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Kinder Morgan Q2 Earnings Meet Estimates, Revenues Increase Y/Y
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Key Takeaways
Kinder Morgan reported Q2 adjusted EPS of $0.28, matching estimates and rising from $0.25 a year ago.
Revenues rose to $4.04B from $3.57B, driven by strong natural gas demand and segment performance.
KMI raised its project backlog to $9.3B and reaffirmed 2025 earnings and dividend guidance.
Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2025 adjusted earnings per share of 28 cents, which met the Zacks Consensus Estimate. The bottom line increased year over year from 25 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total quarterly revenues of $4.04 billion beat the Zacks Consensus Estimate of $3.88 billion. The top line increased from $3.57 billion in the prior-year quarter.
The better-than-expected quarterly earnings were primarily due to robust natural gas demand and higher contributions from its Natural Gas Pipelines and Terminals segments.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Natural Gas Pipelines: In the June-end quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA), including the amortization of the excess cost of equity investments, increased to $1.35 billion from $1.22 billion a year ago. The segment's performance benefited from higher contributions from Texas Intrastate system and Tennessee Gas Pipeline.
Product Pipelines: The segment’s EBDA in the second quarter was $289 million, down from $298 million recorded a year ago. The lower contributions were primarily due to weak commodity prices and the expiration of legacy contracts ahead of KMI’s Double H pipeline conversion to natural gas liquids service. However, higher transport rates and increased volumes — refined products and crude/condensate rose 2% each — partially offset the decline.
Terminals: Kinder Morgan generated a quarterly EBDA of $300 million from the segment, higher than the year-ago period’s $281 million. The segment’s earnings rose due to higher rates from the Jones Act tanker fleet, partly offset by lower coal handling earnings.
CO2: The segment’s EBDA was $145 million, down from the year-ago quarter’s $162 million. This was due to higher renewable natural gas sales volumes, partially offset by lower CO2 and D3 RIN prices.
Operational Highlights
Expenses related to operations and maintenance totaled $773 million, up from $741 million registered a year ago. Total operating costs, expenses, and other expenditures increased to $2,890 million from $2,534 million.
For the second quarter of 2025, KMI’s project backlog rose nearly 6% to $9.3 billion (net of about $750 million in completed projects), up from $8.8 billion at the end of the first quarter.
Balance Sheet
As of June 30, 2025, KMI reported $82 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $31.7 billion.
Outlook
For 2025, Kinder Morgan reiterated its 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 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.
Zacks Rank & Stocks to Consider
Kinder Morgan currently carries a Zacks Rank #3 (Hold).
MPLX appears to be a strong long-term investment, as it generates steady income from fixed-fee contracts rather than relying on fluctuating oil and gas prices. It owns and operates key pipelines and processing facilities, positioning it well to grow as U.S. oil and gas production increases, particularly in active regions such as the Permian, Marcellus and Utica.
The Zacks Consensus Estimate for MPLX’s 2025 EPS is pegged at $4.44. The company has a Value Score of B.
Viper Energy generates strong, steady royalty income from its royalty acres in the prolific Permian Basin, with active rigs providing ample growth potential. The company boasts a lower debt-to-capitalization ratio than the composite stocks in the energy sector, indicating a healthier financial position.
The Zacks Consensus Estimate for VNOM’s 2025 EPS is pegged at $1.62.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.
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Kinder Morgan Q2 Earnings Meet Estimates, Revenues Increase Y/Y
Key Takeaways
Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2025 adjusted earnings per share of 28 cents, which met the Zacks Consensus Estimate. The bottom line increased year over year from 25 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total quarterly revenues of $4.04 billion beat the Zacks Consensus Estimate of $3.88 billion. The top line increased from $3.57 billion in the prior-year quarter.
The better-than-expected quarterly earnings were primarily due to robust natural gas demand and higher contributions from its Natural Gas Pipelines and Terminals segments.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Kinder Morgan, Inc. price-consensus-eps-surprise-chart | Kinder Morgan, Inc. Quote
Segmental Analysis
Natural Gas Pipelines: In the June-end quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA), including the amortization of the excess cost of equity investments, increased to $1.35 billion from $1.22 billion a year ago. The segment's performance benefited from higher contributions from Texas Intrastate system and Tennessee Gas Pipeline.
Product Pipelines: The segment’s EBDA in the second quarter was $289 million, down from $298 million recorded a year ago. The lower contributions were primarily due to weak commodity prices and the expiration of legacy contracts ahead of KMI’s Double H pipeline conversion to natural gas liquids service. However, higher transport rates and increased volumes — refined products and crude/condensate rose 2% each — partially offset the decline.
Terminals: Kinder Morgan generated a quarterly EBDA of $300 million from the segment, higher than the year-ago period’s $281 million. The segment’s earnings rose due to higher rates from the Jones Act tanker fleet, partly offset by lower coal handling earnings.
CO2: The segment’s EBDA was $145 million, down from the year-ago quarter’s $162 million. This was due to higher renewable natural gas sales volumes, partially offset by lower CO2 and D3 RIN prices.
Operational Highlights
Expenses related to operations and maintenance totaled $773 million, up from $741 million registered a year ago. Total operating costs, expenses, and other expenditures increased to $2,890 million from $2,534 million.
For the second quarter of 2025, KMI’s project backlog rose nearly 6% to $9.3 billion (net of about $750 million in completed projects), up from $8.8 billion at the end of the first quarter.
Balance Sheet
As of June 30, 2025, KMI reported $82 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $31.7 billion.
Outlook
For 2025, Kinder Morgan reiterated its 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 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.
Zacks Rank & Stocks to Consider
Kinder Morgan currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at a few better-ranked stocks like MPLX LP (MPLX - Free Report) , Viper Energy, Inc. (VNOM - Free Report) and W&T Offshore, Inc. (WTI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MPLX appears to be a strong long-term investment, as it generates steady income from fixed-fee contracts rather than relying on fluctuating oil and gas prices. It owns and operates key pipelines and processing facilities, positioning it well to grow as U.S. oil and gas production increases, particularly in active regions such as the Permian, Marcellus and Utica.
The Zacks Consensus Estimate for MPLX’s 2025 EPS is pegged at $4.44. The company has a Value Score of B.
Viper Energy generates strong, steady royalty income from its royalty acres in the prolific Permian Basin, with active rigs providing ample growth potential. The company boasts a lower debt-to-capitalization ratio than the composite stocks in the energy sector, indicating a healthier financial position.
The Zacks Consensus Estimate for VNOM’s 2025 EPS is pegged at $1.62.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.