Kinder Morgan, Inc. (KMI) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 19, 2023 4:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Welcome to the Quarterly Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Today’s call is being recorded. If you have any objections, you may disconnect at this time.

I’ll now turn the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan.

Rich Kinder

Thank you, Ted. And as usual, before we begin, I’d like to remind you that KMI’s earnings release today and this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934, as well as certain non-GAAP financial measures.

Before making any investment decisions, we strongly encourage you to read our full disclosures on forward-looking statements and use of non-GAAP financial measures set forth at the end of our earnings release as well as review our latest filings with the SEC for important material assumptions, expectations, and risk factors that may cause actual results to differ materially from those anticipated and described in such forward-looking statements.

Now today, Steve, Kim and David will take you through the details, but we believe 2023 is off to a good start while in a company our size, there are always lots of moving parts. I think 2023 will be a solid year for KMI, and that with our capital expenditure program, we are positioning ourselves well for 2024 and beyond.

At both the Board and management level, we remain committed to transparency and utilizing our strong cash flow to benefit our shareholders by maintaining a strong balance sheet, funding capital projects that produce returns well in excess of our cost of capital, paying a healthy and growing dividend, which by the way, in terms of yield, is one of the top 10 in the S&P 500 and repurchasing our shares on an opportunistic basis.

In addition, through our investments in renewable natural gas, renewable diesel, and carbon capture and sequestration facilities, we are participating in the transition to cleaner energy.

Let me conclude by reiterating our view, consistent with that of most energy experts worldwide, that fossil fuels will supply the great majority of the planet's energy needs for decades to come. For example, the recent IEA World Energy Outlook predicts that fossil fuels will supply 62% of the world's energy demand in 2050. And just this week, our Assistant Secretary of Energy stated that given the current state of events and I quote, “the world absolutely needs new gas investment”.