our final guidance given their potential to change over the next year. However, using our disclosed sensitivities even at current prices, we would still expect strong growth over 2023, given our relatively modest commodity exposure. For example, at a WTI crude oil price of $72 per barrel and Henry Hub natural gas price of $2.80 per MMBtu, 2024, EPS would grow at 12% versus 2023 and DCF per share would grow at 6%,” said Dang.
• This press release includes Adjusted Earnings and DCF, in each case in the aggregate and per share, Adjusted Segment EBDA, Adjusted EBITDA, Net Debt, FCF (free cash flow), and Project EBITDA, all of which are non-GAAP financial measures. For descriptions of these non-GAAP financial measures and reconciliations to the most comparable measures prepared in accordance with generally accepted accounting principles, please see “Non-GAAP Financial Measures” and the tables accompanying our preliminary financial statements.

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