((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Recast of all conference call comments, analyst comments and stocks) by Vallari Srivastava
U.S. gas pipeline operator Kinder Morgan KMI.N said on Wednesday it remained optimistic about growth in natural gas demand driven by AI and data centers, although it narrowly missed expectations for Wall Street in terms of quarterly profit.
The pipeline operator also said it is moving forward with the Trident Intrastate Pipeline project, a 216-mile construction project that will deliver approximately 1.5 billion cubic feet per day (bcfd) of capacity to Katy, Texas, with natural gas liquefied and industrial corridor near Port Arthur.
Shares of the company rose 1.5% after the close of trading.
The project, announced just days after US President Donald Trump ended the moratorium on new LNG export permits, is expected to come online in the first quarter of 2027.
“Between LNG exports to Mexico, power and industrial growth, our internal number for growth in overall natural gas business is approximately 28 billion cubic feet per day by 2030,” Chief Executive Kim Dang said in a conference call with analysts.
-Nick Hummel, an analyst at Edward Jones, noted that Kinder Morgan has a very large number of natural gas pipelines, allowing it to take advantage of the growing demand for natural gas.
The company also expects to participate in growth opportunities arising from the private sector investment of up to $500 billion recently announced by US President Donald Trump to fund AI infrastructure, he said. -she declared during the teleconference.
“There are a lot of people who are going to go after (this opportunity),” added one executive.
However, fourth-quarter revenue fell to $3.99 billion from $4.04 billion last year due to lower volumes of crude and condensate transported through its pipelines, which fell by ‘around 5%.
Kinder Morgan’s adjusted earnings came in at 32 cents per share for the three months ending Dec. 31, just below analysts’ estimates of 33 cents per share, according to data compiled by LSEG.
