Kinder Morgan Inc - Class P
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +12.62%.
Did KMI Beat Earnings? Q1 2025 Results
Kinder Morgan delivered a mixed first quarter for 2025, beating on revenue while falling short on the bottom line, as a 10.6% year-over-year revenue surge to $4.24 billion cleared the $4.03 billion consensus by 5.34%, yet adjusted EPS of $0.34 came in 4.84% below the $0.36 estimate. The shortfall was partly shaped by a planned once-per-decade turnaround at the Houston Ship Channel condensate processing facility, which weighed on the Products Pipelines segment and pulled adjusted EBDA there down to $274 million from $291 million a year ago. Offsetting that drag, the Natural Gas Pipelines segment, KMI's core earnings engine, held firm at $1.53 billion in adjusted EBDA, lifted by stronger LNG and power plant deliveries that grew transport volumes 3%. The company also closed its $640 million Outrigger Energy II acquisition and expanded its project backlog nearly 8% to $8.80 billion, a figure that underscores the growing infrastructure demand that analysts across the midstream sector have been watching closely. Management maintained its 2025 adjusted EPS budget of $1.27, noting it expects to exceed that target by at least the Outrigger contributions.
- Higher contributions from Texas Intrastate system and Tennessee Gas Pipeline
- Natural gas transport volumes up 3% driven by LNG and power plant deliveries
- Jones Act tanker fleet benefiting from higher rates and full term charter contracts
- Higher renewable natural gas sales volumes in CO2 segment
- Total refined product volumes up 2% and crude/condensate volumes up 4%
- Residential/commercial natural gas demand up 10% and LNG feedgas demand up 15% YoY
“The company enjoyed a solid quarter, with very strong operational performance and increased financial contributions from our Natural Gas Pipelines, CO2 and Terminals business segments versus the first quarter of 2024. Our Products Pipelines business segment was down mostly due to a turnaround at our condensate processing facility, which is required once every 10 years.”
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% from 2024), dividends of $1.17 per share (2% increase), Adjusted EBITDA of $8.3 billion (up 4% vs 2024), and expects to end 2025 with a Net Debt-to-Adjusted EBITDA ratio of 3.8 times. These amounts exclude contributions from the Outrigger Energy II acquisition, and the company expects to exceed budget by at least the contributions from that acquisition. Budget assumes average annual WTI crude oil price of $68/barrel and Henry Hub natural gas price of $3.00/MMBtu. Management sees potential U.S. natural gas demand growth of 20-28 Bcf/d by end of decade. The company is actively pursuing well over 5 Bcf/d of opportunities in natural gas power generation. At this point, tariffs are not expected to have a significant impact on project economics due to early mitigation efforts.
KMI YoY Financials
KMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.