Kinder Morgan Inc - Class P
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.43%.
Did KMI Beat Earnings? Q2 2025 Results
Kinder Morgan delivered a strong second-quarter performance, with adjusted EPS of $0.28 beating the $0.27 consensus by 3.09% and revenue of $4.04 billion clearing estimates by 7.85% on 12.4% year-over-year growth, as the company benefited from surging demand across its natural gas network. The primary engine behind the beat was the Natural Gas Pipelines segment, where adjusted EBDA climbed to $1.35 billion from $1.22 billion a year ago, driven by higher contributions from the Texas Intrastate system and Tennessee Gas Pipeline, with LNG-linked transport volumes rising 3%. GAAP net income attributable to KMI jumped 24% year-over-year to $715 million, while the company generated $1.65 billion in cash flow from operations. The project backlog grew 6% sequentially to $9.30 billion, with 93% tied to natural gas, reflecting robust demand from LNG export facilities and power generation customers. Management expects to exceed its 2025 budget, which targets adjusted EPS of $1.27, and anticipates meaningful tax benefits in 2026 and 2027 from reinstated bonus depreciation under recently passed legislation.
- Higher contributions from Texas Intrastate system and Tennessee Gas Pipeline
- Natural gas transport volumes up 3% driven by LNG deliveries
- Jones Act tanker fleet benefiting from higher rates and full term charter contracts
- Liquids terminals expansion projects and higher rates at Houston Ship Channel facilities
- Refined products and crude/condensate volumes both up 2%
“The company generated strong second quarter net income attributable to KMI and record Adjusted EBITDA, with increased financial contributions from our Natural Gas Pipelines and Terminals business segments versus the second quarter of 2024, very strong operational performance and project execution.”
Kinder Morgan CEO, on the earnings call
Forward Guidance & Outlook
KMI expects to exceed its 2025 budget by at least the amount of contributions from the Outrigger Energy II acquisition closed in Q1 2025. The 2025 budget calls for net income attributable to KMI of $2.8 billion (up 8% vs. 2024), Adjusted EPS of $1.27 (up 10%), Adjusted EBITDA of $8.3 billion (up 4%), dividends of $1.17 per share (up 2%), and ending Net Debt-to-Adjusted EBITDA ratio of 3.8x. Budget assumptions include WTI crude at $68/barrel and Henry Hub gas at $3.00/MMBtu. The company expects favorable tax benefits from the recently passed budget reconciliation bill through reinstated bonus depreciation and greater interest expense deductibility, with meaningful benefits in 2026 and 2027. Tariffs are estimated to impact roughly 1% of project costs on larger projects.
KMI YoY Financials
KMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.