Kinder Morgan Logs Higher Q3 Income

Energy infrastructure major Kinder Morgan Inc. (KMI) has reported a net income of $625 million for the third quarter of 2024, up from the $532 million for the third quarter of 2023.

“The company had a solid third quarter on increased financial contributions from our Natural Gas Pipelines and Terminals business segments, with Adjusted EBITDA up 2 percent versus the third quarter of 2023”, said Chief Executive Officer Kim Dang.

“We advanced a number of exciting projects during the quarter, including finalizing the investment decision with respect to a $455 million expansion on the Gulf Coast Express Pipeline that will increase natural gas deliveries by 570 million cubic feet per day (MMcf/d) from the Permian Basin to South Texas markets“, added Dang.

“We are also developing an NGPL Gulf Coast Storage Expansion project that will provide approximately 10 billion cubic feet (Bcf) of incremental natural gas storage capacity on NGPL’s high-growth Gulf Coast system. Storage assets have never been in greater demand to help smooth the intermittency of renewable resources on the electric grid and to provide balancing services to the growing LNG market”, Dang said.

The company's projected backlog at the end of the third quarter was $5.1 billion, versus $5.2 billion for the second quarter of 2024. The company has budgeted a net income of $2.7 billion, up 15 percent versus 2023. The budgeted net income includes contributions from the acquired STX Midstream assets.

Kinder Morgan President Tom Martin said that the business unit benefited from continued higher contributions from its Texas Intrastate system, additional contributions from the STX Midstream acquisition, and higher contributions from expansion projects on the Tennessee Gas Pipeline (TGP).

“Natural gas transport volumes were up 2 percent compared to the third quarter of 2023. Natural gas gathering volumes were up 5 percent from the third quarter of 2023, primarily from our Haynesville and Eagle Ford gathering systems“, Martin said.

Product Pipelines business segment contributions were lower compared to the third quarter of 2023, while Terminals business segment earnings were up compared to the corresponding quarter of 2023.

Additionally, CO2 business segment earnings were down compared to the third quarter of 2023. Martin said the difference was due to lower crude volumes, higher power costs, and the divestiture of certain assets earlier this year, partially offset by contributions from KMI’s Energy Transition Ventures business as well as from the North McElroy Unit acquired earlier this year.

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