Kinder Morgan beats quarterly profit estimates on strong natgas demand

Kinder Morgan, which is a subsidiary of Kinder Morgan Inc., beat Wall Street's expectations on Wednesday for its fourth-quarter profits. This was due to higher volumes transported by its pipelines.

In extended trading, shares of the pipeline operator increased 1.4% to $28.99.

U.S. Midstream Companies such as Kinder Morgan benefit from the surge in oil production and natural gas demand in the Permian Basin. This is due to record exports of liquefied gas and an increase in power generation linked to artificial intelligence, cryptocurrency mining, and data centers.

The company said it transported 48,353 billion British Thermal Units of natural gas each day in the third quarter. This compares to 44,507 Btu per daily a year earlier.

Kinder Morgan, which is responsible for?approximately 40% of all natural gas produced in the United States, reported that its total project backlog had increased from $9.3 billion to $10 billion.

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LSEG's preliminary data showed that it could export over 100 million metric tonnes (mmt) in a year thanks to the production of new plants.

U.S. Natural Gas?futures rose more than 11% sequentially during the fourth quarter. This broke a downward trend that began in the second quarter.

The adjusted core profit of Kinder Morgan's natural-gas pipeline segment increased by 30.2%, to $1.38 billion in the third quarter.

The total volume of its deliveries, which includes refined products like jet fuel and diesel fuel, decreased to 2,035 kb/d during the quarter ending December 31 from 2,105 kb/d a year earlier.

According to LSEG, the Houston-based?firm reported an adjusted profit per share of 39 cents for the three months ending December 31. This was compared with analysts’ estimates of 37 cents. (Reporting and editing by Sahal Muhammad in Bengaluru, Katha Kalia from Bengaluru)

(source: Reuters)