Core Insights - Kinder Morgan reported $4.24 billion in revenue for Q1 2025, a 10.4% year-over-year increase, with EPS remaining flat at $0.34 compared to the previous year [1] - The revenue exceeded the Zacks Consensus Estimate by 2.53%, while the EPS fell short by 2.86% [1] Financial Performance Metrics - Realized weighted average oil price was $68.38 per barrel, slightly below the estimated $68.39 per barrel [4] - Terminals - Bulk transload tonnage was 12.5 MMTon, lower than the estimated 13.45 MMTon [4] - Terminals - Liquids leasable capacity was 78.8 MMBBL, exceeding the estimate of 78.08 MMBBL [4] - Realized weighted average NGL price was $35.36 per barrel, significantly higher than the estimated $29.54 per barrel [4] - Segment EBDA for Products Pipelines was $273 million, below the average estimate of $284.28 million [4] - Segment EBDA for Terminals was $275 million, slightly above the average estimate of $269.13 million [4] - Segment EBDA for Natural Gas Pipelines was $1.45 billion, below the estimated $1.56 billion [4] - Segment EBDA for CO2 was $181 million, in line with the average estimate of $181.42 million [4] Stock Performance - Kinder Morgan shares returned -3% over the past month, outperforming the Zacks S&P 500 composite's -5.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for near-term outperformance [3]

Core Viewpoint - Kinder Morgan demonstrates resilience amid market volatility, showcasing a stable business model and strong cash flow, making it a safe investment option during uncertain economic times [2][3][13] Financial Performance - Kinder Morgan reported nearly $2.2 billion in adjusted EBITDA for the first quarter, reflecting a 1% increase from the previous year [4] - The company generated approximately $1.2 billion in cash flow from operations, sufficient to cover its dividend payment of $642 million [6] - A 2% increase in dividends marks the eighth consecutive year of dividend growth for Kinder Morgan [7] Business Segments - Strong operational performance was noted in natural gas pipelines, carbon dioxide, and terminals, while the products pipelines segment experienced a decline due to scheduled maintenance [5] - The company closed a $640 million acquisition of a natural gas gathering and processing system in the Bakken Formation, contributing to its growth strategy [6] Growth Outlook - Kinder Morgan's backlog of expansion projects reached $8.8 billion, an increase of nearly 8% from the end of the previous year, indicating a robust growth trajectory [9] - The addition of approximately $900 million in new projects during the quarter, including the $431 million Bridge pipeline project, enhances the company's growth outlook [10] - The company anticipates continued demand growth for natural gas, driven by LNG exports and increasing power demand [8] Investment Proposition - Kinder Morgan's stable cash flow, supported by long-term fee-based contracts, positions it as a reliable investment during economic turbulence [13] - The company's expansion projects are expected to provide incremental stable cash flow over the next five years, further supporting dividend growth [11][12]

