Kinder Morgan, Inc. KMI is set to report third-quarter 2024 earnings on Oct. 16, after the closing bell.

Let us delve into the factors that are anticipated to have affected this pipeline operator’s performance. However, before that, it would be worth reviewing KMI’s performance in the previous quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Highlights of Q2 Earnings & Surprise History

In the last reported quarter, the company’s adjusted earnings per share of 25 cents were in line with the Zacks Consensus Estimate, primarily due to increased financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. This was partially offset by an increase in total costs and expenses during the quarter.

Kinder Morgan’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, met in one and missed in the other two, the average negative surprise being 2.63%. This is depicted in the graph below:

Estimate Trend

The Zacks Consensus Estimate for third-quarter earnings per share of 27 cents has witnessed one upward revision and no downward movement over the past seven days. The estimate suggests an 8% improvement from the prior-year reported numbers.

The Zacks Consensus Estimate for revenues of $3.82 billion indicates a 2.29% decrease from the year-ago reported figure.

Factors to Note

Kinder Morgan is expected to have maintained a stable performance in the third quarter, bolstered by long-term contracts that ensure consistent cash flows and protect against short-term market fluctuations.

The company’s vast natural gas pipeline network has likely benefited from the high demand for natural gas. Liquefied natural gas (LNG) exports, which saw continued expansion in the third quarter, must have raised the demand. Kinder Morgan, which transports about 40% of all U.S. natural gas, is well-positioned to capitalize on this growth. As LNG export facilities continue to scale up, including those serving the United States and Mexico, pipeline utilization is expected to remain robust.

Per EIA, the Natural Gas Henry Hub Spot price increased 1.4% sequentially in the third quarter. Higher natural gas prices in parts of the third quarter, fueled by supply constraints and heightened international demand, might have positively impacted Kinder Morgan’s revenues, particularly in its gathering and processing segments.

These factors are anticipated to have aided the company’s financial performance in the quarter.

Earnings Whisper

Our proven model indicates an earnings beat for Kinder Morgan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just the case here, as you will see below.

Earnings ESP: KMI’s Earnings ESP is +3.70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.

Cheniere Energy, Inc. LNG currently has an Earnings ESP of +2.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cheniere Energy is scheduled to release third-quarter earnings on Oct. 31. The Zacks Consensus Estimate for LNG’s earnings is pegged at $1.84 per share, suggesting a 22.4% decrease from the prior-year reported figure.

Cenovus Energy Inc. CVE presently has an Earnings ESP of +8.11% and a Zacks Rank #3.

Cenovus Energy is scheduled to release third-quarter earnings on Nov. 7. The Zacks Consensus Estimate for CVE’s earnings is pegged at 56 cents per share, suggesting a 22.2% decrease from the prior-year reported figure.

Chevron Corporation CVX currently has an Earnings ESP of +3.36% and a Zacks Rank #3.

Chevron is scheduled to release third-quarter earnings on Nov. 1. The Zacks Consensus Estimate for CVX’s earnings is pegged at $2.80 per share, suggesting an 8.2% decline from the prior-year reported figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Chevron Corporation (CVX) : Free Stock Analysis Report

Cenovus Energy Inc (CVE) : Free Stock Analysis Report

Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research