Kinder Morgan, Inc. KMI reported first-quarter 2025 adjusted earnings per share of 34 cents, which missed the Zacks Consensus Estimate of 35 cents. The bottom line remained flat year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total quarterly revenues of $4.24 billion beat the Zacks Consensus Estimate of $4.14 billion. The top line increased from $3.84 billion in the prior-year quarter.
The lower-than-expected quarterly earnings were primarily due a planned turnaround at its condensate processing facility and increased operating costs. However, strong operational performance and higher contributions from its Natural Gas Pipelines, CO2 and Terminals segments helped offset the impact.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Kinder Morgan, Inc. price-consensus-eps-surprise-chart | Kinder Morgan, Inc. Quote
Dividend Hike
Kinder Morgan announced a quarterly cash dividend of 29.25 cents per share for the first quarter of 2025 (annualized dividend of $1.17), reflecting an almost 2% increase from the fourth-quarter 2024 level. The dividend is payable on May 15, 2025, to shareholders of record as of April 30, 2025.
Segmental Analysis
Natural Gas Pipelines: In the March-end quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA), including the amortization of the excess cost of equity investments, increased to $1.53 billion from $1.52 billion a year ago. The segment's performance benefited from higher contributions from Texas Intrastate system and Tennessee Gas Pipeline. However, this was partially offset by lower contributions from the gathering systems due to reduced volumes.
Product Pipelines: The segment’s EBDA in the first quarter was $274 million, down from $291 million recorded a year ago. The lower contributions were mainly due to a planned turnaround at the Houston condensate facility and weaker commodity prices. However, higher transport rates and increased volumes — refined products and crude/condensate rose 2% and 4%, respectively — partially offset the decline.
Terminals: Kinder Morgan generated a quarterly EBDA of $275 million from the segment, higher than the year-ago period’s $269 million. The segment’s earnings rose due to higher rates from the Jones Act tanker fleet, partly offset by lower coal handling earnings due to higher shortfall payments last year.
CO2: The segment’s EBDA was $182 million, up from the year-ago quarter’s $164 million on higher renewable natural gas sales volumes, partially offset by lower D3 RIN prices.
Operational Highlights
Expenses related to operations and maintenance totaled $711 million, up from $680 million registered a year ago. Total operating costs, expenses, and other expenditures increased to $3,096 million from $2,619 million.
For the first quarter of 2025, KMI’s project backlog rose nearly 8% to $8.8 billion, net of about $225 million in completed projects, up from $8.1 billion at the end of fourth-quarter 2024.
Balance Sheet
As of March 31, 2025, KMI reported $80 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.8 billion.
Outlook
For 2025, Kinder Morgan reiterated a projected net income of $2.8 billion, up 8% from the 2024 level, and an Adjusted EPS of $1.27, up 10%. The company expects dividends of $1.17 per share, up 2% from the prior-year figure. It also anticipates a budgeted Adjusted EBITDA of $8.3 billion, up 4% from the previous year’s level.
KMI also forecasts a Net Debt-to-Adjusted EBITDA ratio of 3.8x, excluding potential contributions from the Outrigger Energy II acquisition. These estimates assume average 2025 prices of $68 per barrel for WTI crude and $3.00/MMBtu for Henry Hub natural gas.
Kinder Morgan expects U.S. natural gas demand to grow in the range of 20-28 Bcf/day by 2030, driven primarily by LNG exports, power generation (including AI and data center demand) and rising residential and commercial use.
Zacks Rank & Other Stocks to Consider
Kinder Morgan currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like Archrock Inc. AROC, Delek Logistics Partners, LP DKL and Range Resources Corporation RRC. While Archrock and Delek Logistics Partners presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.
Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.
Delek Logistics Partners manages and owns systems for moving and storing oil and other products. The company operates pipelines that transport crude oil and refined products like gasoline and diesel. DKL also collects crude oil from different areas and stores it in tanks.
Delek Logistics Partners’ earnings beat estimates in two of the trailing four quarters, met once and missed on the other, delivering an average surprise of 79.75%.
Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on the role of natural gas as a cleaner-burning fuel amid a low-carbon shift.
RRC’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.49%.
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