(Reuters) -Kinder Morgan on Monday forecast higher profits for 2024 as the U.S. pipeline operator bets on growth from its gas pipelines and energy transition projects.
Net income attributable to Kinder Morgan for 2024 is expected to be $1.21 per share, up 11% from its forecast of $1.09 per share for 2023, the company said.
“We expect to continue to benefit from the strong fundamentals of the natural gas market, supporting the growth of our existing natural gas transportation, storage, gathering and processing assets as well as expansion opportunities,” said Kim Dang. , chairman and CEO of Kinder Morgan, in a press release.
The pipeline operator also expects to benefit from higher rates in the refined products business, demand for renewable diesel and renewable diesel feedstocks, and demand for renewable natural gas.
The company said it expects to benefit from increased contract rates in its product pipeline and terminal business units.
Oil and gas shipping profits were supported by strong demand from low U.S. inventory levels and rising exports as buyers sought alternatives to Russian oil since Moscow’s invasion of Ukraine. ‘last year.
Kinder Morgan is one of the largest energy infrastructure companies in North America and operates approximately 82,000 miles of pipeline.
Canadian peers TC Energy and Enbridge had also earlier estimated higher adjusted core earnings for 2024.
Kinder Morgan expects to generate $8 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2024, up 5% from the 2023 forecast of $7.6 billion.
The company added that it plans to invest $2.3 billion in discretionary capital expenditures, including expansion projects and contributions to joint ventures.
(Reporting by Tanay Dhumal and Arunima Kumar in Bangalore; editing by Maju Samuel)
