Kinder Morgan

Kinder Morgan delivered astonishing results. Transport volumes were relatively constant for the quarter compared to the second quarter of 21. Power demand drove up volumes, but lower volumes countered that to Mexico due to introducing new third-party pipeline capacity to the market. Due to high summer power demand, which resulted in an additional 880 million dekatherms of gas traveling to power plants per day, deliveries to power plants were strong in the quarter, increasing by roughly 11%. Their natural gas gathering volumes also increased by 13% in the third quarter compared to the third quarter of 21. The Haynesville volumes increased by about 70% of that increase. SACROC production in CO2 is well over the target. In addition, Kinder Morgan acquired North American Natural Resources and its sister companies, North American Biofuels and North American-Central, for $135 million during the quarter. More high-return expansion prospects are emerging as the year goes on. The team, therefore, anticipate being in the middle of their $1 billion to $2 billion range, moving ahead or possibly even at the upper end. We give Kinder Morgan a ‘Hold’ rating.