Kinder Morgan Meets Q2 Earnings Expectations, Revenue Surpasses Consensus Estimate

Kinder Morgan reported Q2 earnings of $0.28 per share, in line with the Zacks Consensus Estimate. The company's revenues of $4.04 billion surpassed the Zacks Consensus Estimate by 4.11%. Kinder Morgan has topped consensus revenue estimates two times over the last four quarters. The shares have added about 2% since the beginning of the year versus the S&P 500's gain of 6.2%. The company's earnings outlook is expected to be in line with the market in the near future.

Houston, TX - Kinder Morgan Inc. (KMI) reported its second-quarter earnings on July 16, 2025, with a net income of $715 million, up 24% compared to the same period last year. The company's earnings per share (EPS) were 28 cents, meeting the Zacks Consensus Estimate of 28 cents per share [1].

The company's revenue for the quarter reached $4.04 billion, surpassing the Zacks Consensus Estimate by 4.11% [1]. This marks the second consecutive quarter where Kinder Morgan has exceeded revenue expectations, following similar over-performance in the previous four quarters [1].

Kinder Morgan's financial performance was driven by robust growth in its Natural Gas Pipelines and Terminals business segments, which contributed to a 3% increase in natural gas transport volumes [2]. The company also benefited from higher rates and volumes in its Products Pipelines segment, despite weak commodity prices and the expiration of legacy contracts [2].

The company's project backlog increased by 6% to $9.3 billion at the end of the second quarter, with natural gas projects accounting for approximately 93% of the backlog [2]. Kinder Morgan expects the remaining $7.6 billion of projects in the backlog to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.6 times [2].

Kinder Morgan's balance sheet remains strong, with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times at the end of the second quarter [2]. The company expects to exceed its 2025 budget by at least the amount of contributions from the Outrigger Energy II acquisition that closed in the first quarter of 2025 [2].

Despite the supportive federal permitting environment, Kinder Morgan anticipates some challenges from escalating tariffs, but does not expect these to have a significant impact on project economics [2]. The company also expects favorable tax benefits due to the recently passed budget reconciliation bill [2].

Kinder Morgan's shares have added about 2% since the beginning of the year, compared to the S&P 500's gain of 6.2% [1]. The company's earnings outlook is expected to be in line with the market in the near future [1].

References:

[1] https://www.washingtonpost.com/business/2025/07/16/earns-kinder-morgan/e459c968-6281-11f0-bf70-56d8888ebb94_story.html
[2] https://ir.kindermorgan.com/news/news-details/2025/Kinder-Morgan-Reports-Second-Quarter-2025-Financial-Results/default.aspx