Kinder Morgan Inc. surpassed Wall Street estimates for first-quarter profit on April 20 as strong demand for jet fuel and natural gas boosted volumes at the U.S pipeline operator.
Exports of U.S. LNG to Europe have hit record levels after Moscow’s invasion of Ukraine as the EU tries to cut its dependence on Russian energy.
That has come as a boon for U.S. pipeline operators, with Kinder Morgan—which transports nearly half of the natural gas in the country—posting a 2% rise in volumes of the commodity.
The company expects the trend to continue, saying that its present LNG export facilities would likely run at capacity for the foreseeable future.
“The U.S. will be a major supplier of additional LNG to Europe to replace at least in part Russian gas,” Executive Chairman Richard Kinder said on a call with analysts.
The results for the January-March quarter also got a boost from the resurgence in air travel, with volumes of jet fuel transported surging 38%.
But net income attributable to the company fell to $667 million, or 29 cents per share, from $1.41 billion, or 62 cents per share, a year earlier. Last year, the company had benefited from a winter storm that boosted demand for natural gas and electricity.
Excluding that impact, earnings per share rose 17%, the company said.
On an adjusted basis, Kinder Morgan earned 32 cents per share, beating the average analyst estimate of 29 cents per share, according to Refinitiv IBES data.
Recommended Reading
Delek Logistics Offering Senior Notes to Pay Off Debt
2024-08-15 - Delek Logistics Partners and its subsidiary plan to use the net proceeds from the senior notes offering to pay off a portion of the outstanding borrowings from its credit facility.
CrownRock Offloads Oxy Shares Two Weeks After Closing $12B Deal
2024-08-15 - Underwriters of the offering agreed to purchase CrownRock’s Occidental stock at $58.15 per share, which will result in approximately $1.719 billion in proceeds before expenses.
SPATCO Energy Exits RF Investment Fund
2024-08-15 - RF investment Partners said it invested in SPATCO Energy Solution’s $230 million continuation fund, which was led by Kian Capital Partners and Apogem Capital.
Winded: Ørsted Books More Impairments, Delays US Offshore Project
2024-08-15 - Danish offshore wind developer Ørsted booked about $574 million in impairments and scrapped a green fuels project in Europe.
Mexico Energy Forum: Election Impacts on US-Mexico Energy Trade
2024-08-15 - Mexico Energy Forum President Roberto Salinas León shared his thoughts with Oil and Gas Investor on a number of themes related to recent elections in Mexico.