Kinder Morgan sees higher 2023 adjusted core earnings on strong demand

Kinder Morgan Inc KMI on Wednesday forecast higher adjusted core earnings for 2023, as the U.S. pipeline operator bets on higher demand for transporting crude oil, gas-liquids and carbon dioxide.

Demand for oil and gas has surged following Russia's invasion of Ukraine, as sanctions against Moscow left Europe scrambling to find alternate gas supplies and improve long-term energy security, leading to record U.S. liquefied natural gas export volumes.

Elevated commodity prices have also encouraged producers to boost output, thus benefiting pipeline operators such as Kinder Morgan.

"We expect 2023 to be another very good year for Kinder Morgan, with strong market fundamentals, continued robust growth in demand," said Steve Kean, the company's chief executive officer.

Kean also expects the company's 2023 results to be offset by higher interest rates.

The company forecast 2023 adjusted earnings before interest, taxes, depreciation, and amortization of $7.7 billion, compared with its 2022 outlook of about $7.5 billion.

Kinder Morgan earlier raised its 2022 forecast for annual net income and distributable cash flow forecasts in July, citing stronger-than-expected commodity prices and favorable operating results from the company's natural gas pipelines and carbon dioxide business segments.

The company also plans to invest $2.1 billion in expansion projects, joint ventures and discretionary capital expenditures of which roughly 80% is in lower carbon projects in 2023, higher than its 2022 forecast of $1.3 billion.

Kinder Morgan expects 2023 net income of $1.12 per share, in line with its current 2022 forecast.