Dividends - The company expects to declare dividends of $1.17 per share for 2025, a 2% increase from the 2024 declared dividends of $1.15 per share[107]. - The board of directors declared a quarterly dividend of $0.2925 per share for Q1 2025, representing a 2% increase from Q1 2024[162]. Financial Performance - Revenues increased by $399 million to $4,241 million in Q1 2025, a 10% increase compared to Q1 2024, primarily driven by a $366 million increase in natural gas sales due to higher commodity prices[127]. - Net income attributable to Kinder Morgan, Inc. decreased by $29 million to $717 million, a 4% decrease compared to $746 million in Q1 2024[132]. - Adjusted Net Income attributable to Kinder Morgan, Inc. increased by $8 million to $766 million, reflecting favorable earnings in the CO, Natural Gas Pipelines, and Terminals segments[135]. - Adjusted EBITDA rose by $20 million to $2,157 million, compared to $2,137 million in Q1 2024[135]. - Operating income of $1,023 million and net income of $614 million were reported for the three months ended March 31, 2025[187]. Costs and Expenses - Operating costs increased by $477 million to $3,096 million, an 18% increase, with costs of sales rising by $369 million, mainly due to higher natural gas prices[128]. - Interest expense, net decreased by $21 million to $451 million, primarily due to lower interest rates[130]. - Operations and maintenance costs increased by $31 million to $711 million, driven by higher activity levels and inflation[129]. Debt and Financing - The company's Net Debt as of March 31, 2025, is calculated at $32,759 million after accounting for cash and cash equivalents, debt fair value adjustments, and foreign exchange impacts[123]. - The company plans to fund its short-term debt of $3,044 million primarily through credit facility borrowings and cash flows from operations[164]. - As of March 31, 2025, approximately $4,906 million (15%) of the company's debt was subject to variable interest rates, up from $3,621 million (11%) as of December 31, 2024[161]. Acquisitions and Investments - The company completed the acquisition of Outrigger Energy for $648 million, which includes a natural gas processing facility and a high-capacity gathering pipeline in North Dakota[106]. - The company plans to invest $3.0 billion in expansion projects, acquisitions, and contributions to joint ventures during 2025[107]. - The company used $648 million in cash for the Outrigger Energy acquisition during the 2025 period[183]. Segment Performance - The Natural Gas Pipelines segment reported revenues of $2,754 million, up from $2,336 million, with segment EBDA decreasing by $53 million to $1,453 million[140]. - Products Pipelines Segment EBDA decreased by $17 million (5.9%) from $290 million in Q1 2024 to $273 million in Q1 2025, with a notable $22 million (29%) decrease in Crude and Condensate[144][147]. - Terminals Segment EBDA increased by $6 million (2.2%) from $269 million in Q1 2024 to $275 million in Q1 2025, driven by a $15 million (33%) increase in Jones Act tankers[149][153]. - CO Segment EBDA increased by $25 million (16.0%) from $156 million in Q1 2024 to $181 million in Q1 2025, with a $10 million (9%) increase in Oil and Gas Producing activities[156]. Cash Flow and Working Capital - Cash flows from operating activities were $1,162 million in Q1 2025, a decrease from $1,189 million in Q1 2024[160]. - Cash flows from financing activities increased by $903 million in Q1 2025 compared to Q1 2024, attributed to a $918 million increase in cash related to debt activity[180]. - The company reported working capital deficits of $3,199 million as of March 31, 2025, an increase of $619 million from $2,580 million at year-end 2024, primarily due to a $1,075 million increase in commercial paper borrowings[165]. Assets and Liabilities - Total liabilities reached $42,068 million as of March 31, 2025, compared to $41,108 million as of December 31, 2024, indicating an increase of approximately 2.3%[187]. - Stockholders' equity for Kinder Morgan, Inc. was $25,957 million as of March 31, 2025, slightly up from $25,923 million as of December 31, 2024[187]. - Current liabilities increased to $5,456 million as of March 31, 2025, compared to $4,737 million as of December 31, 2024, reflecting a rise of approximately 15.2%[187]. Market and Risk Management - There have been no material changes in market risk exposures since December 31, 2024, indicating stability in risk management practices[188]. - Significant intercompany balances and activities with affiliates are presented separately in the financial information, ensuring clarity in financial reporting[185].

1Q 2025 Investor Presentation EPNG Mojave Compressor Station Disclosure Forward-Looking Statements / Non-GAAP Financial Measures / Industry & Market Data General – The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of information contained in this presentation as well as important additional information through the Securities and ...

分组1 - Kinder Morgan reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.35 per share, representing an earnings surprise of -2.86% [1] - The company posted revenues of $4.24 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.53%, compared to year-ago revenues of $3.84 billion [2] - Over the last four quarters, Kinder Morgan has not surpassed consensus EPS estimates, topping revenue estimates just once [2] 分组2 - The stock has lost about 0.7% since the beginning of the year, while the S&P 500 has declined by -8.3% [3] - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the coming quarter is $0.27 on $3.88 billion in revenues, and $1.28 on $16.4 billion in revenues for the current fiscal year [7] 分组3 - The Zacks Industry Rank for Oil and Gas - Production and Pipelines is currently in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Pembina Pipeline, is expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year change of -1.9% [9] - Pembina Pipeline's revenues are projected to be $1.6 billion, up 39.8% from the year-ago quarter [10]

