Kinder Morgan Inc - Class P
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.45%.
Did KMI Beat Earnings? Q3 2025 Results
Kinder Morgan delivered a mixed third quarter for 2025, beating revenue expectations while falling just short on earnings, as robust natural gas pipeline activity drove top-line momentum but adjustments weighed on the bottom line. The Houston-based midstream giant posted adjusted EPS of $0.29, missing the $0.30 consensus by 2.85%, even as revenue climbed 12.8% year over year to $4.15 billion, clearing the $3.96 billion estimate by 4.67%. The primary growth engine was the Natural Gas Pipelines segment, where adjusted EBDA rose to $1.40 billion from $1.27 billion a year earlier, fueled by stronger contributions from the Texas Intrastate system, Tennessee Gas Pipeline, and assets acquired through the Outrigger Energy deal closed earlier this year. Natural gas transport volumes grew 6% on LNG deliveries and new expansion contracts, while gathering volumes jumped 9%. Adjusted EBITDA reached $1.99 billion, up 6% year over year. Looking ahead, management expects to exceed its full-year 2025 budget, targeting adjusted EPS of $1.27 and adjusted EBITDA of $8.30 billion, with a $9.30 billion project backlog weighted roughly 90% toward natural gas underpinning longer-term growth.
- Higher contributions from Texas Intrastate system and Tennessee Gas Pipeline (TGP)
- Contributions from Outrigger Energy assets acquired in Q1 2025
- Natural gas transport volumes up 6% driven by LNG deliveries on TGP, new expansion contracts, and increased Permian deliveries
- Natural gas gathering volumes up 9% driven by Haynesville and Eagle Ford systems
- Higher transport rates in Products Pipelines
- Jones Act tanker fleet benefiting from higher rates and fully contracted term charter agreements
- CO2 segment down due to lower crude and CO2 volumes, lower CO2 and D3 RIN prices
“The company generated strong third quarter net income attributable to KMI and Adjusted EBITDA, with increased financial contributions from our Natural Gas Pipelines, Products Pipelines, and Terminals business segments versus the third quarter of 2024, along with very strong operational performance and project execution.”
Kinder Morgan CEO, on the earnings call
Forward Guidance & Outlook
KMI expects to exceed its 2025 budget primarily due to contributions from the Outrigger Energy II acquisition closed in Q1 2025, partially offset by lower than budgeted D3 RIN prices and volumes. 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% from 2024), Adjusted EBITDA of $8.3 billion (up 4% vs 2024), and a year-end Net Debt-to-Adjusted EBITDA ratio of 3.8x. Dividends of $1.17 per share are expected for 2025, a 2% increase. The company anticipates meaningful tax advantages from permanent reinstatement of bonus depreciation and expanded interest expense deductibility starting in 2025, with greater benefits in 2026-2027 as new projects come online. Total natural gas demand is expected to grow 20% through 2030, led by LNG exports, and approximately 50% of the project backlog is associated with power generation projects.
KMI YoY Financials
KMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.