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Kinder Morgan (KMI) to Report Q1 Earnings: What to Expect?

Kinder Morgan, Inc. KMI is set to report first-quarter 2024 earnings on Apr 17, after the closing bell.

Let us delve into the factors that are anticipated to have influenced this pipeline operator’s performance in the to-be-reported quarter. However, it is worth taking a look at KMI’s previous quarter’s performance first.

Highlights of Q4 Earnings & Surprise History

In the last reported quarter, the company’s adjusted earnings per share of 28 cents missed the Zacks Consensus Estimate of 31 cents, primarily driven by a decline in realized weighted natural gas liquid price. Quarterly earnings were also impacted by the milder winter conditions observed in 2023.

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Kinder Morgan’s earnings beat the Zacks Consensus Estimate twice and missed the same twice in the trailing four quarters, the average negative surprise being 1.43%. This is depicted in the graph below:

Kinder Morgan, Inc. Price and EPS Surprise

 

Kinder Morgan, Inc. Price and EPS Surprise
Kinder Morgan, Inc. Price and EPS Surprise

Kinder Morgan, Inc. price-eps-surprise | Kinder Morgan, Inc. Quote

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of 34 cents has witnessed one upward revision and no downward movement over the past 30 days. The estimate suggests a 13.3% improvement from the prior-year reported number.

The Zacks Consensus Estimate for KMI’s first-quarter revenues of $4.4 billion indicates a 13.4% increase from the year-ago reported figure.

Factors to Note

Kinder Morgan is expected to have maintained a stable performance in the first quarter of 2024, bolstered by long-term contracts that ensure consistent cash flows and protect against short-term market fluctuations.

As the largest independent transporter of refined products in North America, the company handles 2.4 million barrels per day of petroleum products. This high volume of transported goods likely enhanced Kinder Morgan's profit levels in the first quarter.

However, challenges are likely to have loomed due to the softening of oil and gas prices, driven by a slowing global economy and geopolitical tensions. Per the EIA data, the West Texas Intermediate crude price have declined 1.4% sequentially in the first quarter.

These factors are anticipated to have affected demand and pricing dynamics, potentially impacting Kinder Morgan's financial performance in the quarter.

Earnings Whispers

Our proven model does not indicate an earnings beat for Kinder Morgan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: KMI’s Earnings ESP is -5.88%. This is because the Most Accurate Estimate is pegged at earnings of 32 cents per share, whereas the Zacks Consensus Estimate is pegged at earnings of 34 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

PBF Energy PBF currently has an Earnings ESP of +14.72% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PBF Energy is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for PBF’s earnings is pegged at 46 cents per share, suggesting an 83.3% decline from the prior-year reported figure.

Marathon Oil Corporation MRO presently has an Earnings ESP of +0.45% and a Zacks Rank #3.

Marathon Oil is scheduled to release first-quarter earnings on May 1. The Zacks Consensus Estimate for MRO’s earnings is pegged at 56 cents per share, suggesting a 16.4% decline from the prior-year reported figure.

Halliburton Company HAL currently has an Earnings ESP of +0.81% and a Zacks Rank #3.

Halliburton is scheduled to release first-quarter earnings on Apr 23. The Zacks Consensus Estimate for HAL’s earnings is pegged at 74 cents per share, suggesting a 2.8% increase from the prior-year reported figure.

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Halliburton Company (HAL) : Free Stock Analysis Report

Marathon Oil Corporation (MRO) : Free Stock Analysis Report

Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

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