KMI - This 5.5%-Yielding Dividend Stock Supercharges Its Growth Engine by Adding Nearly $2 Billion of Fuel
2024-07-19 05:19:00 ET
Kinder Morgan (NYSE: KMI) has struggled to grow in recent years . The natural gas pipeline giant's adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) were $7.5 billion last year, about the same level as it was in 2018. While the company's financial results were very stable during that period, its earnings didn't grow.
However, the pipeline company reached an inflection point this year (it expects to generate about $8.2 billion in EBITDA , an 8% increase from last year). Meanwhile, it recently added a lot more fuel to its growth engine, which should enable it to continue increasing its earnings (and 5.5%-yielding dividend) over the next several years. Improving its growth profile enhances its long-term investment appeal.
Kinder Morgan entered 2024 with $3 billion of growth capital projects in its backlog. That was down from $3.8 billion in the third quarter of last year due to the completion of several large capital projects. It finished the Tennessee Gas Pipeline's East 300 line upgrade, the Permian Highway Pipeline expansion project, and the Freer to Sinton project on its Texas Intrastate system.
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This 5.5%-Yielding Dividend Stock Supercharges Its Growth Engine by Adding Nearly $2 Billion of Fuel