What's in the Offing for Kinder Morgan's (KMI) Q1 Earnings?

Kinder Morgan, Inc. KMI is set to report first-quarter 2022 results on Apr 20, after the closing bell.

In the last reported quarter, the midstream energy player reported earnings of 27 cents per share, beating the Zacks Consensus Estimate of 26 cents backed by increased contributions from the Permian Highway Pipeline and a rebound in fuel demand.

In the trailing four quarters, Kinder Morgan beat the Zacks Consensus Estimate for earnings thrice and missed the same once, delivering an earnings surprise of 44.4%, on average. This is depicted in the graph below:

Kinder Morgan, Inc. Price and EPS Surprise

Kinder Morgan, Inc. price-eps-surprise | Kinder Morgan, Inc. Quote

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of 27 cents has witnessed no upward and downward movements in the past 30 days. The consensus estimate suggests a year-over-year drop of 55%.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $3.9 billion indicates a 25.6% decline from the year-ago reported figure.

Factors to Consider

Being a leading North American midstream energy player, Kinder Morgan has the continent's largest natural gas transportation network. Kinder Morgan’s natural gas pipeline assets, spreading across roughly 70,000 miles, are responsible for transporting roughly 40% of U.S. natural gas consumption and export volumes.

Being a transporter of 1.7 million barrels per day (MMB/D) of refined products through its pipeline network spreading across 6,800 miles, Kinder Morgan is the largest independent transporter of refined products in North America. It also has an operating interest in 144 terminals.

KMI is likely to have generated stable fee-based revenues from its diverse and vast network of midstream assets.

Earnings Whispers

Our proven model does not indicate 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. However, that is not the case here.

Earnings ESP: Kinder Morgan has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kinder Morgan currently carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Matador Resources Company MTDR has an Earnings ESP of +2.75% and is a Zacks #1 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Matador is scheduled to release first-quarter results on Apr 26. The Zacks Consensus Estimate for Matador’s quarterly earnings is pegged at $1.97 per share, suggesting an increase of 177.5% from the prior-year reported figure.

Range Resources Corporation RRC has an Earnings ESP of +1.82% and is a Zacks #3 Ranked player at present.

Range Resources is scheduled to release first-quarter results on Apr 26. The Zacks Consensus Estimate for RRC’s quarterly earnings is pegged at $1.11 per share, suggesting an increase of 270% from the prior-year reported figure.

PBF Energy PBF has an Earnings ESP of +35.92% and flaunts a Zacks Rank #1 at present.

PBF Energy is scheduled to release first-quarter earnings on Apr 28. The Zacks Consensus Estimate for PBF’s earnings is pegged at 21 cents per share, suggesting a massive increase from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.