Latest news with #SouthSystemExpansion4
Yahoo
17-04-2025
- Business
- Yahoo
Enstor receives FERC approval for Mississippi Hub expansion
Emerald Storage Holdings, the parent company of Enstor Gas and its subsidiary Mississippi Hub, has received approval from the Federal Energy Regulatory Commission (FERC) to expand its Mississippi Hub natural gas storage facility. Enstor has accepted the FERC certificate, marking a significant milestone for the Mississippi Hub Expansion Project, which is expected to be operational by 2028. The FERC order, issued on 20 March 2025, also grants Mississippi Hub the authority to charge market-based rates for its storage, hub and wheeling services. The project will add three new storage caverns, each with around ten billion cubic feet (bcf) of working storage capacity, along with enhancements to existing caverns. Enstor CEO Paul Bieniawski said: 'We are pleased to have received FERC's approval for our Mississippi Hub Expansion Project and look forward to moving ahead with construction. 'This expansion project will not only enhance reliability and flexibility for our customers in the Gulf Coast and south-east markets, but it will also provide significant additional natural gas storage capacity at a time when it is needed most. 'With US LNG exports rapidly expanding and the demand for gas-fired power generation continuing to grow nationwide, Enstor is excited to be on the forefront of providing the critical infrastructure necessary to ensure reliable energy security for the US and beyond.' The expansion involves constructing compression, dehydration, saltwater disposal wells and related facilities. In total, the project will add up to 33.5bcf of new working gas capacity and 700,000 dekatherms per day of new injection capacity. Upon completion, the facility's total working gas storage capacity will reach 56.3bcf. The first new cavern is fully subscribed under a long-term contract with a Kinder Morgan subsidiary, serving growing demand from liquefied natural gas exports and power generation. Mississippi Hub connects with Southern Natural Gas, Southeast Supply Header and the Transcontinental Gas Pipeline, enhancing its strategic market reach. KMI East Region chief commercial officer Ernesto Ochoa said: 'Expansion projects under way for the south-east region, including Evangeline Pass, Mississippi Crossing and the South System Expansion 4 projects, are the direct result of significant natural gas demand expectations for the near future. With growing natural gas demand, there is a need for additional storage in this region. 'During times of volatile natural gas pricing or for operational flexibility, storage provides customers with optionality. Additional storage coupled with our extensive network further enhances the services we can provide our customers.' Enstor anticipates positive regional impacts including job creation, economic development and increased tax revenues. The project aims to minimise environmental impacts by utilising existing infrastructure and enhancing energy security and price competitiveness for customers. "Enstor receives FERC approval for Mississippi Hub expansion" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-02-2025
- Business
- Yahoo
Don't Let This Dividend Stock's High Yield Fool You. It Has the Fuel to Deliver High-Octane Growth Through 2030.
A high dividend yield often indicates that a company's growth days are in the rearview mirror. Without a lot of attractive investment opportunities, these companies return a significant percentage of their cash flow to investors by paying dividends. That used to describe Kinder Morgan (NYSE: KMI). However, the narrative surrounding the high-yielding natural gas pipeline giant has dramatically changed over the past year. It expects natural gas demand to surge by 2030, which should fuel high-octane earnings growth in the coming years. It currently yields 4.3%, but it could also have the fuel to produce strong total returns. Natural gas industry experts predict that demand will surge over the coming years. Analysts at Wood Mackenzie anticipate that natural gas demand will increase by 20 billion cubic feet per day (Bcf/d) by 2030 from last year's level of 110 Bcf/d. Several factors fuel that view, including growing export demand for liquefied natural gas and to Mexico, rising power demand, and expanding industrial, commercial, and residential demand. Kinder Morgan is even more bullish. It projects that gas demand will increase by 28 Bcf/d by 2030, driven primarily by a much more optimistic view of power demand. The company sees catalysts like coal-to-gas conversions, industrial reshoring, renewable energy backup power, and data center demand driving significantly more incremental gas demand than Wood Mackenzie and others currently forecast. One factor fueling its more optimistic view is what it's seeing from customers. Kinder Morgan operates the country's largest natural gas transmission network. It moves 40% of all the gas produced and controls 15% of the natural gas storage capacity, and customers are coming to it to help them meet their power needs, which are far greater than most current gas projections. Kinder Morgan is already starting to capitalize on the surge in gas demand. Over the past few months, it has secured enough commercial contracts with customers to approve about $5 billion in new large-scale natural gas pipeline projects. As a result, the company now has about $8.1 billion of total expansion projects in its backlog, $7.2 billion of it related to natural gas. That's a 60% increase from the $5.1 billion of projects in its backlog at the end of the third quarter. It's even higher from the end of 2023, when it had $3 billion worth of projects, and 2021, when it had only $1.4 