Kinder Morgan, Inc. announced that its board of directors has approved a cash dividend of $0.2875 per share for the second quarter of 2024, payable on August 15, 2024, to stockholders of record as of July 31, 2024. This represents a 2 percent increase over the dividend for the second quarter of 2023.
The company reported earnings per share of $0.26 and distributable cash flow per share of $0.49 for the second quarter, reflecting flat and 2 percent increases, respectively, compared to the same period in 2023. Net income attributable to KMI was $575 million, down from $586 million in the second quarter of 2023. DCF for the quarter reached $1,100 million, up from $1,076 million in the previous year’s second quarter.
“In the second quarter, we enjoyed another solid quarter of strong operational and financial performance,” said executive chairman Richard D. Kinder. “We continued to internally fund high-quality capital projects while generating $1.7 billion in cash flow from operations and $1.1 billion in free cash flow after capital expenditures. Additionally, we welcomed Amy Chronis to our board of directors, where her financial acumen and robust knowledge of the energy industry will be invaluable.”
CEO Kim Dang highlighted increased financial contributions from the Natural Gas Pipelines, Products Pipelines, and Terminals business segments, with adjusted EBITDA up 3 percent compared to the second quarter of 2023. Dang also noted the company’s strong balance sheet, ending the quarter with a Net Debt-to-adjusted EBITDA ratio of 4.1 times.
Despite the current low-price environment for natural gas, Dang expressed optimism about the future, citing significant demand growth projections for natural gas, particularly for LNG exports, exports to Mexico, and new demand for electric generation associated with artificial intelligence operations, cryptocurrency mining, data centers, and industrial re-shoring.
Dang announced the successful binding open season on the proposed South System Expansion 4 Project, which aims to increase Southern Natural Gas Pipeline’s South Line capacity by approximately 1.2 billion cubic feet per day. Once completed, this project will help meet growing power generation and local distribution company demand in Southeast markets.
Kinder Morgan’s project backlog at the end of the second quarter was $5.2 billion, up from $3.3 billion in the first quarter of 2024. Approximately 80 percent of this backlog is devoted to lower-carbon energy investments, including conventional natural gas, renewable natural gas, renewable diesel, feedstocks associated with RD, sustainable aviation fuel, and carbon capture and sequestration.
“Our collaboration with partners and our investment in lower-carbon energy projects demonstrate Kinder Morgan’s commitment to maintaining energy security for the United States and supporting global efforts to reduce carbon emissions,” Kinder concluded.
For more information visit www.kindermorgan.com
