Kinder Morgan Inc. ($KMI) Stock | Disappointing Earnings Weighing On Shares


Kinder Morgan Inc. (NYSE: KMI)



Kinder Morgan Earnings

After the market closed on Wednesday, Kinder Morgan (KMI) announced a miss in earnings that sent shares down in the post market session. KMI released a fourth-quarter loss of 29 cents per share on $3.64 billion in revenue while analysts were looking for 16 cents per share on $3.9 billion in revenue. However, the board of directors still approved a dividend to the tune of 12.5 cents that will be payable on February 15th.


Executive Chairman Comments

“KMI’s underlying business remains strong even in this challenging environment. Our year-end results turned out very consistent with what we projected to you in our third quarter call both from a DCF standpoint and a debt-to-EBITDA standpoint. This says to me that our fundamental businesses are doing well, notwithstanding the current weakness in our industry.” (SeekingAlpha)



KMI Technicals

KMI Chart

Shares of KMI reacted negatively at first to their disappointing earnings release but have since bounced back late in the premarket session with shares reaching the high $12 range. KMI closed down yesterday before earnings at $12.01 after reaching yearly low of $11.20. Shares are down nearly 73% since April of last year as oil and gas have plummeted in price. We should see support now at the $12 and $11.20 range while resistance will be met at the $13.41 and $14 levels.


Looking back at the daily chart you can see that shares of KMI have been crushed as oil and natural gas prices have been slashed. So far we’ve had a light winter, which has helped keep natural gas prices lower but its not over yet and we could still be in store for some serious storms, especially in the northeast. Keep an eye on KMI for 2016 as there may be some upside potential as this entire industry has been way oversold for a long time.


Company Profile

Kinder Morgan, Inc. operates as a holding company. It owns and operates pipelines and terminals that transport natural gas, gasoline, crude oil, carbon dioxide and other products and stores petroleum products, chemicals and handle bulk materials like ethanol, coal, petroleum coke and steel. The company operates through six segments: Natural Gas Pipelines, Products Pipelines, CO2, Terminals, Kinder Morgan Canada and Other. The Natural Gas Pipelines segment is engaged in the sale, transport, processing, treating, storage and gathering of natural gas. The Products Pipelines segment is engaged in the transportation and terminating of refined petroleum products, including gasoline, diesel fuel, jet fuel and natural gas liquids. The CO2 segment is engaged in the production and sale of crude oil from fields in the Permian Basin of West Texas and the transportation and marketing of carbon dioxide used as a flooding medium for recovering crude oil from mature oil fields. The Terminals segment is engaged in the translating and storing of refined petroleum products and dry and liquid bulk products, including coal, petroleum coke, cement, alumina, salt and other bulk chemicals. The Kinder Morgan Canada segment transports crude oil and refined products from Alberta, Canada to marketing terminals and refineries in British Columbia, the state of Washington and the Rocky Mountains and Central regions of the U.S. Kinder Morgan was founded by Richard D. Kinder and William V. Morgan on August 23, 2006 and is headquartered in Houston, TX. (MarketWatch)