Kinder Morgan is betting big on natural gas as demand is expected to soar, the company signaled in its fourth-quarter 2024 financial report.
In the quarterly financial update, the pipeline company reported an 11% annual jump in earnings per share for the last quarter of 2024, at $0.30, slightly below analyst expectations. Revenue for the quarter dipped on an annual basis, however, because of low crude oil and condensate volumes on its pipeline network. These volumes were down by 5% on the year in Q4 2024.
“KMI had a very strong fourth quarter on increased financial contributions from our Natural Gas Pipelines, Products Pipelines and Terminals business segments, with Adjusted EBITDA up 7% versus the fourth quarter of 2023. Our balance sheet remains healthy, as we ended the year with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times,” chief executive Kim Dang said.
“We are also today announcing the Trident Intrastate Pipeline Project, an approximately 216-mile pipeline build underpinned by long-term contracts that will provide approximately 1.5 billion cubic feet per day (Bcf/d) of capacity from Katy, Texas to the LNG and industrial corridor near Port Arthur, Texas,” Dang said.
The chief executive also added that “Between LNG exports to Mexico, power and industrial growth, our internal number for growth in the overall natural gas business is roughly 28 bcfd between now and 2030.”
Kinder Morgan is an example of how much energy companies are set to benefit from President Trump’s pro-hydrocarbon agenda, especially in LNG. The growth of the LNG industry in the country depends on more pipeline capacity and now it may just get it. After repealing the Biden admin’s ban on new LNG export terminal approvals, the president has also sought to stimulate higher sales by threatening the European Union with tariffs unless it buys more U.S. liquefied gas.
Source: By Irina Slav from Oilprice.com