Kinder Morgan Stock Experiences Volatility After The Company Posts Q4 Earnings: The Details

Kinder Morgan, Inc. KMI shares are volatile in Wednesday's after-hours session following the release of the company's fourth-quarter financial results. Here's a look at the details.

What To Know: The company reported quarterly adjusted earnings of 28 cents per share, missing the analyst consensus estimate of 30 cents, a 9.68% decrease over earnings of 31 cents per share from the same period last year.

Quarterly sales of $4.04 billion fell short of analyst estimates of $4.41 billion, marking an 11.81% decrease over sales of $4.58 billion from the same period last year.

While Kinder Morgan ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 4.2, the company noted its leverage ratio would be lower with a full-year contribution of Adjusted EBITDA from the acquired assets from the company's $1.8 billion STX Midstream acquisition.

While the expectation of the company to declare dividends of $1.15 per share for 2024 remains unchanged, Kinder Morgan increased its 2024 financial guidance to include acquisition.

The update results in a final 2024 budgeted earnings per share of $1.22, an increase of 15% versus 2023, DCF per share of $2.26, and Adjusted EBITDA of $8.16 billion, both up 8% versus 2023 and a year-end 2024 Net Debt-to-Adjusted EBITDA ratio of 3.9 times.

"As we continue to implement a business model that relies on stable, fee-based assets in the energy infrastructure space, we generated substantial cash in 2023, with net income of $2.4 billion and Adjusted EBITDA of $7.6 billion for the year," said Executive Chairman Richard D. Kinder.

"The company consistently exercises disciplined capital allocation based on conservative assumptions with high return thresholds while maintaining a strong balance sheet. At the same time, we are making prudent investments in the energy transition."

KMI Price Action: Shares of Kinder Morgan were up 0.23% at $17.60 in the after-hours session at the time of publication Wednesday, according to Benzinga Pro.

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Photo: Ratfink1973 from Pixabay