Kinder Morgan Inc. (NYSE:KMI)

The financial data reveals several notable trends over the analyzed periods. Revenue demonstrated a general upward trajectory from 2010 to 2014, reaching a peak in 2014. However, after 2014, revenues experienced a decline and showed fluctuations without a consistent growth pattern through 2019.

Operating income followed a somewhat similar pattern but with more pronounced volatility. There was a strong increase from 2010 to 2014, peaking in 2014 at a significantly higher level than the starting point. After a sharp decline in 2015, operating income rebounded and showed irregular movements, ultimately achieving the highest value observed in 2019.

Net income attributable to the company displayed considerable variability. The figure shifted from a negative value in 2010 to positive in 2011, followed by considerable fluctuations in subsequent years. Notably, net income peaked in 2013 and then saw a marked decrease, with periods of moderate recovery and some declines, culminating in the highest recorded value in 2019 since the start of the data series.

Revenues

Overall upward trend until 2014, followed by a decline and fluctuating values through 2019.

Operating Income

Strong growth to 2014, sharp drop in 2015, then irregular increases finishing at a record high in 2019.

Net Income

Highly variable with initial losses, recovery and peaks in 2013 and 2019, and notable declines in intervening years.

The analysis of the financial data reveals significant variation in the current assets and total assets over the period from 2010 to 2019.

Current assets

The current assets exhibit fluctuations throughout the years. Starting at 1,787 million USD in 2010, they decreased slightly in 2011 to 1,663 million USD. A notable increase is observed in 2012 and 2013, reaching 3,674 million USD and 3,868 million USD respectively. After a relatively stable period around 3,700 million USD in 2014, current assets sharply declined to 2,824 million USD in 2015. A mild recovery occurred in 2016 (3,229 million USD), followed by another decrease in 2017 (2,715 million USD). In 2018, current assets surged to their highest value in the decade at 5,722 million USD but fell back to 3,238 million USD in 2019. This pattern indicates volatility within short-term asset liquidity, suggesting potential fluctuations in working capital management or operational needs.

Total assets

The total assets show a general upward trend with some periods of decline. Beginning at 28,908 million USD in 2010, total assets increased modestly to 30,717 million USD in 2011. A major increase occurred in 2012, reaching 68,185 million USD, and this trend continued through to 2014 with total assets peaking at 83,198 million USD. Between 2015 and 2017, total assets remained relatively stable, with slight decreases noted each year, moving from 84,104 million USD in 2015 to 79,055 million USD in 2017. The total assets remained fairly consistent around 78,800 million USD in 2018 and decreased to 74,157 million USD in 2019. This pattern suggests significant asset growth during the early part of the period, followed by stabilization and modest decline in later years, which could reflect asset disposals, depreciation, or strategic restructuring.

Overall, the data indicate a period of rapid asset expansion in the early 2010s, followed by more cautious asset management and fluctuating current assets in the latter half of the decade.

The financial data over the examined periods reveals several notable trends in the liability and equity structure. Current liabilities exhibited a general upward trajectory from 2010 to 2014, increasing from $3,644 million to $6,362 million, before experiencing a decline in 2015 to $4,065 million. Subsequent years showed volatility and increases again, peaking at $7,557 million in 2018 and then falling back to $5,100 million by the end of 2019. This fluctuation may indicate strategic changes in short-term obligations or working capital management.

Total liabilities expanded significantly from 2010 through 2014, nearly doubling from $20,369 million to $48,772 million. From 2015 onward, total liabilities gradually decreased each year, reaching $39,268 million in 2019. This reduction suggests a concerted effort to deleverage or manage overall debt levels more conservatively after the peak period.

Long-term debt, including the current portion, closely mirrored the total liabilities pattern, showing a substantial increase from 2010 through 2014, rising from $15,826 million to $42,963 million. After 2014, long-term debt reduced steadily to $34,392 million by 2019. The parallel movement between total liabilities and long-term debt indicates that long-term borrowing constitutes the majority of the liabilities, and changes in financing strategy heavily influence the company’s leverage position.

Stockholders’ equity experienced a dramatic increase starting in 2012, jumping from $3,321 million in 2011 to $13,865 million in 2012, and continuing a robust growth to $34,076 million by 2014. From 2014 onward, equity levels remained relatively stable, fluctuating slightly around the $33,000 to $35,000 million range through 2019. This upward step change from 2012 suggests an equity infusion or revaluation event that strengthened the capital base considerably, providing a more solid financial foundation.

