Richard Kinder, the billionaire co-founder of Kinder Morgan, is not concerned by the ongoing U.S.-China trade tensions or the buzz around AI’s future energy consumption. Speaking on the company’s recent Q1 earnings call, Kinder dismissed worries over U.S.-China LNG tariffs and the supposed overstated energy needs of AI data centers.
“Our view is that any loss of the Chinese market will be more than offset by efforts from governments in the EU and Asia to increase imports of U.S. LNG,” Kinder stated. Essentially, he’s confident that no matter the tariff dispute, Kinder Morgan’s pipelines will keep moving.
The company’s Q1 results bolstered this outlook. Kinder Morgan reported an adjusted EBITDA of $2.16 billion, a modest 1% increase from last year. Net income came in at $717 million, and while total net income saw a slight dip year-over-year, adjusted net income rose to $766 million. The company also announced a 2% dividend hike for its shareholders.
On the topic of AI’s potential energy impact, Kinder Morgan was not swayed by reports suggesting that Chinese data centers use much less energy than their American counterparts. The company continues to focus heavily on the growing demand from AI, pointing to a pipeline backlog exceeding $8.8 billion, with 91% of that tied to natural gas projects. Key developments include major projects like the $1.6 billion Trident line and the $1.7 billion Mississippi Crossing system.
Kinder Morgan’s LNG contracts are already in place, with current transport capacity at 7 billion cubic feet per day (Bcf/d), expected to rise to 11 Bcf/d by 2027.
Despite skepticism about the energy forecasts for AI, Kinder Morgan remains confident in its strategy. CEO Kim Dang summed up the company’s approach, saying, “We continue to fund high-quality growth while maintaining a healthy balance sheet.”
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