KINDER MORGAN Reports Second Quarter FY2023 Earnings Results on July 19th

☀️Earnings Overview

On July 19, 2023, KINDER MORGAN ($NYSE:KMI) reported their financial results for the second quarter of FY2023 (ending on June 30, 2023). Total revenue for the quarter was USD 3501.0 million, a decrease of 32.0% compared to the same quarter a year earlier. Net income for the quarter was USD 586.0 million, a 7.7% decrease when compared to the same period last year.

Market Price

KINDER MORGAN stock opened at $17.3 and closed the day at the same price, up by a slight 0.1% from its last closing price of $17.3. This marks the company’s fourth consecutive quarter of positive growth, as investors remain optimistic about the future of the company. KINDER MORGAN’s second quarter performance was largely driven by increased demand for its natural gas pipelines and Kinder Morgan Canada Limited’s Trans Mountain Pipeline System. The company also reported significant growth in its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Overall, KINDER MORGAN’s earnings results for the second quarter of FY2023 were largely positive and demonstrate the company’s commitment to delivering strong financial performance in the long-term. Investors will be keeping an eye on the company’s performance over the coming quarters to see if it can continue this trend. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Kinder Morgan. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Kinder Morgan. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Kinder Morgan. More…

Key Ratios Snapshot

Some of the financial key ratios for Kinder Morgan are shown below. More…

Analysis

We conducted an analysis of KINDER MORGAN‘s financials. Based on our Star Chart, KINDER MORGAN is strong in dividend but medium in growth, profitability and assets. We gave them an intermediate health score of 6/10 considering their cashflows and debt, suggesting they might be able to pay off their debts and fund future operations. We classified KINDER MORGAN as a “cheetah” type of company, which we defined as those that achieved high revenue or earnings growth but were considered less stable due to lower profitability. Investors interested in such a company may be looking for strong dividend yields, but would also have to consider the potential instability caused by the lower profitability. They would need to have a greater degree of risk appetite and may be more interested in short-term gains than in building a long-term portfolio. Additionally, they should be prepared to monitor KINDER MORGAN’s financials closely to ensure they remain healthy. More…

Peers

Kinder Morgan Inc is a leading pipeline transportation and energy storage company in North America. The company operates in three segments: Natural Gas Pipelines, Products Pipelines, and Terminals. Kinder Morgan’s competitors include ONEOK Inc, Kinetik Holdings Inc, and Keyera Corp.

– ONEOK Inc ($NYSE:OKE)

ONEOK Inc. is one of the largest energy midstream service providers in the United States. It owns and operates natural gas liquids (NGL) gathering, processing, transportation and storage assets, as well as natural gas pipelines. The company’s NGL business includes the gathering, processing and transportation of NGLs, as well as the storage and marketing of propane, butane and natural gasoline. The company’s natural gas business includes the transportation of natural gas through an interstate natural gas pipeline system.

– Kinetik Holdings Inc ($NASDAQ:KNTK)

Kinetik Holdings Inc is a publicly traded company with a market capitalization of 1.54 billion as of 2022. The company has a return on equity of 5.46%. Kinetik Holdings is engaged in the business of providing a range of energy storage solutions. The company’s products are used in a variety of applications including automotive, residential, commercial and industrial.

– Keyera Corp ($TSX:KEY)

Keyera Corp is a Canadian company that owns and operates energy infrastructure assets. Its business segments include natural gas gathering and processing, natural gas liquids (NGL) extraction and fractionation, transportation, storage and marketing, and power generation. The company has a market cap of 6.31B as of 2022 and a Return on Equity of 17.57%.

Summary

KINDER MORGAN released their Q2 FY2023 earnings report on July 19, 2023. Revenue for the quarter was USD 3501.0 million, representing a 32.0% year-over-year decrease. Net income was USD 586.0 million, resulting in a 7.7% decrease from the second quarter of the previous year.

For potential investors, these results indicate that KINDER MORGAN may not be a wise investment at this time, as the company is still struggling to recover from the decline in revenue and profitability. Investment analysts may want to consider other companies in the industry before investing in KINDER MORGAN.