Kinder Morgan 2023 earnings slip despite improved products, terminal contributions

Jan. 19, 2024
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.

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.