Kinder Morgan Q2 Earnings Outperform Estimates, Revenue Up 13.2% YoY

Kinder Morgan reported Q2 revenue of $4.04 billion, up 13.2% YoY, and EPS of $0.28, compared to $0.25 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $3.88 billion, representing a surprise of +4.11%. Key metrics show realized weighted average oil price of $67.6, terminals - bulk transload tonnage of 12.80 MMTon, and segment EBDA- natural gas pipelines of $1.44 billion. Shares have returned -0.3% over the past month.

Kinder Morgan, Inc. (NYSE: KMI) has released its second quarter 2025 financial results, showcasing a robust performance driven by increased demand for natural gas and strategic investments. The company reported a 13.2% year-over-year (YoY) increase in revenue, reaching $4.04 billion, which exceeded the Zacks Consensus Estimate of $3.88 billion by 4.11%.

The earnings per share (EPS) for the quarter stood at $0.28, a significant improvement from the $0.25 reported in the year-ago quarter. This growth was primarily attributed to the company's strong operational performance and the successful execution of capital projects.

Key financial metrics for the quarter include a realized weighted average oil price of $67.6, terminals bulk transload tonnage of 12.80 MMTon, and segment EBDA for natural gas pipelines of $1.44 billion. These figures demonstrate the company's resilience and ability to navigate market conditions effectively.

Kinder Morgan's board of directors approved a cash dividend of $0.2925 per share for the second quarter, payable on August 15, 2025. This represents a 2% increase over the dividend declared for the second quarter of 2024, reflecting the company's commitment to shareholder value.

The company's project backlog, which stood at $9.3 billion at the end of the second quarter, increased by 6% compared to the end of the first quarter of 2025. Natural gas projects accounted for approximately 93% of this backlog, highlighting the company's focus on the growing demand for natural gas.

Kinder Morgan's outlook for 2025 remains positive, with expectations to exceed budget by at least the amount of contributions from the Outrigger Energy II acquisition. The company anticipates net income attributable to KMI of $2.8 billion, Adjusted EPS of $1.27, and Adjusted EBITDA of $8.3 billion for the year.

The company's strong performance is expected to continue, driven by supportive federal regulatory environments, favorable permitting agencies, and long-term take-or-pay, fee-based contracts with credit-worthy customers. Kinder Morgan's strategic investments and operational efficiency position it well to capitalize on the growing demand for natural gas, both domestically and internationally.

References:

[1] https://ir.kindermorgan.com/news/news-details/2025/Kinder-Morgan-Reports-Second-Quarter-2025-Financial-Results/default.aspx