Revenue growth was led by product sales and natural-gas services
Quarterly revenue increased $435M, or 11%, to $4.477B. Management attributed the increase primarily to a $422M rise in product sales from higher commodity prices and volumes, plus a $138M increase in services revenue from higher volumes and expansion projects placed in service, principally in Natural Gas Pipelines; these gains were partly offset by a $49M derivative impact and a $73M decline in natural-gas sales caused by lower prices. Source: 10-Q Item 2 MD&A, pp.34-35.
Operating income and adjusted EBITDA increased faster than revenue
Operating income rose $194M, or 17%, to $1.346B, while Adjusted EBITDA increased $227M to $2.199B. Management said higher earnings across all business segments were the primary drivers of the $202M increase in adjusted net income attributable to KMI and the Adjusted EBITDA improvement. Source: 10-Q Item 2 MD&A, pp.34, 37.
Natural Gas Pipelines benefited from higher volumes, expansions, and demand
Natural Gas Pipelines Adjusted Segment EBDA increased $114M to $1.461B. Midstream benefited from higher Texas intrastate volumes and demand, KinderHawk volumes, and Hiland acquired-asset performance; East benefited from completed expansion projects, lower maintenance costs, and weather-related demand. Source: 10-Q Item 2 MD&A, pp.39-40.