Kinder Morgan sees FY24 EPS of $1.15, consensus $1.19

Kinder Morgan “announced its preliminary 2024 financial projections. We expect 5% growth across the board in 2024 in Adjusted EBITDA, distributable cash flow (DCF) and DCF per share due to growth projects in all our business segments, but most prominently in Natural Gas Pipelines and Energy Transition Ventures, as well as from contract rate escalations in our Products Pipelines and Terminals business segments. It is important to note that the company’s budget does not include the recently announced acquisition of NextEra Energy Partners’ STX Midstream assets which we expect would have a positive impact on the metrics above. We are projecting an annualized dividend of $1.15 in 2024, constituting the 7th year in a row in which we have increased our dividend. No share repurchases are assumed in the budget, but we will have substantial capacity to transact opportunistically as our 2024 Net Debt-to-Adjusted EBITDA ratio is forecast to be 3.8 times, far below our long-term target of 4.5 times. We anticipate generating net income attributable to KMI per share of $1.21, up 11% compared to our year-end 2023 forecast of $1.09 per share, with Adjusted EBITDA up 5% from 2023 at $8 billion, compared to the 2023 forecast of $7.6 billion, and DCF of $5 billion and DCF per share of $2.21, both up 5% from our 2023 forecast. Expected growth in DCF and DCF per share would have been higher if not for increased sustaining capex driven by expanded regulatory requirements.”