Kinder Morgan's Q4 Profits Dip on Interest Costs and Natural Gas Challenges
(Reuters) — Pipeline and terminal operator Kinder Morgan on Wednesday posted a lower-than-expected profit for the fourth quarter, as higher interest expenses and weakness in the natural gas pipeline segment hurt margins during the period.
Shares of the company were down 1.2% at $17.3 in trading after the bell.
The company posted an adjusted profit of 28 cents per share for the quarter ended Dec. 31, compared with analysts' average estimate of 30 cents per share, according to LSEG data.
Weakness in the carbon dioxide (CO2) transportation segment also pressured Kinder Morgan's quarterly earnings, hit by weaker prices of natural gas liquids and lower CO2 volumes.
The Houston-based firm's earnings from the CO2 segment dropped to $170 million in the quarter, from $194 million last year.
U.S. natural gas futures fell nearly 44% in 2023, its first annual fall in four years, which is also its biggest decline since 2006, dragged by record production, ample inventories in storage and relatively mild weather conditions, hitting transportation firms like Kinder Morgan.
Kinder Morgan's adjusted core profit from the natural gas pipeline segment was down to $1.33 billion in the October-December quarter, from $1.35 billion last year.
The company raised its adjusted core profit guidance for 2024 to $1.22 per share from its previous forecast of $1.21 per share, on the inclusion of NextEra Energy Partners' STX Midstream assets, following its acquisition.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments