Kinder Morgan 2023 earnings slip despite improved products, terminal contributions

Kinder Morgan's 2023 net income totaled $2.39 billion, down 6.2% from 2022. Its fourth-quarter 2023 earnings also slipped, easing to $594 million from $670 million.
Jan. 19, 2024
2 min read

Kinder Morgan Inc.’s (KMI) 2023 net income totaled $2.39 billion, down 6.2% from 2022. Its fourth-quarter 2023 earnings also slipped, easing to $594 million from $670 million. KMI attributed the fourth-quarter decreases largely to expected increases in interest expenses.

Contributions from KMI’s products pipeline business segment and terminals business segment were both up relative to fourth-quarter 2022, but were matched by declines of similar scale in the company’s natural gas pipeline and CO2 segments.

KMI acquired STX Midstream from NextEra Energy Partners for $1.8 billion in fourth-quarter 2023 and plans to integrate the 4.9-bcfd natural gas pipeline system into its Texas Intrastate network serving the US Gulf Coast and Mexico (OGJ Online, Nov. 6, 2023). Acquired pipeline systems include Eagle Ford Midstream, a 90% interest in the 2.3-bcfd NET Mexico pipeline, and a 50% interest in Dos Caminos LLC.

NET Mexico runs from the Aqua Dulce hub in Nueces County, Tex., to a border connection near the Rio Grande in Starr County. Dos Cominos—previously a joint venture between Howard Energy Partners and Eagle Ford Midstream—uses 62 miles of 36-in. OD pipe to connect to connect natural gas infrastructure in Webb County, Tex., to Kinder Morgan Texas Pipeline’s (KMTP) compressor station in Freer, Tex.

KMI projects put into service fourth-quarter 2023 included Tennessee Gas Pipeline’s 115-MMcfd East 300 line upgrade, the 550-MMcfd Permian Highway pipeline expansion, and Texas Intrastate’s 67-mile Freer-to-Stinton interconnection. Completion of these projects reduced KMI’s backlog to $3 billion, from $3.8 billion in third-quarter 2023.

The 42-in. OD Freer-to-Sinton work completed Kinder Morgan Tejas’s expansion of its Eagle Ford shale gas transportation system, boosting capacity to Gulf Coast markets to 2 bcfd. The new pipeline segment connects KMTP’s Freer compressor station, to an interconnect with Tejas near Sinton.

 

 

About the Author

Christopher E. Smith

Editor in Chief

Chris brings 32 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 20 of them in the midstream and transportation sectors.

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