Kinder Morgan (KMI) Q1 2025 earnings summary

Executive summary

• Net income attributable to KMI was $717 million for Q1 2025, down 4% year-over-year, with adjusted net income rising 1% to $766 million and adjusted EBITDA up 1% to $2.16 billion.

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

• 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 $648 million acquisition of Outrigger Energy, expanding natural gas gathering and processing in North Dakota.

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

Financial highlights

• Revenues for Q1 2025 were $4.24 billion, up from $3.84 billion in Q1 2024.

• Net income was $717 million, down $29 million (4%) year-over-year; adjusted net income was $766 million.

• Adjusted EBITDA was $2.16 billion, up $20 million from Q1 2024.

• Declared a dividend of $0.2925 per share ($1.17 annualized), a 2% increase year-over-year.

• Cash flow from operations was $1.16 billion; capital expenditures for Q1 2025 were $766 million; net debt at quarter-end was $32.8 billion.

Outlook and guidance

• 2025 budgeted net income attributable to KMI is $2.8 billion, up 8% versus 2024; adjusted EPS for 2025 expected at $1.27, up 10%.

• 2025 Adjusted EBITDA projected at $8.3 billion, up 4% year-over-year; net debt to adjusted EBITDA expected to improve to 3.8x by year-end.

• 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.

• Management expects strong cash flows and adequate liquidity to fund operations and capital needs.