Kinder Morgan Stock In Spotlight After Q4 Earnings Miss: Retail’s Undecided
The midstream firm said it would build a 216-mile pipeline named Trident Intrastate, carrying about 1.5 billion cubic feet of natural gas from Katy to the liquefied natural gas corridor near Port Arthur in Texas.
FollowKinder Morgan (KMI) stock garnered retail attention on Thursday after the company fell short of the Wall Street estimate for fourth-quarter profit.
On Wednesday, the company reported adjusted net earnings of $0.32 per share, narrowly missing the average analysts’ estimate of $0.33 per share, according to Koyfin data.
The energy pipeline operator’s fourth-quarter revenue fell to $3.99 billion from $4.04 billion last year, driven by a 7% fall in natural gas gathering volumes primarily from Haynesville and Bakken due to lower commodity prices.
However, the natural gas pipelines segment's core earnings rose compared to last year, driven by higher contributions from its Texas Intrastate system and additional contributions from its STX Midstream acquisition.
Kinder Morgan also said it would build a 216-mile pipeline named Trident Intrastate, carrying about 1.5 billion cubic feet of natural gas from Katy to the liquefied natural gas corridor near Port Arthur in Texas.
The project announcement follows U.S. President Donald Trump’s executive order on Monday, which lifted the pause on new liquefied natural gas permits imposed by the Biden administration.
The Houston-based firm aims to capitalize on a surge in natural gas demand, also driven by artificial intelligence data centers. At the end of the quarter, it had a project backlog of $8.1 billion.
The company said its total refined products transport volumes were up 2%, and crude and condensate volumes were down 5% compared to the fourth quarter of 2023.
Kinder Morgan forecasted its 2025 net income to rise 8% to $2.8 billion.
“With robust market fundamentals and a new (Presidential) Administration committed to expediting energy infrastructure projects, the future looks bright,” Executive Chairman Richard D. Kinder said.
Shares of the company rose 0.4% in pre-market trade.
Retail sentiment on Stocktwits dipped to ‘neutral’ (54/100) from ‘extremely high’(93/100) a day ago, while retail chatter soared to ‘extremely high.’
KMI’s Sentiment Meter and Message Volume as of 07:26 a.m. ET on Jan. 23, 2025 | Source: Stocktwits
Users' comments were also divided, with some remaining bullish and some skeptical about the stock’s valuation.
Over the past year, the stock has gained nearly 79%.
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