In summary, the company went through a phase of significant liability growth until 2014, coupled with a substantial increase in equity. Post-2014, both liabilities and debt levels were actively reduced, while equity stabilized at a high level, implying improved financial stability and potentially reduced financial risk.

Current Liabilities

Increased initially, peaked in 2018, followed by a notable decline in 2019.

Total Liabilities

More than doubled by 2014, then steadily declined through 2019.

Long-term Debt

Followed a trend similar to total liabilities, with peak levels in 2014 and reduction thereafter.

Stockholders’ Equity

Experienced a significant increase starting in 2012, maintaining stability at elevated levels afterward.

Net cash provided by operating activities

There is an overall upward trend in net cash provided by operating activities from 2010 through 2019, indicating improving operational cash flow generation over the period. Starting at $1,911 million in 2010, the figure peaks at $5,303 million in 2015. After 2015, the value fluctuates moderately but remains relatively high, ranging between approximately $4,600 million and $5,000 million through to 2019. This pattern reflects enhanced operational efficiency or increased revenue generation in the mid-decade, followed by stabilization at a strong level.

Net cash used in investing activities

Cash outflows from investing activities consistently represent a major use of funds throughout the decade. The amounts are negative in every year, signifying ongoing investment spending. The largest outflows are observed in years such as 2012, 2014, and 2015, with peaks at -$5,084 million, -$5,210 million, and -$5,706 million respectively. There is a marked reduction in investing outflows in 2018, dropping to -$68 million, which is a significant departure from prior years. However, in 2019 the outflows increase again to -$1,714 million. This variability suggests fluctuating capital expenditure or acquisition activities, with a possible slowdown or completion of major investments by 2018 followed by resumption in 2019.

Net cash provided by (used in) financing activities

Financing activities exhibit high volatility and a notable shift over the decade. In 2010, net cash inflows from financing were $711 million, but this quickly turns negative or fluctuates in the following years. The highest inflow occurs in 2012, at $2,584 million, likely reflecting capital raising events. From 2016 onwards, there is a clear trend of net cash outflows related to financing activities, with increasingly large negative values reaching -$6,185 million by 2019. This pattern suggests a strategic deleveraging, increased debt repayment, dividend payments, or share buybacks as the company appears to reduce external financing reliance in the latter part of the period.

Earnings Per Share (Basic and Diluted)

Both basic and diluted earnings per share exhibited a fluctuating trend over the analyzed period. Starting with a negative value of -0.05 US$ at the end of 2010, earnings per share improved significantly in 2011, reaching approximately 0.69-0.71 US$. From 2011 to 2013, the earnings increased sharply, peaking at 1.15 US$ in 2013. Subsequently, there was a decline, with earnings falling to 0.1 US$ in 2015. The figures then showed modest recovery, reaching a low point of 0.01 US$ in 2017, followed by an increase to 0.66 US$ in 2018 and further growth to 0.96 US$ in 2019. The general pattern indicates volatility with pronounced dips after peak years and partial recovery towards the end of the period.

Dividend Per Share

Dividend per share was not reported in 2010 but started at 1.05 US$ in 2011. There was a steady increase over the next three years, rising to 1.4 US$ in 2012, 1.6 US$ in 2013, and peaking at 1.74 US$ in 2014. After this peak, dividends declined to 1.61 US$ in 2015 and dropped sharply to 0.5 US$ in both 2016 and 2017. In the final two years of the period, dividends per share began to recover, increasing to 0.8 US$ in 2018 and 1 US$ in 2019. Overall, the dividend trend shows initial growth, a significant reduction mid-period, and a partial resurgence by the end of the term.

Insights

The earnings per share and dividends per share demonstrate a degree of correlation in their movements, although earnings were more volatile. The decline in dividend payments following the 2014 peak aligns with reduced earnings during 2015 to 2017, suggesting a cautious approach to dividend distribution amidst earnings uncertainty. The recovery in earnings from 2017 onwards is reflected in the increased dividends in the last two years, indicating an improvement in financial performance and a gradual restoration of shareholder returns.