Sector: Energy | Focus: Oil & Gas Storage & Transportation
HQ: Houston, Texas
Financial Risks
Kinder Morgan faces risks from fluctuating commodity prices (natural gas, NGL, crude oil), interest rates, and foreign exchange rates. Litigation and environmental matters, including potential Superfund site cleanup costs and lawsuits related to the "Good Neighbor Plan," pose significant financial uncertainties. The company's capital expenditure requirements are uncertain due to increasingly stringent regulations. Working capital deficits and debt repayment obligations also present liquidity risks.
Financial Upside
Kinder Morgan anticipates declaring a 2% higher dividend in 2024. The company expects to invest $1.98 billion in expansion projects and acquisitions. Favorable segment earnings, particularly in Natural Gas Pipelines and Terminals, and a gain on divestitures, contribute to positive financial results. Increased volumes and rates for services, and higher RIN sales, also contribute to revenue growth.