Kinder Morgan Foresees Strong Natural Gas Demand

SEATTLE (Oil Monster): Kinder Morgan Inc. (KMI) reported first quarter 2024 financial results. The company foresees strong natural gas demand over the next six years.

The company reported earnings per share (EPS) of $0.33 in the first quarter 2024, higher by 10% from the corresponding quarter a year before. The distributable cash flow (DCF) per share of $0.64 was up by 5% year-on-year.

The company reported net income attributable to KMI of $746 million in Q1 2024, as compared with $679 million in the first quarter of 2023. The DCF of $1,422 million was significantly higher when compared with $1,374 million in Q1 2023.

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Commenting on the results, Richard D. Kinder, Executive Chairman, KMI noted that the company has got off to a strong start to the year, driven by increased financial contributions from its Natural Gas Pipelines, Products Pipelines and Terminals business segments. The company ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times, he added.

KMI expects a bright future for its Natural Gas Pipelines business segment in the coming years, despite the current low natural gas price environment. It must be noted that the segment had reported strong financial performance during Q1 this year.

The demand for natural gas is expected to record substantial growth between now and 2030, mainly driven by growth in LNG export demand and sharp rise in exports to Mexico.