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Kinder Morgan (KMI) Unveils Its 2022 Financial Projections

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Kinder Morgan, Inc. KMI has recently provided a glimpse of its preliminary 2022 financial projections.

With a strong focus on returning capital back to shareholders, Kinder Morgan projects annual dividend next year at $1.11 per share. KMI also expects to repurchase up to $750 million of shares next year.

Included in the financial projections is the generation of $7.2 billion of adjusted EBITDA, suggesting an improvement of 5% from the 2021 forecast. For the next year, KMI is also expecting to generate distributable cash flow – in excess of discretionary capital expenditures and dividends – of roughly $870 million.

To strengthen the balance sheet, Kinder Morgan is planning to end next year with a net debt to adjusted EBITDA of 4.3 times. With this plan, KMI is expecting the ratio for 2022 to be lower than its long-term target of roughly 4.5 times.

Kinder Morgan has also announced its capital spending plan for 2022 that suggests $1.3 billion of investments in expansion projects and contributions to joint ventures.

Overall, for 2022, Kinder Morgan is expecting to generate $1.09 per share of net income, suggesting an improvement of 33 cents from its latest forecast of 76 cents for this year.

Considering all the projections, it has become evident that Kinder Morgan expects 2022 to be a very strong year. KMI added that its performance next year will be healthy, being backed by the acquisition of Stagecoach Gas Services and several key project completions in the December quarter of 2021.

Kinder Morgan, Inc. Price

Kinder Morgan, Inc. Price
Kinder Morgan, Inc. Price

Kinder Morgan, Inc. price | Kinder Morgan, Inc. Quote

Currently, Kinder Morgan carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Callon Petroleum Company CPE. While Continental Resources carries a Zacks Rank #2 (Buy), Whiting Petroleum and Callon Petroleum sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil price improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 168.9% year to date, outpacing the 94.4% rise of the composite stocks belonging to the industry.

Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.

Headquartered in Oklahoma City, OK, Continental Resources has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Considering the price chart, CLR has gained 170.7% so far this year, outpacing the 94.3% improvement of the composite stocks belonging to the industry.

Callon Petroleum is also a leading exploration and production company with a strong presence in prolific unconventional resources that comprise Permian Basin and Eagle Ford Shale play.

CPE has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, Callon Petroleum has gained 273.6% year to date, outpacing the 94.4% improvement of the composite stocks belonging to the industry.


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