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Kinder Morgan Inc. (KMI) is one of the largest energy infrastructure companies in North America with approximately 83,000 miles of pipelines and 147 terminals handling petroleum, chemicals and other products.
The company generated 62% of its revenue from commodity sales and 37% of its revenue from services during the first quarter of 2021. The majority of these revenue came from natural gas pipelines (79%) with additional contributions coming from products pipelines, terminals, CO2, and corporate and eliminations revenue streams.
Kinder Morgan reported first-quarter revenue that soared by 67.5% to $5.21 billion, beating consensus estimates by $2.17 billion, along with non-GAAP earnings of 60 cents per share, beating consensus estimates by 35 cents. Management expects adjusted EBITDA of $7.6 to $7.7 billion in FY2021.
The results were driven by greater margins on its Texas intrastate pipeline systems resulting from the temporary supply and demand imbalances and substantial spot market price volatility caused by the state’s historic winter storm, as well as favorable contributions from its CO2 segment.
The company raised its quarterly dividend by 3% to $0.27 per share, which represents a 6.6% forward yield. The dividend is payable on May 17, 2021, to shareholders on record as of April 30, 2021. In addition to the dividend, the company also has a $2 billion share buyback program in place.
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