Financial Data and Key Metrics Changes - The company reported strong financial results for Q1 2025, with natural gas demand growing by 6.8 billion cubic feet per day, driven by a 10% increase in residential and commercial demand and a 15% increase in LNG demand [14] - The project backlog increased to $8.8 billion after adding approximately $900 million during the quarter, with over 70% focused on serving power demand [15][16] - The acquisition of the Bakken Gathering and Processing System for $640 million was completed, although it had minimal impact on quarterly results due to a short ownership period [19][20] Business Line Data and Key Metrics Changes - Transport volumes in the natural gas business unit increased by 3% compared to Q1 2024, achieving new peak day volume records [25][26] - The largest project in the backlog, Bridge, is a $430 million extension of the Elba Express pipeline, expected to deliver 325 million cubic feet per day into South Carolina [16] Market Data and Key Metrics Changes - U.S. natural gas demand rose from approximately 60 BCF per day in 2005 to almost 109 BCF per day in 2024, marking an increase of roughly 80% [4] - Future growth in natural gas demand is projected to be between 20 and 28 BCF per day by 2030, primarily driven by increased LNG export demand [5][6] Company Strategy and Development Direction - The company remains bullish on U.S. LNG exports, citing factors such as increased demand from the EU and Asia to offset any potential loss from the Chinese market [9][10] - The company is focused on long-term contracts with creditworthy entities to support its projects, ensuring stable cash flow and a strong balance sheet [21] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for 2025 due to uncertainties surrounding tariffs and commodity prices, although they do not expect a material impact from tariffs [19] - The company anticipates that the $7 trillion in new U.S. investments could drive additional demand not currently captured in projections [15] Other Important Information - Management succession plans were discussed, with Tom Martin set to retire in January 2026, and Dax Sanders to succeed him as president [22][23] Q&A Session Summary Question: Impact of tariffs on project economics - Management does not believe tariffs will significantly impact project economics, estimating the impact to be roughly 1% of project costs for new large projects [17][18] Question: Performance of the Bakken Gathering and Processing System acquisition - The acquisition is performing in line with expectations, despite having only been owned for 45 days during the quarter [20]

Financial Performance - Kinder Morgan approved a cash dividend of $0.2925 per share for Q1 2025, a 2% increase from Q1 2024, resulting in an annualized dividend of $1.17[1] - The company reported Q1 2025 net income attributable to KMI of $717 million, down from $746 million in Q1 2024, while adjusted net income increased by 1% to $766 million[3] - Adjusted EBITDA for Q1 2025 was $2,157 million, reflecting a 1% increase compared to Q1 2024[3] - Revenues for Q1 2025 were $4,241 million, a 10.4% increase from $3,842 million in Q1 2024[42] - Net income attributable to Kinder Morgan, Inc. for Q1 2025 was $717 million, down 3.9% from $746 million in Q1 2024[42] - Adjusted Net Income Attributable to Kinder Morgan, Inc. increased by 1% to $766 million in Q1 2025 from $758 million in Q1 2024[42] - Adjusted EPS remained stable at $0.34 for both Q1 2025 and Q1 2024[42] - Total operating costs for Q1 2025 were $3,096 million, a 18.2% increase from $2,619 million in Q1 2024[42] - Earnings from equity investments for Q1 2025 were $220 million, a decrease from $231 million in Q1 2024[42] - The company reported a significant increase in Total Certain Items, rising to $49 million in Q1 2025 from $12 million in Q1 2024, a 308% increase[47] - Cash flow from operations for Q1 2025 was $1,162 million, slightly down from $1,189 million in Q1 2024, indicating a decrease of about 2.3%[63] - Free cash flow (FCF) for Q1 2025 was $396 million, down 30.4% from $570 million in Q1 2024[63] - Dividends paid in Q1 2025 totaled $642 million, compared to $631 million in Q1 2024, reflecting an increase of approximately 1.7%[63] - FCF after dividends for Q1 2025 was $(246) million, a significant decrease from $(61) million in Q1 2024[63] - Capital expenditures (GAAP) increased to $766 million in Q1 2025 from $619 million in Q1 2024, marking a rise of about 23.8%[63] - Earnings from equity investments showed a loss of $(220) million in Q1 2025, slightly improved from a loss of $(231) million in Q1 2024[63] - Deferred income taxes decreased to $167 million in Q1 2025 from $198 million in Q1 2024, a reduction of approximately 15.6%[63] - Distribution of equity investment earnings was $185 million in Q1 2025, up from $183 million in Q1 2024, indicating a growth of about 1.1%[63] - Working capital and other items resulted in a net outflow of $(323) million in Q1 2025, compared to $(321) million in Q1 2024, showing a slight increase in outflow[63] Project and Acquisition Updates - The project backlog at the end of Q1 2025 stood at $8.8 billion, an 8% increase from $8.1 billion at the end of Q4 2024, with natural gas projects accounting for approximately 91%[7] - The company closed a $640 million acquisition of Outrigger Energy II's gathering and processing system, enhancing its presence in the Bakken region[2] - The largest project added to the backlog is the $431 million Bridge project, designed to provide 325 MMcf/d of firm transportation capacity in South Carolina[7] Future Outlook - The company expects net income attributable to KMI for 2025 to be $2.8 billion, an 8% increase from 2024, and adjusted EPS of $1.27, up 10% from 2024[9] - Kinder Morgan's long-term contracts are projected to move approximately 11 Bcf/d of LNG feedgas by the end of 2027, up from 7 Bcf/d currently[5] - The company anticipates continued demand for its assets and services, with expectations for capital projects and dividends in 2025[39] Operational Metrics - Total assets as of March 31, 2025, were $72,318 million, up from $71,407 million at the end of 2024[59] - Short-term debt increased significantly to $3,044 million in Q1 2025 from $2,009 million at the end of 2024[59] - Net Debt as of March 31, 2025, was $32,762 million, compared to $31,725 million at the end of 2024[59] - Transport volumes for Natural Gas Pipelines increased to 45,976 BBtu/d in Q1 2025 from 44,541 BBtu/d in Q1 2024[56] - Realized weighted average oil price was $68.38 per Bbl in Q1 2025, slightly down from $68.70 per Bbl in Q1 2024[56] - Natural Gas Pipelines Segment EBDA decreased to $1,453 million in Q1 2025 from $1,506 million in Q1 2024[52]

