Houston, Texas-based Kinder Morgan, Inc. (KMI) is a midstream energy infrastructure provider in North America. The company operates pipelines to transport natural gas, crude oil, condensate, refined petroleum products, and more. With a market cap of $60.4 billion, Kinder Morgan operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The energy sector giant is expected to release its fourth-quarter earnings on Wednesday, Jan. 15.
Ahead of the event, analysts expect Kinder Morgan to report an adjusted profit of $0.33 per share, up 17.9% from $0.28 per share reported in the year-ago quarter. The company has matched or surpassed Wall Street’s earnings estimates twice over the past four quarters while missing on two other occasions. Its adjusted EPS for the last reported quarter remained flat at $0.25 while missing analysts’ estimates by 7.4%.
For fiscal 2024, analysts anticipate Kinder Morgan to report an adjusted EPS of $1.17, up 9.4% from $1.07 in fiscal 2023. While in fiscal 2025, its EPS is expected to grow 8.6% year-over-year to $1.27.
KMI stock prices have soared 55.1% over the past 52 weeks, significantly outperforming the Energy Select Sector SPDR Fund’s (XLE) marginal gains over the past year and the S&P 500 Index’s ($SPX) 23.8% surge during the same time frame.
Kinder Morgan’s stock prices observed a marginal dip in the trading session after the release of its Q3 earnings on Oct. 16 as the company missed Wall Street’s topline and earnings expectations. Kinder Morgan’s financials took a hit during the quarter due to the lackluster performance of its Products Pipeline segment impacted by lower commodity prices and CO2 segment which was primarily impacted by lower crude volumes and higher power costs. This resulted in a 5.3% year-over-year decline in revenues to $3.7 billion.
Despite the headwinds in Products Pipeline and CO2 segments, the company showcased impressive expense discipline. Its adjusted net margin expanded 67 basis points compared to the year-ago quarter to 15.1%, which resulted in its adjusted net income to shareholders remaining mostly flat at $557 million.
The consensus opinion on KMI stock is moderately bullish with an overall “Moderate Buy” rating. Out of the 18 analysts covering the stock, six recommend “Strong Buy,” one advises “Moderate Buy,” and eleven suggest a “Hold” rating. As of writing, KMI is trading slightly above its mean price target of $27.
