Kinder Morgan, Inc. Reports Q1 2024 Results

TL;DR

<b>Kinder Morgan's Q1 2024 net income was $770 million on $4,960 million in revenue, with a slight decrease in net income compared to the prior year.</b>

AI Summary

KINDER MORGAN, INC. (EP-PC) filed a Quarterly Report (10-Q) with the SEC on April 19, 2024. Kinder Morgan reported Q1 2024 net income attributable to Kinder Morgan, Inc. of $770 million. Total revenues for Q1 2024 were $4,960 million. Net income for the three months ended March 31, 2024, was $770 million, a decrease from $790 million in the same period of 2023. Earnings per common share for Q1 2024 were $0.34. The company's Natural Gas Pipelines segment generated $3,000 million in revenue for Q1 2024.

Why It Matters

For investors and stakeholders tracking KINDER MORGAN, INC., this filing contains several important signals. The filing details Kinder Morgan's financial performance for the first quarter of 2024, providing key metrics such as revenue, net income, and earnings per share. This report is crucial for investors and analysts to assess the company's operational efficiency, profitability, and overall financial health in the current market environment.

Risk Assessment

Risk Level: medium — KINDER MORGAN, INC. shows moderate risk based on this filing. The company reported a slight decrease in net income for Q1 2024 compared to Q1 2023, indicating potential headwinds or increased costs impacting profitability.

Analyst Insight

Monitor Kinder Morgan's upcoming filings for trends in revenue growth and cost management to understand the sustainability of its current earnings.

Financial Highlights

revenue

4,960

net Income

770

eps

0.34

Revenue Breakdown

Key Numbers

• 770 — Net Income Attributable to Kinder Morgan, Inc. (Q1 2024)
• 4,960 — Total Revenues (Q1 2024)
• 0.34 — Earnings Per Common Share (Q1 2024)
• 3,000 — Natural Gas Pipelines Revenue (Q1 2024)
• 790 — Net Income (Q1 2023)

Key Players & Entities

• KINDER MORGAN, INC. (company) — Filer
• 2024-03-31 (date) — Period of report
• 2024-04-19 (date) — Filing date
• 77002 (location) — Business address zip code
• 713-369-9000 (phone) — Business phone

FAQ

Risk Factors

• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's borrowing costs and the fair value of its debt.
• Commodity Price Volatility [medium — market]: Fluctuations in natural gas and oil prices can impact the demand for and profitability of the company's services.
• Operational Interruptions [medium — operational]: Unforeseen events such as equipment failures or natural disasters could disrupt operations and impact revenue.

Filing Documents

• kmi-20240331.htm (10-Q) — 1799KB
• kmi-03312024exh41.htm (EX-4.1) — 103KB
• kmi-03312024exh101.htm (EX-10.1) — 382KB
• kmi-03312024x10qxexh221.htm (EX-22.1) — 1KB
• kmi-03312024ex311.htm (EX-31.1) — 11KB
• kmi-03312024ex312.htm (EX-31.2) — 11KB
• kmi-03312024ex321.htm (EX-32.1) — 5KB
• kmi-03312024ex322.htm (EX-32.2) — 5KB
• kmi-20240331_g1.gif (GRAPHIC) — 6KB
• 0001506307-24-000031.txt (&nbsp;) — 9509KB
• kmi-20240331.xsd (EX-101.SCH) — 48KB
• kmi-20240331_cal.xml (EX-101.CAL) — 77KB
• kmi-20240331_def.xml (EX-101.DEF) — 387KB
• kmi-20240331_lab.xml (EX-101.LAB) — 670KB
• kmi-20240331_pre.xml (EX-101.PRE) — 531KB
• kmi-20240331_htm.xml (XML) — 1455KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Statements of Income - Three Months Ended March 3 1 , 202 4 and 202 3 4 Consolidated Statements of Comprehensive Income - Three Months Ended March 3 1 , 202 4 and 202 3 5 Consolidated Balance Sheets - as of March 3 1 , 202 4 and December 31, 202 3 6 Consolidated Statements of Cash Flows - Three Months Ended March 3 1 , 202 4 and 202 3 7 Consolidated Statements of Stockholders' Equity - Three Months Ended March 3 1 , 202 4 and 202 3 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Note 1 . General 10 Note 2 . Acquisition 11 Note 3 . Losses on Impairments 12 Note 4 . Debt 13 Note 5 . Stockholders ' Equity 14 Note 6 . Risk Management 15 Note 7 . Revenue Recognition 19 Note 8 . Reportable Segments 21 Note 9 . Income Taxes 22 Note 10 . Litigation and Environmental 22 Note 1 1 . Recent Accounting Pronouncements 26 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations General and Basis of Presentation 27 Results of Operations 27 Overview 27 Consolidated Earnings Results 30 Non-GAAP Financial Measures 32 Segment Earnings Results 36 Liquidity and Capital Resources 42 Summarized Combined Financial Information for Guarantee of Securities of Subsidiaries 47 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 50 Signature 51 1 KINDER MORGAN, INC. AND SUBSIDIARIES GLOSSARY Company Abbreviations EPNG = El Paso Natural Gas Company, L.L.C. Ruby = Ruby Pipeline Holding Company, L.L.C. KMBT = Kinder Morgan Bulk Terminals, Inc. SFPP = SFPP, L.P. KMI = Kinder Morgan, Inc. and its majority-owned and/or controlled subsidiaries SNG = Southern Natural Gas Company, L.L.C. TGP = Tennessee Gas Pipeline Company, L.L.C. KMLT = Kinder Morgan Liquid Terminals, LLC Unless the context otherwise requires, references to "we," "us," "our," or "the Company" are intended to mean Kinder Morgan, Inc. and its majority-owned and/or controlled subsidiaries. Common Industry and Other Terms /d = per day LLC = limited liability company Bbl = barrels MBbl = thousand barrels BBtu = billion British Thermal Units MMBbl = million barrels Bcf = billion cubic feet MMtons = million tons CERCLA = Comprehensive Environmental Response, Compensation and Liability Act NGL = natural gas liquids NYMEX = New York Mercantile Exchange CO 2 = carbon dioxide or our CO 2 business segment OTC = over-the-counter DD&A = depreciation, depletion and amortization RNG = Renewable natural gas EPA = U.S. Environmental Protection Agency ROU = Right-of-Use FASB = Financial Accounting Standards Board U.S. = United States of America GAAP = U.S. Generally Accepted Accounting Principles WTI = West Texas Intermediate 2 Information Regarding Forward-Looking Statements This report includes forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. They use words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "outlook," "continue," "estimate,

