Kinder Morgan’s profit & cash flow rise on Gulf Coast Express pipeline strength

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Kinder Morgan’s profit & cash flow rise on Gulf Coast Express pipeline strength

On Wednesday, the 22nd of January 2022, the Houston, Texas-based natgas pipeline company, Kinder Morgan had reported its quarterly profit for the fourth quarter of 2019 which had insanely beaten Wall St. forecasts, as the US-based natgas pipeline operator had reported a 26 per cent growth at its operating profit over the last quarter of 2019 following a rise in volume from the Permian Basin through its Gulf Coast Express pipeline.

In point of fact, the Gulf Coast Express pipeline came as a blessing for both gas field operators and the Houston-based natgas pipeline company as the pipeline having a capacity to transport up to 2 billion cubic foot of natgas per day came into being on September last year amid a caustic narrative for the shale-rich Permian Basin where the drillers had been burning gas at a record rate because of a lack in transportation.

Meanwhile, as the US pipeline operator had posted an operating profit of $1.35 billion or $0.59 per share on Q4, 2020, up about 20 per cent from a figure of 50 cents per share a quarter earlier and 6 per cent on a year-on-year basis, Kinder Morgan Chief Executive, Steven Kean said to the reporters at a post-earnings’ call on Wednesday (January 22nd), that the Houston-based pipeline operator had been brewing an option to develop a third natgas pipeline for the Permian Basin.

On top of that, followed by the reveal of an upbeat quarterly earnings’ report of the pipeline operator, shares of Kinder Morgan soared as much as 4.25 per cent to $21.85 per share on Thursday’s (January 23rd) pre-market trading.