Kinder Morgan Raises Earnings Guidance Amid Outrigger Acquisition

Kinder Morgan's earnings guidance has been raised, with management expecting to beat the previous forecast by contributions from the Outrigger acquisition. Earnings were originally expected to be up about 8% from the previous fiscal year. Kinder Morgan is a leading energy infrastructure company with a diversified portfolio of pipelines and storage assets.

Houston, TX — Kinder Morgan, Inc. (NYSE: KMI) reported its second-quarter 2025 financial results, showcasing a robust performance across its business segments. The company's earnings per share (EPS) increased by 23% compared to the second quarter of 2024, while adjusted EPS rose by 12%. The company also announced a cash dividend of $0.2925 per share for the second quarter, an increase of 2% from the same period last year [1].

Key highlights from the second quarter include:

- Net Income and Adjusted Net Income: Kinder Morgan reported a net income of $715 million, up 24% year-over-year, and an adjusted net income of $619 million, which was 13% higher than the second quarter of 2024.
- Adjusted EBITDA: The company's adjusted EBITDA stood at $1,972 million, marking a 6% increase from the same period last year.
- Project Backlog: Kinder Morgan added $1.3 billion to its project backlog, bringing the total to $9.3 billion. The company also placed $750 million of projects in service during the quarter.
- Natural Gas Pipelines and Terminals: The Natural Gas Pipelines business segment saw improved financial performance, driven by higher contributions from Texas Intrastate and Tennessee Gas Pipeline (TGP). The Terminals business segment also reported earnings increases, led by the Jones Act tanker fleet and expansion projects.
- Dividend Increase: Kinder Morgan's board of directors approved a cash dividend of $0.2925 per share for the second quarter, payable on August 15, 2025.

Executive Chairman Richard D. Kinder commented, "We are truly in an age of American global energy leadership. The United States has been the top global producer of natural gas for 15 consecutive years and the world’s top exporter of liquefied natural gas (LNG) since 2023." Chief Executive Officer Kim Dang noted the company's strong operational performance and project execution, attributing the success to long-term take-or-pay, fee-based contracts with credit-worthy customers [1].

The company expects to exceed its 2025 budget by at least the amount of contributions from the Outrigger Energy II acquisition, which closed in the first quarter of 2025. The budgeted net income attributable to KMI for 2025 is $2.8 billion, up 8% from 2024, with an expected Adjusted EPS of $1.27, up 10% from 2024 [1].

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