Shares of energy infrastructure company Kinder Morgan Inc. (KMI) have gained 5.2% so far this year. Recently, KMI delivered better-than-expected fourth-quarter numbers on both top-line and bottom-line fronts.
Revenue jumped 42% year-over-year to $4.43 billion beating estimates by $817.8 million. Earnings per share at $0.27 came in ahead of expectations by $0.01.
Further, KMI has announced the construction of a renewable diesel hub in Southern California. The move, combined with a previous announcement of a Northern California renewable diesel hub, represents an over $50 million investment by the company in the distribution of renewable fuels in California.
Notably, both these projects have long-term customer contracts and are anticipated to be in service in Q1 2023.
With these developments in mind, let us take a look at the changes in KMI’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Kinder Morgan’s top risk category is Finance & Corporate, contributing 10 of the total 36 risks identified for the stock, compared to a sector average of 10 risks under the same category.
In its recent report, the company has added one key risk factor under the Legal & Regulatory risk category.
KMI highlighted that a potential change in the U.S., federal or local tax legislation in the future could adversely impact the company’s current or future tax planning and effective tax rates, its business, and profitability.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in Kinder Morgan by 138.2 thousand shares in the last quarter, indicating a neutral hedge fund confidence signal in the stock based on activities of 15 hedge funds.
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