Discover How Kinder Morgan, Inc. Prioritizes Shareholder Value and Sustainable Growth by Announcing a 2% Dividend Increase and Strong 2023 Outlook
Kinder Morgan, Inc. (NYSE: KMI) has recently made an important announcement that will delight its shareholders. The company's board of directors has approved a cash dividend of $0.2825 per share for the second quarter of 2023, which represents a 2% increase over the same quarter in 2022. Additionally, Kinder Morgan's robust financial performance and positive outlook for the future reflect its commitment to providing value to shareholders.
Kinder Morgan's board of directors has authorized a cash dividend of $0.2825 per share for the second quarter of 2023. This dividend, which is payable on August 15, 2023, marks a 2% increase compared to the dividend paid in the same quarter of the previous year. Shareholders of record as of July 31, 2023, will be eligible to receive this dividend. With this announcement, the company continues its dedication to rewarding investors with steady dividend growth.
In the second quarter of 2023, Kinder Morgan reported a net income attributable to KMI of $586 million, compared to $635 million in the same quarter of 2022. Despite the slight decrease in net income, the company generated distributable cash flow (DCF) of $1,076 million, and adjusted earnings amounted to $540 million for the quarter. Both adjusted EBITDA and DCF exceeded the company's 2023 plan, demonstrating the robustness of Kinder Morgan's financial performance.
Kinder Morgan remains focused on executing capital-efficient expansions of its natural gas pipeline and storage systems. The company continues to invest in projects that align with the ongoing energy transition towards a lower carbon future. By leveraging its existing natural gas transportation and storage assets, Kinder Morgan is well-positioned to respond to volatile market conditions caused by extreme weather events and intermittent renewable energy resources.
Kinder Morgan has set a positive outlook for 2023, with a budgeted net income attributable to KMI of $2.5 billion ($1.12 per share). The company plans to declare dividends of $1.13 per share for the year, representing a 2% increase over the previous year's dividends. Additionally, Kinder Morgan has budgeted DCF of $4.8 billion ($2.13 per share) and adjusted EBITDA of $7.7 billion. The company aims to maintain a strong balance sheet and a Net Debt-to-Adjusted EBITDA ratio of 4.0 times, well below its long-term target of 4.5 times.
As part of its commitment to lower-carbon energy investments, Kinder Morgan is dedicating approximately 80% of its project backlog to ventures that contribute to a greener energy future. These investments include natural gas as a substitute for higher emitting fuels, renewable natural gas (RNG), renewable diesel (RD), and sustainable aviation fuel (SAF). The company recently placed its renewable feedstock storage and logistics hub project in service, furthering its involvement in cleaner energy solutions.
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