Kinder Morgan (NYSE:KMI), one of the largest energy infrastructure players in North America, has revealed its high dividends expectations for 2022.
So far, the company’s shareholders have already been enjoying high yields of 7%, which is roughly 5 times that of the S&P 500 Index.
Kinder Morgan’s dividends have been increasing steadily since 2018, including also a hike during the start of the pandemic in 2020, while other energy majors like Shell and BP cut their dividends to save money.
And just recently, the energy infrastructure giant unveiled its preliminary expectations for the coming year, including also a dividend of $1.11 a share.
And there are plenty of good reasons for these expectations to pan out.
Kinder Morgan has been at the forefront of the energy transition and has been actively adopting new means of advancing that transition.
Last year, for example, the company acquired a renewable natural gas (RNG) producer and is venturing into green hydrogen and carbon capture investment opportunities.
The energy infrastructure firm already has expertise in CO2-based enhanced oil recovery and boasts an extensive carbon transportation network.
Its involvement in RNG was a logical step for Kinder Morgan as an immediate low-carbon solution, as the company’s vice president Anthony Ashley pointed out, because it allows the utilization of existing natural gas infrastructure.
Furthermore, Ashley is convinced that carbon capture technology will play a key role in the global energy transition, as well as in the fight against climate change.
And hence, the company will be heavily focused on developing carbon capture and sequestration (CCS) solutions, whereas the longer-term outlook for the next decade or so is to develop hydrogen that can potentially be blended in natural gas pipelines.
In addition, to strengthen its pipeline operations for years to come, this month, Kinder Morgan signed an agreement with big data analytics specialist and tech giant Palantir.
The partnership will see Kinder Morgan using Palantir’s groundbreaking data integration software platform, Foundry, to boost the safety and efficiency of its storage operations in the US.