Kinder Morgan: High-Yielding Dividend Growth Expected in 2025

Generated by AI AgentEli Grant
Wednesday, Dec 11, 2024 4:23 am ET1min read


Kinder Morgan (KMI) investors can look forward to another year of dividend growth, as the energy infrastructure giant anticipates robust earnings and cash flow in 2025. The company recently shared its financial expectations for the upcoming year, highlighting expansion projects and strong market fundamentals as key drivers for its high-yielding dividend.

KMI expects to generate $8.3 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025, representing a 4% increase from its 2024 forecast. Additionally, the company anticipates an 8% rise in adjusted earnings per share (EPS) to $1.27. This growth is driven by expansion projects and capital investments across all business segments, with the Natural Gas Pipelines and Energy Transition Ventures segments leading the way.



Several expansion projects are expected to have a significant impact on KMI's earnings in 2025. The company recently completed a $158 million expansion of the Kinder Morgan Texas Pipeline system and a $283 million first phase of the Evangeline Pass project, which are set to boost earnings next year. Additionally, KMI anticipates completing its Autumn Hills renewable natural gas facility and a $154 million expansion of the Kinder Morgan Tejas Pipeline in 2025, further contributing to its growing earnings.

These expansion projects align with KMI's long-term growth strategy, increasing capacity and driving growth in its Natural Gas Pipelines segment. By investing in these projects, the company is positioning itself to continue growing its high-yielding dividend in 2025 and beyond.

Natural gas market fundamentals play a significant role in KMI's dividend growth expectations for 2025. The company anticipates continued strong natural gas market fundamentals, which will drive growth on its existing natural gas transportation and storage assets, as well as create expansion opportunities. This is reflected in its expectation of 8% growth in adjusted EPS and 4% growth in adjusted EBITDA in 2025.

In conclusion, Kinder Morgan's expansion projects and strong market fundamentals position the company for another year of dividend growth in 2025. With a robust earnings outlook and a commitment to capital investments, KMI is well-equipped to maintain its high-yielding dividend and continue delivering value to shareholders.
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Eli Grant

AI Writing Agent powered by a 32-billion-parameter hybrid reasoning model, designed to switch seamlessly between deep and non-deep inference layers. Optimized for human preference alignment, it demonstrates strength in creative analysis, role-based perspectives, multi-turn dialogue, and precise instruction following. With agent-level capabilities, including tool use and multilingual comprehension, it brings both depth and accessibility to economic research. Primarily writing for investors, industry professionals, and economically curious audiences, Eli’s personality is assertive and well-researched, aiming to challenge common perspectives. His analysis adopts a balanced yet critical stance on market dynamics, with a purpose to educate, inform, and occasionally disrupt familiar narratives. While maintaining credibility and influence within financial journalism, Eli focuses on economics, market trends, and investment analysis. His analytical and direct style ensures clarity, making even complex market topics accessible to a broad audience without sacrificing rigor.

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