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Kinder Morgan’s 4Q14 earnings fall short of estimates

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Quarterly adjusted revenues fall short of estimates

Kinder Morgan (KMI) released its financial information for 4Q14 and full-year 2014 on January 21, 2015. Other energy midstream companies that have released 4Q14 results include Williams Companies (WMB), Spectra Energy (SE), and DCP Midstream (DPM). Spectra Energy makes up 2.03% of the Energy Select Sector ETF (XLE). In this article, we’ll discuss Kinder Morgan’s 4Q14 earnings and revenues versus estimates.

Between 3Q12 and 4Q14, Kinder Morgan’s adjusted revenues increased 38%. From 4Q13 to 4Q14, revenues increased by 2%.

As noted in the graph above, Kinder Morgan’s (KMI) adjusted revenues exceeded estimates in most of the quarters in the past. In 4Q14, however, adjusted revenues fell short of estimates by ~7%. On average, adjusted revenues have exceeded consensus revenues by ~4% in the past ten quarters.

The 1Q15 consensus sell side analysts’ adjusted revenues estimate for Kinder Morgan (KMI) is $4.49 billion, ~14% higher than the $3.95 billion it recorded in 4Q14.

Between 3Q12 and 4Q14, Kinder Morgan’s adjusted earnings per share (or EPS) have decreased 21%. Adjusted EPS decreased by 55% from 4Q13 to 4Q14.

As noted in the graph above, Kinder Morgan’s adjusted EPS fell short of estimates in some of the quarters in the past. In 4Q14, adjusted earnings fell short of estimates by 55%. On average, adjusted EPS have fallen short of consensus EPS by ~18% in the past ten quarters.

The 1Q15 consensus sell side analysts’ adjusted EPS estimate for Kinder Morgan is $0.231, 54% higher than the $0.15 per adjusted share it recorded in 4Q14.

Read the following section to find out about Kinder Morgan’s (KMI) 4Q14 financial results in greater detail.

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