billion of projects. South System Expansion 4 (SSE4), Trident, and Mississippi Crossing, the company's three large-scale natural gas pipeline projects, will each cost more than $1.6 billion. They'll have capacities ranging from 1.2 Bcf/d at SSE4 to 2.1 Bcf/d at Mississippi Crossing, and they'll have in-service dates running from the first quarter of 2027, for Trident, through the end of 2029, for SSE4. They will help fuel significant earnings growth for the company in the back half of this decade. These projects are only the beginning. Kinder Morgan is currently pursuing more than 5 Bcf/d of additional natural gas capacity projects related to power demand alone. That demand growth will drive more capacity expansion opportunities downstream to gather and process natural gas from newly drilled wells and transport it out of the production basins. Kinder Morgan's growing list of projects should fuel accelerated earnings growth in the coming years. The company currently expects to increase its adjusted earnings per share by more than 10% this year, driven in part by the $1.2 billion of projects it placed into service last year and the $2.1 billion it's on track to finish in 2025. The pace of the company's project completions is on track to accelerate in the coming years as it finishes those three major gas pipeline expansions and other projects it will undoubtedly approve in the future. The company's surging earnings should give it the power to continue increasing its high-yielding dividend. Kinder Morgan expects to provide its investors a modest 2% raise this year, marking its eighth straight year of dividend growth. Its dividend growth rate could be much higher in the future as it cashes in on surging gas demand. Kinder Morgan is about to hit a growth spurt. The natural gas pipeline giant is capitalizing on growing gas demand, which is providing it with lots of opportunities to expand its leading natural gas infrastructure position. Those projects should fuel a surge in its cash flow, giving the company more money to pay dividends. That combination of a high-yielding income stream and high-octane earnings growth could give Kinder Morgan the power to produce robust total returns in the coming years. It looks like a compelling stock to buy and hold for the long haul. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $346,349!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $43,160!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $554,176!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 3, 2025 Matt DiLallo has positions in Kinder Morgan. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy. Don't Let This Dividend Stock's High Yield Fool You. It Has the Fuel to Deliver High-Octane Growth Through 2030. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
30-01-2025
- Business
- Yahoo
Kinder Morgan Announces the Advancement of $1.7B Gas Pipeline in Texas
Kinder Morgan KMI, a Houston-based midstream energy company, has announced that it will move forward with its $1.7 billion Trident Intrastate Pipeline project in Katy, TX. Once completed, this ambitious 216-mile pipeline will transport 1.5 billion cubic feet of natural gas per day to Port Arthur. The project is scheduled to go live by the first quarter of 2027, contingent upon securing the necessary permits and approvals. CEO Kim Dang highlighted that the pipeline's development is strongly connected to the increasing energy needs of Texas's growing AI data center sector, which has been a significant driver for the project. Kinder Morgan has already secured long-term contracts for the pipeline and two other major natural gas projects — South System Expansion 4 and Mississippi Crossing — with a combined projected cost of around $5 billion. In its commitment to responsible development, Kinder Morgan highlighted that the Trident Intrastate Pipeline project is backed by long-term contracts. Additionally, the company is working closely with impacted landowners to address concerns regarding the pipeline's route and construction. The Trident project is part of a broader trend in Texas, where several energy infrastructure developments are being announced. Last month, Energy Transfer approved the final investment decision for the Hugh Brinson Pipeline, which will deliver 2.2 billion cubic feet per day of natural gas to the Dallas-Fort Worth area. Similarly, WhiteWater Midstream revealed plans for a 2.5 billion cubic feet per day pipeline linking the Permian Basin to a gas hub near Corpus Christi. These projects reflect the increasing demand for natural gas in Texas and the ongoing efforts to expand the state's energy infrastructure. As Kinder Morgan advances with the Trident pipeline, the company is positioning itself to meet the future energy needs of both industrial growth and the digital economy, reinforcing Texas' role as a critical player in the U.S. energy landscape. Kinder Morgan currently carries a Zacks Rank #2 (Buy). Investors interested in the energy sector may look at some other top-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company's attractive oil and gas investments should create long-term value for shareholders. Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio. Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company's extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas's role as a clean-burning fuel amid a low-carbon shift. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Range Resources Corporation (RRC) : Free Stock Analysis Report Sunoco LP (SUN) : Free Stock Analysis Report SM Energy Company (SM) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research
Yahoo
29-01-2025
- Business
- Yahoo
Artificial Intelligence (AI) and More Give Kinder Morgan a Robust Backlog. Is the Stock a Buy?
