Kinder Morgan Inc - Class P
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.54%.
Did KMI Beat Earnings? Q4 2024 Results
Kinder Morgan fell short of Wall Street expectations in the fourth quarter of 2024, posting adjusted EPS of $0.32 against a consensus estimate of $0.33, a miss of 2.71%, while revenue of $3.99 billion trailed the $4.14 billion estimate by 3.59%, though it still edged up 0.5% year-over-year. The headline story beneath the misses, however, was one of operational momentum: net income attributable to KMI climbed 12% to $667 million, with Adjusted EBITDA rising 7% to $2.06 billion, fueled by stronger contributions across Natural Gas Pipelines, Products Pipelines, and Terminals. The most material catalyst was the announcement of the $1.70 billion Trident Intrastate Pipeline Project, a 216-mile Texas corridor serving LNG export demand, which helped push KMI's capital backlog nearly 60% higher sequentially to $8.10 billion. With growing interest in natural gas infrastructure tied to power generation and data center demand, management guided 2025 Adjusted EBITDA to $8.30 billion and Adjusted EPS to $1.27, up 10%, signaling confidence that near-term execution gaps won't derail the longer-term growth trajectory.
- Higher contributions from Texas Intrastate system and TGP expansion projects
- Additional contributions from STX Midstream acquisition
- Higher rates on Products Pipelines and Jones Act tanker fleet
- Increased petroleum coke handling at bulk terminals
- Expansion projects placed into service at liquids terminals
“KMI had a very strong fourth quarter on increased financial contributions from our Natural Gas Pipelines, Products Pipelines and Terminals business segments, with Adjusted EBITDA up 7% versus the fourth quarter of 2023. Our balance sheet remains healthy, as we ended the year with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times.”
Kinder Morgan CEO, on the earnings call
Forward Guidance & Outlook
For 2025, KMI budgeted net income attributable to KMI of $2.8 billion (up 8% vs 2024), Adjusted EPS of $1.27 (up 10%), and Adjusted EBITDA of $8.3 billion (up 4%). The company expects to declare dividends of $1.17 per share (2% increase) and end 2025 with a Net Debt-to-Adjusted EBITDA ratio of 3.8 times. Budget assumes WTI crude at $68/barrel and Henry Hub natural gas at $3.00/MMBtu. These amounts do not include contributions from the Outrigger Energy II acquisition.
KMI YoY Financials
KMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.