Kinder Morgan, Inc. (NYSE: KMI) announced today that its board of directors has approved a cash dividend of $0.2875 per share for the second quarter ($1.15 annualized). The dividend will be payable on August 15, 2024, to shareholders of record as of July 31, 2024, marking a 2% increase over the second quarter of 2023.
Financial highlights for the quarter include:
- Earnings per share (EPS) of $0.26 and distributable cash flow (DCF) per share of $0.49, remaining flat and increasing by 2%, respectively, compared to the second quarter of 2023.
- Net income attributable to KMI amounted to $575 million, down from $586 million in the second quarter of 2023.
- DCF for the quarter totaled $1,100 million, up from $1,076 million in the second quarter of 2023.
Richard D. Kinder, Executive Chairman, commented, “In the second quarter, we delivered strong operational and financial performance. We funded high-quality capital projects internally, generating $1.7 billion in cash flow from operations and $1.1 billion in free cash flow after capital expenditures. We are also pleased to welcome Amy Chronis to our board of directors, where her financial expertise and deep knowledge of the energy industry will be invaluable.”
Kinder emphasized Kinder Morgan’s role as a leader in the midstream sector, managing a vast network of fee-based assets in energy infrastructure. He highlighted the company’s contribution to U.S. energy security and its significant support for the liquefied natural gas (LNG) sector, including operations at Elba Island.
Kim Dang, Chief Executive Officer, noted, “KMI had a solid second quarter with increased financial contributions from our Natural Gas Pipelines, Products Pipelines, and Terminals segments, resulting in a 3% rise in Adjusted EBITDA compared to the second quarter of 2023.”
Dang highlighted the company’s strong balance sheet, ending the quarter with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times.
Looking ahead, Dang expressed optimism for the Natural Gas Pipelines segment amidst expectations of growing demand, driven by increased LNG exports and natural gas exports to Mexico. He also mentioned opportunities in electric generation linked to artificial intelligence, cryptocurrency mining, data centers, and industrial re-shoring.
Dang concluded with an announcement of the successful binding open season for the South System Expansion 4 Project, aimed at enhancing Southern Natural Gas Pipeline’s capacity to meet rising demand in Southeast markets.
The company’s project backlog stood at $5.2 billion at the end of the second quarter, up from $3.3 billion in the first quarter of 2024.
