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Kinder Morgan, Inc. (NYSE: KMI) shared that its board of directors has given approval for a cash dividend of $0.2875 per share for the first quarter ($1.15 annualized). This dividend is payable on May 15, 2024, to stockholders of record as of April 30, 2024. Notably, this dividend marks a 2% increase over the first quarter of 2023.
Kinder Morgan stands as one of the preeminent energy infrastructure companies in North America. With a steadfast commitment to facilitating the flow of reliable and affordable energy, KMI plays a pivotal role in enhancing the quality of life for communities and businesses across the globe. Through its extensive network of pipelines and storage facilities, KMI ensures the safe and efficient transportation of energy resources, thereby contributing to economic growth and sustainability.
Key financial metrics
In terms of financial performance, the company reported the following for the first quarter:
- Earnings per share (EPS) of $0.33 and distributable cash flow (DCF) per share of $0.64, showing respective increases of 10% and 5% compared to the first quarter of 2023.
- Net income attributable to KMI amounted to $746 million, compared to $679 million in the first quarter of 2023.
- DCF for the quarter totaled $1,422 million, up from $1,374 million in the first quarter of 2023.
Outlook
Looking ahead to 2024, including contributions from the acquired STX Midstream assets, KMI has budgeted for significant growth:
- Net income attributable to KMI is projected to reach $2.7 billion ($1.22 per share), reflecting a 15% increase over 2023.
- The company expects to declare dividends of $1.15 per share for 2024, marking a 2% increase from the dividends declared for 2023.
- Budgeted DCF for 2024 stands at $5 billion ($2.26 per share), with Adjusted EBITDA expected to reach $8.16 billion, both showing an 8% increase over 2023.
- KMI aims to end 2024 with a Net Debt-to-Adjusted EBITDA ratio of 3.9 times.
These projections are based on assumptions of average annual prices for West Texas Intermediate (WTI) crude oil and Henry Hub natural gas, which are estimated at $82 per barrel and $3.50 per million British thermal unit (MMBtu), respectively. These estimates align with the forward curve observed during the company’s annual budget process.
KMI shares closed 2.53% higher at US$18.21 apiece on 18 April 2024.
