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Is Kinder Morgan Poised for a Beat in Second-Quarter Earnings?

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Key Takeaways

  • Kinder Morgan will report Q2 earnings on July 16, with EPS estimated at $0.28, up 12% year over year.
  • Higher gas prices and increased transport volumes may have supported KMI's revenues and fee-based earnings.
  • KMI's cost controls, tariff mitigation, and project backlog expansion could aid quarterly margin stability.

Kinder Morgan, Inc. (KMI - Free Report) is set to report second-quarter 2025 earnings on July 16, after the closing bell.

Let us delve into the factors that are anticipated to have affected this pipeline operator’s quarterly performance. However, before that, it would be worth reviewing KMI’s performance in the previous quarter.

Highlights of Q1 Earnings & Surprise History

In the last reported quarter, the company’s adjusted earnings per share of 34 cents missed the Zacks Consensus Estimate of 35 cents, primarily due to a planned turnaround at its condensate processing facility and increased operating costs. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Kinder Morgan’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and met in one, the average negative surprise being 3.33%. This is depicted in the graph below:

Kinder Morgan, Inc. Price and EPS Surprise

Kinder Morgan, Inc. Price and EPS Surprise

Kinder Morgan, Inc. price-eps-surprise | Kinder Morgan, Inc. Quote

Estimate Trend

The Zacks Consensus Estimate for second-quarter earnings per share of 28 cents has witnessed one upward revision and no downward movement over the past 60 days. The estimate suggests a 12% improvement from the prior-year reported numbers.

The top-line estimate of $3.88 billion indicates an 8.69% increase from the year-ago reported figure.

Factors to Note

Kinder Morgan is expected to have maintained a stable performance in the second quarter due to long-term contracts that ensure consistent cash flows and protect against short-term market fluctuations.

Per EIA, the Natural Gas Henry Hub Spot price increased almost 53% year over year in the second quarter. Higher natural gas prices in parts of the second quarter might have positively impacted Kinder Morgan’s revenues.

Additionally, gathering and transport volumes were higher year over year, which likely aided overall throughput and fee-based earnings. The company also continued to expand its approximately $8 billion project backlog, likely aided by acquisition-driven contributions from the Outrigger Energy II deal. Furthermore, proactive tariff mitigation and disciplined cost controls might have aided margin preservation amid inflationary pressures.

These factors are anticipated to have aided the company’s quarterly financial performance.

Earnings Whisper

Our proven model indicates an earnings beat for Kinder Morgan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just the case here, as you will see below.

Earnings ESP: KMI’s Earnings ESP is +20.71%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

BP plc (BP - Free Report) currently has an Earnings ESP of +4.75% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

BP is scheduled to release second-quarter earnings on Aug. 5. The Zacks Consensus Estimate for BP’s earnings is pegged at 60 cents per share, suggesting a 40% decrease from the prior-year reported figure.

ConocoPhillips (COP - Free Report) presently has an Earnings ESP of +8.04% and a Zacks Rank #3.

ConocoPhillips is scheduled to release second-quarter earnings on Aug. 7. The Zacks Consensus Estimate for COP’s earnings is pegged at $1.38 per share, suggesting a 30.3% decrease from the prior-year reported figure.

EOG Resources, Inc. (EOG - Free Report) currently has an Earnings ESP of +8.63% and a Zacks Rank #3.

EOG Resources is scheduled to release second-quarter earnings on Aug. 7. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.13 per share, suggesting a 32.6% decline from the prior-year reported figure.


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