Kinder Morgan (KMI) Q1 2025 earnings summary

Executive summary

• Revenue rose 10% year-over-year to $4.24 billion for Q1 2025, driven by higher natural gas prices and increased service volumes.

• Net income attributable to KMI was $717 million, down 4% year-over-year; adjusted net income was $766 million, up 1% year-over-year.

• Project backlog increased by $900 million to $8.8 billion, with over 70% focused on power demand and 91% related to natural gas projects.

• Completed Outrigger Energy acquisition for $640–648 million, expanding Bakken presence and performing as expected.

• Management succession plan announced: Tom Martin to retire in January 2026, with Dax Sanders to succeed him.

Financial highlights

• Adjusted EBITDA was $2.16 billion, up 1% year-over-year; adjusted EPS was $0.34, flat year-over-year.

• Declared a dividend of $0.2925 per share ($1.17 annualized), up 2% from last year.

• Net debt ended at $32.8 billion, with net debt to adjusted EBITDA at 4.1x.

• Cash flow from operations was $1.16 billion; free cash flow after capital expenditures was $0.4 billion.

• Capital expenditures for Q1 2025 were $766–770 million.

Outlook and guidance

• 2025 budgeted net income is $2.8 billion, up 8% versus 2024; adjusted EPS expected at $1.27, up 10% year-over-year.

• Adjusted EBITDA for 2025 projected at $8.3 billion, up 4% year-over-year.

• Dividend guidance for 2025 is $1.17 per share, a 2% increase over 2024.

• Most 2025 budgeted growth comes from expansion projects, with the majority on track to be placed in service on time and on budget.

• Tariffs and commodity price uncertainty led to a more conservative outlook, but tariff impact on major projects estimated at only 1% of cost.