Kinder Morgan raises dividend after surge in demand for gas

8
1 minute
Kinder Morgan raises dividend after surge in demand for gas

In short: - Kinder MorganKinder Morgan's profit more than doubled from the prior quarter and the U.S. pipeline operator raised its annual forecast as well as dividend, benefiting from a sudden demand surge for natural gas as fuel in Texas during the February winter storm. The deep freeze that swept parts of Texas in Februrary and knocked out nearly half of U.S. power plants, caused prices for natural gas, used in heating and power generation to record levels. While other companies were moving away from natural gas, Kinder Morgan benefited from the sudden surge in demand for the fuel during the cold snap and would have used it instead by selling electricity it would have used otherwise for a unit to the Texas grid instead. The company also raised its full year net income forecast from a $2.1 billion projection outlined at the end of the fourth quarter to as much as $2.9 billion. The bulk of our improvement is due to the challenging performance of our Natural Gas Pipelines segment in the face of strong conditions presented by the February winter storm, Chief Executive Steve Kean said. Although the natural gas transport volumes were down 3% overall amid the lingering impact on demand from the COVID-19 pandemic, Kinder Morgan's natural gas pipelines by adjusted income had increased by almost 80%. The company's total adjusted profit jumped from $604 million, or 27 cents per share, in the fourth quarter to $1.37 billion, or 60 cents per share, in the first quarter ended 31 March, or $200 million for the third quarter. Kinder Morgan also raised its cash dividend for 2021 by 3% to $1.08 per share per share.

  • Comments
Loading comments...