Kinder Morgan Q4 earnings meet estimates; revenue up 4%

Energy infrastructure company Kinder Morgan (KMI) reported an increase in fourth-quarter revenues, helped mainly by strong contributions from the natural gas business segment. While the top-line missed, earnings came in line with Wall Street estimates.

Adjusted earnings rose to $0.25 per share from $0.21 per share in the fourth quarter of 2017 and matched estimates. Net profit, on a reported basis, was $0.48 billion or $0.21 per share during the three-month period, compared to a net loss of $1.05 billion or $0.47 per share a year earlier.

At $3.78 billion, revenues were up 4% compared the year-ago quarter. The top line benefitted from strong performance by the natural gas business segment but missed analysts’ forecast.

Also see: Kinder Morgan Q4 2018 Earnings Conference Call Transcript

Distributable cash flow grew 7% year-on-year to $1.27 billion in the fourth quarter, aided by positive inputs from the natural gas segment, lower general and administrative expenses and lower preferred equity dividend payments.

“We continued to make progress on two projects critical to the development of resources in the Permian Basin, the Gulf Coast Express and Permian Highway Pipeline projects,” said CEO Steve Kean.

The board of directors approved a cash dividend of $0.20 per share for the fourth quarter, which represents a 60% increase from the same period of the preceding year. The dividend will be paid on February 15, 2019, to stockholders of record on January 31, 2019.

Kinder Morgan meets expectations on Q3 earnings but misses on revenues

Looking ahead, the management expects distributable cash flow to be about $5.0 billion in fiscal 2019 when adjusted EBITDA is anticipated to come in at $7.8 billion. During the fiscal year, a total of $3.1 billion will be invested in growth projects and joint ventures.

Kinder Morgan shares lost about 8% over the past twelve months. The stock ended Wednesday’s trading session slightly higher but lost about 1% in the after-hours trading.

Get access to timely and accurate verbatim transcripts that are published within hours of the event