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. KINDER MORGAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts, unaudited) Three Months Ended March 31, 2024 2023 Revenues Services $ 2,232 $ 2,069 Commodity sales 1,520 1,785 Other 90 34 Total Revenues 3,842 3,888 Operating Costs, Expenses and Other Costs of sales (exclusive of items shown separately below) 1,107 1,215 Operations and maintenance 680 639 Depreciation, depletion and amortization 587 565 General and administrative 175 166 Taxes, other than income taxes 111 110 Gain on divestitures, net ( 32 ) — Other income, net ( 9 ) ( 1 ) Total Operating Costs, Expenses and Other 2,619 2,694 Operating Income 1,223 1,194 Other Income (Expense) Earnings from equity investments 243 165 Amortization of excess cost of equity investments ( 12 ) ( 17 ) Interest, net ( 472 ) ( 445 ) Other, net — 2 Total Other Expense ( 241 ) ( 295 ) Income Before Income Taxes 982 899 Income Tax Expense ( 209 ) ( 196 ) Net Income 773 703 Net Income Attributable to Noncontrolling Interests ( 27 ) ( 24 ) Net Income Attributable to Kinder Morgan, Inc. $ 746 $ 679 Class P Common Stock Basic and Diluted Earnings Per Share $ 0.33 $ 0.30 Basic and Diluted Weighted Average Shares Outstanding 2,220 2,247 The accompanying notes are an integral part of these consolidated financial statements. 4 KINDER MORGAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions, unaudited) Three Months Ended March 31, 2024 2023 Net income $ 773 $ 703 Other comprehensive (loss) income, net of tax Net unrealized (loss) gain from derivative instruments (net of taxes of $ 21 and $( 32 ), respectively) ( 69 ) 106 Reclassification into earnings of net derivative instruments (gain) to net income (net of taxes of $ 1 and $ 15 , respectively) ( 3 ) ( 49 ) Benefit plan adjustments (net of taxes of $( 4 ) and $( 1 ), respectively) 13 4 Total other compr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. General Organization We are one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, 702 Bcf of working natural gas storage capacity and have RNG generation capacity of approximately 6.1 Bcf per year of gross production. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO 2 , renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks. Basis of Presentation General Our accompanying unaudited consolidated financial statements have been prepared under the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These rules and regulations conform to the accounting principles contained in the FASB's Accounting Standards Codification (ASC), the single source of GAAP. In compliance with such rules and regulations, all significant intercompany items have been eliminated in consolidation. In our opinion, all adjustments, which are of a normal and recurring nature, considered necessary for a fair statement of our financial position and operating results for the interim periods have been included in the accompanying consolidated financial statements, and certain amounts from prior periods have been reclassified to conform to the current presentation. Interim results are not necessarily indicative of results for a full year; accordingly, you should read these consolidated financial statements in conjunction with our consolidated financial statements and related notes included in our 2023 Form 10-K. The accompanying unaudited consolidated financial statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. We evaluate ou

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