Kinder Morgan Announces Q1 Results, Hikes Dividend

Energy infrastructure company Kinder Morgan, Inc. (NYSE: KMI) has reported better-than-expected results for the first quarter ended March 31, 2022.

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Following the earnings, shares of the company rose 1.7% to close at $20.10 in Wednesday’s extended trading session.

Revenue & Earnings

Revenue for the quarter came in at $4.29 billion, down 17.6% year-over-year. However, the figure comfortably surpassed the consensus estimate of $3.56 billion.

Earnings for the quarter stood at $0.32 per share, down from $0.60 per share in the same quarter last year but above the consensus estimate of $0.27 per share.

Operating income stood at $1 million, down 45.7% year-over-year. Similarly, adjusted EBITDA for the quarter came in at $1.96 billion, which denotes a decline of 30% year-over-year.

Dividend Hike

Kinder Morgan has announced a quarterly dividend of $0.2775 per share, an increase of about 3% from the previous dividend of $0.27, reflecting a dividend yield of 5.6%.

The dividend will be paid on May 16, 2022, to shareholders of record as of May 2, 2022.

Management Commentary

The Executive Chairman of Kinder Morgan, Richard D. Kinder, said, “The company is off to a great start this year and once again generated robust earnings and strong coverage of this quarter’s dividend. We continue to live within our cash flow, have reduced our debt by more than $11 billion since 2015, and plan for this year to be the fifth consecutive year of increased dividends.

“During 2022 we expect to once again fund our expansion capital opportunities internally, meet or exceed our debt metric goal, and return excess cash to our shareholders through a dividend increase and opportunistic share repurchases.”

Stock Rating

Consensus among analysts is a Moderate Sell based on two Holds and three Sells. KMI’s average price target of $19.20 implies downside potential of 2.9% from current levels. Shares have gained 18.5% over the past year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on KMI, as 7.2% of portfolios tracked by TipRanks increased their exposure to KMI stock over the past 30 days.

Conclusion

Although Kinder Morgan’s results came in weaker than the previous year, economic tailwinds in the form of rising energy prices bode well for the company’s profitability in the near future.

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