why did kinder morgan stock drop

Should investors be worried about Kinder Morgan's DCF drop?

The drop in Kinder Morgan's DCF, therefore, seems to have miffed investors, but they shouldn't have to worry as long as DCF didn't drop because of a fall in profits. Kinder Morgan, in fact, increased its dividend by 3% earlier this year and still had $397 million in DCF left in Q3 after factoring in the higher dividend payout.

Is the market overreacting to Kinder Morgan's Q3 earnings?

Oil and gas stock Kinder Morgan ( KMI 2.45% ) tanked on Thursday, losing 5.9% in value as of 12:45 p.m. EDT in reaction to the company's third-quarter numbers released Wednesday evening. I believe the market has overreacted. Here are some notable numbers from Kinder Morgan's third-quarter earnings report:

How safe is Kinder Morgan's dividend?

The biggest takeaway from Kinder Morgan's third-quarter report, therefore, is that its DCF continues to grow, which also means Kinder Morgan's high dividend yield of 5.8% looks safe. That's the factor that should matter most to investors in high-yield oil stocks.

Is Kinder Morgan’s (KMI) stock underperforming the S&P 500?

A month has gone by since the last earnings report for Kinder Morgan (KMI). Shares have lost about 3.8% in that time frame, underperforming the S&P 500.

What happened to Kinder Morgan?

2014: In August, KMI acquires all of the publicly held shares/units of KMP, KMR and EPB in an approximately $76 billion transaction which closes on November 26. Kinder Morgan is now one publicly traded company with a ticker on the New York Stock Exchange of KMI.

Is Kinder Morgan a good stock to buy?

Kinder Morgan currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.

What happened to Kinder Morgan stock in 2015?

Then in mid-2015, the company began to feel, in light of its debt load, that wasn't realistic. The company felt it would need to cut its dividend to cover its growth obligations, and that pushed down the company's share price. The company could no longer issue equity, and that forced it to cut its dividend.

Did KMI increase dividend?

HOUSTON--(BUSINESS WIRE)-- Kinder Morgan, Inc.'s (NYSE: KMI) board of directors today approved a cash dividend of $0.2775 per share for the first quarter ($1.11 annualized), payable on May 16, 2022, to stockholders of record as of the close of business on May 2, 2022.

Will Kinder Morgan stock go up?

The 20 analysts offering 12-month price forecasts for Kinder Morgan Inc have a median target of 20.00, with a high estimate of 24.00 and a low estimate of 17.00. The median estimate represents a +2.41% increase from the last price of 19.53.

What is the future for Kinder Morgan?

For the full 2021 fiscal year, the company generated DCF of $5.46 billion. That compares to the roughly $4.60 billion achieved in 2020....The future looks bright.Metric$ Value of Denominator for 2022Trading MultipleEBITDA$7.2 billion10.1 (EV / EBITDA)DCF$4.7 billion8.8 (Price / DCF)2 more rows•Jan 23, 2022

What happened to Kinder Morgan in 2016?

Slow but steady improvement. Kinder Morgan's fortunes cratered during the energy price slump of 2014-2017. By 2016, the company's revenue on a trailing 12-month basis fell almost 20% to just over $13 billion. Net income dropped off a proverbial cliff, falling 85.6% between Q3 2014 and Q3 2016.

How many miles of pipeline does Kinder Morgan have?

approximately 83,000 milesKinder Morgan is one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 83,000 miles of pipelines and 141 terminals. Our pipelines transport natural gas, gasoline, crude oil, carbon dioxide (CO2) and more.

When did Kinder Morgan buy El Paso?

October 16, 2011On October 16, 2011, El Paso Corporation announced that it has entered into a definitive agreement whereby Kinder Morgan, Inc. will acquire all of the outstanding shares of El Paso Corporation. For more information, visit www.elpaso.com.

Does KMI pay a monthly dividend?

Schedule monthly income from dividend stocks with a monthly payment frequency. Diversify across sectors or allocate more towards a bullish sector thesis. Quickest stock price recoveries post dividend payment.

Is KMI a monthly dividend?

Kinder Morgan (NYSE:KMI) pays quarterly dividends to shareholders.

How often does KMI pay a dividend?

Dividend Summary There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0.

Kinder Morgan Q4 Earnings Beat Estimates

Segment Analysis

Kinder Morgan reported fourth-quarter 2021 adjusted earnings per share of 27 cents, beating the Zacks Consensus Estimate by a penny. The bottom line suggests no movement from the prior-year reported number.

Kinder Morgan Beats Q4 Earnings & Revenues Estimates

Natural Gas Pipelines: For the December-end quarter of 2021, adjusted earnings before depreciation, depletion and amortization expenses, including the amortization of the excess cost of equity investments (EBDA), rose to $1,215 million from $1,189 million a year ago.

Segment Analysis

Kinder Morgan reported fourth-quarter 2020 adjusted earnings per share of 27 cents, beating the Zacks Consensus Estimate of 24 cents. The bottom line also increased from the year-ago quarter’s profit of 26 cents. The strong quarterly earnings were aided by contributions from the Texas Intrastate systems and Natural Gas Pipeline of America (NGPL).

Operational Highlights

Natural Gas Pipelines: Adjusted earnings before depreciation, depletion and amortization expenses, including amortization of excess cost of equity investments (EBDA), in the December quarter of 2020 were down 5% to $1,189 million from $1,248 million a year ago. Lower transportation and gathering volumes affected the performance.

Balance Sheet

Expenses related to operations and maintenance totaled $606 million, down from $679 million a year ago. However, total operating costs increased to $2,135 million in the fourth quarter from $1,421 million in the corresponding period of 2019.

2021 Guidance

As of Dec 31, 2020, Kinder Morgan reported $1,184 million in cash and cash equivalents. The company’s long-term debt amounted to $30,838 million at quarter-end. Total debt-to-capitalization ratio at the end of the fourth quarter was 51.2%.

How many miles of pipelines does Kinder Morgan have?

The midstream infrastructure provider expects its board of directors to hike dividend payment for 2021 by 3% to $1.08 per share (annualized). Notably, Kinder Morgan projects 2021 net income of $2.1 billion or earnings of 92 cents per share. The company also projects DCF for this year at roughly $4.4 billion.

Why is cash king during earnings season?

Kinder Morgan is one of the largest energy midstream companies in North America, operating 70,000 miles of natural gas pipelines and nearly 10,000 miles of oil and NGL pipelines. Beyond pipelines, KMI also processes oil and gas into refined products and has 700 BCF of natural gas storage capacity.

How much is KMI earnings in 2021?

Cash is King during earnings season, as this volatile time can create buying opportunities. That’s because the market tends to have knee-jerk reactions either to the upside or downside on companies’ quarterly results. The ‘sell first, ask questions later’ mentality can create buying opportunities for patient value investors with cash on hand.

What are the risks of KMI?

KMI reported respectable results, with adjusted earnings growing by 4% YoY, to $505 million during Q3 2021. This was driven by stronger natural gas transport volumes, which were up 3% YoY, due to increased Gulf Coast demand from industrial and LNG customers. In addition, KMI also benefited from the Permian Highway Pipeline going into service, and from increased natural gas volumes on the Tennessee Gas pipeline, due to increased deliveries to LNG customers.

What is 69% of our backlog?

Risks to KMI include changing sentiments around fossil fuels in favor of renewable energy. I see management addressing this risk, however, with the recent $310 million acquisition of Kinetrex Energy, which closed in August. Kinetrex is an emerging company that focuses on the production of RNG (renewable natural gas) from landfills.