Name: Kinder Morgan Inc. (NYSE:KMI) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Kinder Morgan Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Services	8,198)	7,955)	7,885)	—)	—)
Commodity sales	4,811)	5,987)	5,654)	—)	—)
Other	200)	202)	166)	—)	—)
Natural gas sales (legacy)	—)	—)	—)	2,454)	2,839)
Services (legacy)	—)	—)	—)	8,146)	8,290)
Product sales and other (legacy)	—)	—)	—)	2,458)	3,274)
Revenues	13,209)	14,144)	13,705)	13,058)	14,403)
Costs of sales	(3,263)	(4,421)	(4,345)	(3,498)	(4,115)
Gross profit	9,946)	9,723)	9,360)	9,560)	10,288)
Operations and maintenance	(2,591)	(2,522)	(2,472)	(2,303)	(2,337)
Depreciation, depletion and amortization	(2,411)	(2,297)	(2,261)	(2,209)	(2,309)
General and administrative	(590)	(601)	(673)	(669)	(690)
Taxes, other than income taxes	(426)	(345)	(398)	(421)	(439)
Loss on impairment of goodwill	—)	—)	—)	—)	(1,150)
Gain (loss) on divestitures and impairments, net	942)	(167)	(13)	(387)	(919)
Other income (expense), net	3)	3)	1)	1)	3)
Operating income	4,873)	3,794)	3,544)	3,572)	2,447)
Earnings (loss) from equity investments	101)	617)	428)	(113)	384)
Amortization of excess cost of equity investments	(83)	(95)	(61)	(59)	(51)
Interest, net	(1,801)	(1,917)	(1,832)	(1,806)	(2,051)
Other, net	75)	107)	82)	44)	43)
Other income (expense)	(1,708)	(1,288)	(1,383)	(1,934)	(1,675)
Income before income taxes	3,165)	2,506)	2,161)	1,638)	772)
Income tax expense	(926)	(587)	(1,938)	(917)	(564)
Net income	2,239)	1,919)	223)	721)	208)
Net (income) loss attributable to noncontrolling interests	(49)	(310)	(40)	(13)	45)
Net income attributable to Kinder Morgan, Inc.	2,190)	1,609)	183)	708)	253)
Preferred stock dividends	—)	(128)	(156)	(156)	(26)
Net income available to common stockholders	2,190)	1,481)	27)	552)	227)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The financial performance from 2015 to 2019 is characterized by stable revenue streams and a consistent upward trajectory in operating income, despite significant volatility in net income resulting from non-recurring items.

Revenue and Gross Profitability: Total revenues remained relatively range-bound, fluctuating between 13.0 billion and 14.4 billion US$. A transition in reporting structure occurred in 2017, shifting from legacy categories to a breakdown of services, commodity sales, and other income. Services became the primary revenue driver, growing from 7.9 billion US$ in 2017 to 8.2 billion US$ in 2019. Gross profit followed a similar pattern of stability, ending the period at 9.9 billion US$ in 2019 after a slight dip in 2017.
Operating Expense Trends: Operating income showed a strong growth trend, increasing from 2.4 billion US$ in 2015 to 4.9 billion US$ in 2019. This growth was supported by a reduction in general and administrative expenses, which declined from 690 million US$ to 590 million US$. While operations and maintenance costs and depreciation, depletion, and amortization expenses rose slightly over the five-year period, they were offset by improved cost of sales management, which dropped to 3.3 billion US$ in 2019.
Non-Recurring Items and Net Income Volatility: Net income attributable to Kinder Morgan, Inc. experienced significant fluctuations. A notable low occurred in 2015, influenced by a 1.15 billion US$ loss on impairment of goodwill and a 919 million US$ loss on divestitures. Recovery was observed by 2019, where net income reached 2.2 billion US$, bolstered by a 942 million US$ gain on divestitures and impairments. Interest expenses remained relatively stable, averaging between 1.8 billion and 2.1 billion US$ annually.
Returns to Common Stockholders: Net income available to common stockholders exhibited a sharp increase in the latter half of the period. After a significant drop to 27 million US$ in 2017, this figure surged to 2.2 billion US$ by 2019. This acceleration was driven by both the increase in overall net income and the cessation of preferred stock dividends by the end of 2019.

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