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Pipeline and terminal operator Kinder Morgan (NYSE:KMI) reiterated its annual profit outlook on Wednesday, anticipating significant growth in natural gas demand by 2030. With operations spanning approximately 79,000 miles of pipelines, the company foresees a surge in electric demand, particularly from burgeoning data centers supporting AI technologies. Based in Houston, Texas, Kinder Morgan remains optimistic about natural gas demand, citing factors like LNG export facilities and increased exports to Mexico.

Despite a 20.4% decline in natural gas prices during the first quarter of 2024 compared to the previous year, analysts, including Stephen Ellis from Morningstar, highlight the potential for a 7-16 bcf/d increase in gas demand by 2030 due to AI demand. Reaffirming its 2024 profit forecast at $1.22 per share, Kinder Morgan attributes this stability to its acquisition of NextEra Energy (NYSE:NEE) Partners’ STX Midstream assets. Additionally, the company met first-quarter profit estimates, buoyed by higher volumes in its natural gas pipelines segment, including increased margins from storage assets and gathering systems, further bolstered by the STX Midstream acquisition.

Kinder Morgan’s adjusted core profit from the natural gas pipeline segment rose to $1.52 billion from $1.43 billion a year earlier. Looking ahead, the company anticipates carrying lower debt levels, potentially leading to higher credit ratings and investor confidence. Reporting an adjusted profit of 34 cents per share for the January-to-March quarter, in line with estimates, Kinder Morgan also approved a 2% increase in its quarterly dividend.