Kinder Morgan (KMI) Q4 2024 earnings summary

Executive summary

• Announced FID on four major projects: GCX expansion, SS4, Mississippi Crossing, and Trident, totaling over $5B in CapEx and 5 BCF/day capacity, all backed by long-term contracts with creditworthy customers.

• Added $6.3B in projects to backlog in 2024, placed $1.2B in service, and backlog now stands at $8.1B, up nearly 60% sequentially from $3B last year.

• Outrigger acquisition in the Bakken for $640M complements existing assets and is expected to be immediately accretive, with closing expected Q1 2025.

• Company well-positioned to serve 45% of export LNG demand, 50% of exports to Mexico, and 45% of power demand in key regions.

• Announced $1.7B Trident Intrastate Pipeline Project and secured major contracts for three large natural gas projects.

Financial highlights

• Q4 net income attributable to KMI was $667M, up 12% year-over-year; EPS of $0.30, up 11%.

• Adjusted net income was $708M and adjusted EPS $0.32, up 12% and 14% year-over-year, respectively.

• Full-year net income was $2,613M, up 9% from 2023; full-year EPS was $1.17, up 10%; adjusted EPS up 7%.

• Full-year Adjusted EBITDA was $7,938M, up 5% year-over-year.

• Declared a dividend of $0.2875 per share, $1.15 annualized, up 2% from 2023.

Outlook and guidance

• 2025 budgeted net income is $2.8B, up 8% from 2024; Adjusted EPS expected at $1.27, up 10%; Adjusted EBITDA projected at $8.3B, up 4%.

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

• Anticipate annual expansion CapEx of ~$2.5B for the next several years, up from prior $2B estimate.

• Projected natural gas demand growth of 28 BCF/day by 2030, with upside potential from data center and power demand.

• Year-end leverage expected at 3.8x, even after Outrigger acquisition.