Kinder Morgan (NYSE: KMI) recently reported solid fourth-quarter results and issued 2025 guidance. However, most notable from the report was the increasing project backlog the company was seeing as a result of natural gas demand coming for LNG (liquefied natural gas) exports, power plants, and artificial intelligence (AI). Let's look at the pipeline company's most recent results and guidance to see if this is a good time to buy the stock. One of the biggest things to come out of Kinder Morgan's latest earnings report was the company's growing project backlog. Its project backlog increased a whopping 60% compared to its third quarter, going from $5.1 billion to $8.1 billion. Projects related to natural gas accounted for 89% of its backlog. In expects the EBITDA multiple on most of its projects (those not associated with carbon dioxide enhanced oil recovery) to be 5.8 times. This means that for every $100 million it spends, it expects to generate an incremental $17.24 million in EBITDA from these projects. Midstream projects are often done between 6x to 8x EBITDA multiples, so this is a very solid expected return on these projects. Kinder Morgan highlighted three big natural gas projects it has recently secured: South System Expansion 4, Mississippi Crossing, and the Trident Intrastate Pipeline. The company said it is very well positioned for the trends driving natural gas volumes, with it serving 45% of the LNG export demand, 50% of natural gas exports to Mexico, and 45% of the power demand in the desert Southwest, Texas, and Southeast regions. It also noted that we are still in the very early innings of AI data centers and the power needed for them. It sees natural gas demand in the U.S. rising by 28 billion cubic feet (BCF) a day by 2030. This projection is very similar to the 28.5 BCF a day increase that natural gas producer Antero Resources recently provided. While U.S. natural gas consumption has gradually been increasing, these projections are close to doubling recent consumption within five years, which would be an enormous increase. Turning to its results, Kinder Morgan's adjusted earnings per share (EPS) jumped 14% to $0.32. That was just below analyst expectations for EPS of $0.34. It adjusted EBITDA, meanwhile, rose 7% to $2.06 billion. Its distributable cash flow (DCF), which is operating cash flow minus maintenance capital expenditures (capex), climbed by 8% to $1.26 billion. Its DCF per share rose 10% to $0.57. Adjusted EBITDA and DCF are two of the most common metrics used to evaluate midstream companies. Kinder Morgan declared a dividend of $0.2875 per share, a 2% increase compared to a year ago. Its forward yield is about 3.8%. For the year, it generated free cash flow of after dividend payments of $449 million, so the dividend is well covered. The company ended the year with leverage (net debt divided by trailing-12-month adjusted EBITDA) of 4 times. That is within the typical 3 times to 4.5 times range for midstream companies, and its own leverage target of 3.5 times to 4.5 times. Looking ahead, Kinder Morgan forecasts a 4% increase in adjusted EBITDA to $8.3 billion and a 10% jump in adjusted EPS to $1.27. It is looking to reduce its leverage to 3.8 times by year-end while increasing its dividend by 2% to $1.17 for the year. The guidance does not include its recently announced $640 million Outrigger Energy II acquisition to expand its footprint in the Bakken oil formation. It said the acquisition was being done at a multiple of 8 times 2025 expected EBITDA, which would be about $80 billion if it owned it for the entire year. Moving forward, Kinder Morgan plans to now spend $2.5 billion a year in growth capex over the next several years, up from a prior budget of $2 billion. Kinder Morgan's Q4 results and guidance were generally solid, but it is its strong project backlog and expected return on these projects that is exciting. The industry is expecting huge natural gas demand over the next several years, and Kinder Morgan is well positioned to take advantage of these increased volumes. In addition to increasing demand in the in the U.S. stemming from AI data centers, there is also huge demand to export natural gas to Mexico and to ship it overseas as well. Kinder Morgan has strong ties to the Texas utility market and also has pipelines near Abilene, Texas, which will be the first data center site of the proposed $500 billion Stargate AI data center project. As such, it is in a good spot to be an AI winner, as Texas appears to be at the heart of the AI data center buildout given its proximity to cheap associated gas coming from the Permian basin. While the market was roiled Monday by DeepSeek, a new Chinese AI player whose model is said to be very cheap to train, there is still much not known about the accuracy of that claim, and I would not see this derailing U.S. AI projects based on speculation. From a valuation perspective, Kinder Morgan trades at an enterprise value-to-EBITDA ratio of just over 11 times. That's below where midstream companies have traded at in the past and is an attractive valuation given the growth opportunities in front of the company. As such, Kinder Morgan is a solid stock to consider at current levels. Before you buy stock in Kinder Morgan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kinder Morgan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $725,740!* Now, it's worth noting Stock Advisor's total average return is 894% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list. Learn more » *Stock Advisor returns as of January 27, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy. Artificial Intelligence (AI) and More Give Kinder Morgan a Robust Backlog. Is the Stock a Buy? was originally published by The Motley Fool Sign in to access your portfolio
