Pipeline Operator Kinder Morgan Forecasts Higher 2023 Betting on Strong Demand

(Reuters) — Kinder Morgan Inc. on Wednesday raised its adjusted core earnings outlook for 2023, as the U.S. pipeline operator bets on higher demand for transporting crude oil, gas-liquids and carbon dioxide.

Demand for oil and gas has surged following Russia's invasion of Ukraine, as sanctions against Moscow left Europe scrambling to find alternate gas supplies and improve long-term energy security, leading to record U.S. liquefied natural gas export volumes.

Elevated commodity prices have also encouraged producers to boost output, thus benefiting pipeline operators such as Kinder Morgan.

Kinder Morgan Chief Executive Steve Kean expects its 2023 results to be offset by higher interest rates.

The Texas-based company sees its 2023 distributable cash flow (DCF) at $2.13 per share, compared to 2022 forecast of $2.17 per share and also expects interest expense to be 'significantly' higher than its 2022 forecast.

The company forecast 2023 adjusted earnings before interest, taxes, depreciation, and amortization of $7.7 billion, compared with its 2022 outlook of about $7.5 billion.

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