2024-01-23 17:22:56 ET
Summary
- Kinder Morgan's recent acquisition is causing a revision to its fiscal year 2024 guidance, giving the company a sure route to relatively large growth.
- The consolidation seen in the upstream industry is now being felt in the midstream sector, potentially leading to more opportunistic acquisitions.
- Kinder Morgan's management has worked to reduce debt levels, giving financial flexibility for future projects and acquisitions.
- Kinder Morgan has working on "green projects" which gives them a material advantage over much of the industry.
- The warm December played a part in the quarterly "miss" that was reported. The recent cold spell in January is making up for that.
Kinder Morgan, Inc. ( KMI ) management found an acquisition that's causing a total revision to fiscal year 2024 guidance. Earnings should increase by 15% in the current fiscal year. That's quite an accomplishment for a company of this size. Oftentimes, a small acquisition like the one made has the effect of a giant de-bottle-necking project. More importantly, as production has grown, there are a lot more supporting infrastructure projects coming to the attention of midstream companies like this one. For shareholders, the growth in the current fiscal year will be unexpectedly large for a company of this size....
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Kinder Morgan: Growth Acceleration Ahead