(Reuters) – Pipeline and terminal operator Kinder Morgan reaffirmed its annual profit outlook on Wednesday and said it expects demand for natural gas to grow substantially between now and 2030.
The company had said in January that it still has an optimistic outlook for natural gas demand due to demand from LNG export facilities and increased exports from Mexico.
This comes at a time when natural gas prices have fallen 20.4% in the first quarter of 2024 compared to a year earlier.
“While natural gas prices are expected to be significantly below budget throughout the year, given that we have modest direct exposure to commodity prices and have seen strong execution across our businesses, there is no change in our full-year budget guidance ” said the Chief Executive. Officer Kim Dang.
The company also met first-quarter profit expectations, helped by higher volumes in the natural gas pipeline segment.
The natural gas pipeline segment saw a boost from higher margins realized on the company’s storage assets and higher volumes on its gathering systems, with an additional boost from the acquisition of STX Midstream, the company said.
Adjusted core profit from the company’s natural gas pipeline segment was $1.52 billion, up from $1.43 billion a year ago.
Adjusted earnings were 34 cents per share for the three months ended March 31, in line with LSEG estimates.
The Houston, Texas-based company also approved a 2% increase in its quarterly dividend.
(Reporting by Saikeerthi and Roshia Sabu in Bengaluru; Editing by Shilpi Majumdar)
