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morgan children (New York Stock Exchange: KMI) +23% in trading on Thursday after reporting fourth-quarter adjusted EBITDA increased 8% year-over-year to $1.95bn and distributable cash flow increased 13% to $0.54/share after generating $590m of excess DCF above of its declared dividend during Q4.
Kinder Morgan (KMI) said net income attributable to the company in the fourth quarter increased to $670 million, compared with net income attributable to $637 million in the year-ago quarter.
Fourth-quarter adjusted earnings rose to $708 million, or $0.31 per share, from $609 million, or $0.27 per share a year earlier, beating analysts’ EPS estimates by $0.01; one of the strongest areas of the company was gas pipelines, where profit rose 11% year-over-year to $1.4bn and volumes increased 4%, helped by demand for liquefied natural gas and a strong performance from KinderHawk gathering assets in Haynesville.
The company said it is moving forward with the planned $678 million Evangeline Pass project after receiving notice and appropriate credit support from developer Venture Global LNG to continue construction activities.
For 2023, Kinder Morgan (KMI) reaffirmed guidance for Adjusted EBITDA of $7.7 billion and DCF of $4.8 billion (or $2.13 per share), and to end the year with a net debt to adjusted EBITDA ratio of 4x, well below its long term. 4.5x objective.
The company said Steve Kean will step down as chief executive officer on August 1 and will be succeeded by current chairman and former chief financial officer Kim Dang.