Core Insights - Analysts project Kinder Morgan (KMI) will announce quarterly earnings of $0.35 per share, reflecting a year-over-year increase of 2.9% [1] - Revenue is expected to reach $4.14 billion, marking a 7.7% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised 0.9% higher over the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Key Metrics Analysis - Analysts estimate 'Terminals - Liquids leasable capacity' at 78.08 MMBBL, down from 78.6 MMBBL in the same quarter last year [5] - 'Segment EBDA- Products Pipelines' is projected to reach $284.28 million, compared to $292 million in the same quarter last year [5] - 'Segment EBDA- Terminals' is expected to be $269.13 million, slightly up from $269 million year-over-year [6] - 'Segment EBDA- Natural gas Pipelines' is forecasted at $1.56 billion, an increase from $1.51 billion year-over-year [6] - 'Segment EBDA- CO2' is anticipated to be $181.42 million, up from $158 million in the same quarter last year [6] Market Performance - Kinder Morgan shares have changed by -2.3% in the past month, compared to a -3.6% move of the Zacks S&P 500 composite [7] - With a Zacks Rank 2 (Buy), KMI is expected to outperform the overall market in the near future [7]

Market Overview - The first week of April 2025 experienced significant market volatility due to rapidly changing tariff policies, leading to a historic swing in stock prices [1] - The S&P 500 saw one of its highest single-day gains on April 9, 2025, following the announcement of a 90-day pause on most tariffs by the Trump administration [1] Investment Opportunities - High-yield dividend stocks have been trading at a discount amid increased market volatility, presenting potential opportunities for investors [3] - Prologis, a leading logistics real estate company, has a dividend yield of 4.26% and a strong annualized three-year dividend growth rate of 15.1%, despite a 10% year-to-date dip [4][5] - Kinder Morgan, an energy infrastructure giant, has a dividend yield of 4.35% and has seen a 41% rally over the past year, despite a recent dip of over 3% [8][9] - Verizon Communications, the largest provider of mobile and telephone services in the U.S., offers a dividend yield of 6.20% and is considered insulated from tariff impacts [11][13] Company Performance - Prologis shares fell nearly 6% in the five trading days leading to April 10, 2025, contributing to a year-to-date decline of nearly 10% [6] - Kinder Morgan's executives raised adjusted EPS and EBITDA guidance for 2025, indicating strong growth potential despite a recent earnings miss [10] - Verizon's stock dipped over 4% in the five days leading to April 10, but analysts see more than 9% upside potential, rating it a Moderate Buy [12][14] Analyst Sentiment - Nearly two-thirds of analysts rate Prologis a Buy, with a consensus price target nearly 35% above current levels [7] - Kinder Morgan is rated a Moderate Buy with a consensus price target of $29.64, indicating a potential upside of 15.62% [10] - Verizon is also rated a Moderate Buy, with a consensus price target of $46.92, suggesting it may be undervalued [14]

Core Viewpoint - Kinder Morgan is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly impact its stock price [1][2]. Earnings Expectations - The consensus estimate for Kinder Morgan's quarterly earnings is $0.35 per share, reflecting a 2.9% increase year-over-year, with revenues projected at $4.14 billion, up 7.7% from the previous year [3]. - The consensus EPS estimate has been revised 1.9% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is lower than the consensus estimate, resulting in an Earnings ESP of -2.90%, indicating a bearish outlook from analysts [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise [8]. Historical Performance - Kinder Morgan has only beaten consensus EPS estimates once in the last four quarters, with a recent surprise of -3.03% when it reported earnings of $0.32 per share against an expectation of $0.33 [12][13]. Conclusion - Kinder Morgan does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors before making investment decisions [16].