Core Insights - Kinder Morgan's stock closed at $27.95, reflecting a -0.85% change from the previous day, underperforming the S&P 500's loss of 0.56% [1] - The company is expected to report earnings of $0.27 per share, indicating an 8% year-over-year growth, with projected revenue of $3.85 billion, a 7.88% increase from the same quarter last year [2] - For the full year, earnings are forecasted at $1.26 per share and revenue at $16.36 billion, representing increases of +9.57% and +8.35% respectively [3] Company Performance - Kinder Morgan's shares have appreciated by 3.6% over the past month, outperforming the Oils-Energy sector's gain of 2.92% but lagging behind the S&P 500's gain of 7.37% [1] - The Zacks Consensus EPS estimate has decreased by 0.79% over the past month, and Kinder Morgan currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - The company has a Forward P/E ratio of 22.34, which is higher than the industry average of 17.32 [6] - Kinder Morgan's PEG ratio stands at 3.24, compared to the industry average PEG ratio of 2.68 [7] Industry Context - The Oil and Gas - Production and Pipelines industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 141, placing it in the bottom 43% of over 250 industries [8]

Summary of Kinder Morgan Conference Call Company Overview - **Company**: Kinder Morgan - **Industry**: Natural Gas and Energy Infrastructure Key Points Industry and Market Dynamics - **Natural Gas Demand Growth**: Forecasted growth of natural gas demand is 28 billion cubic feet (BCF) per day, representing a 25% increase over the next four years, which is above consensus estimates [5][6][7] - **Drivers of Growth**: Growth is primarily driven by LNG exports (15-18 BCF per day), incremental power demand, industrial demand, and exports to Mexico [7][8] - **Pipeline Capacity**: Existing pipeline systems are highly utilized, with significant price increases in storage services noted [8] - **Backlog of Projects**: Kinder Morgan has an $8.8 billion backlog, with 90% related to natural gas, largely backed by take-or-pay contracts [9][10] Demand Drivers - **LNG Exports**: LNG export facilities require pipeline capacity, leading to increased demand for upstream connections [12][13] - **Power Demand**: 50% of Kinder Morgan's backlog is associated with power demand, driven by population migration, industrial growth, and coal retirements [17][18][21] - **Geographic Focus**: 85% of expected natural gas demand growth is in the Southern and Southeastern United States [21] Financial Performance and Strategy - **Revenue Sources**: 64% of EBITDA comes from take-or-pay contracts, with 26% from fee-for-service businesses, indicating low sensitivity to commodity prices [25][26] - **Capital Allocation**: Maintenance capital is around $1 billion, with growth CapEx at approximately $2.5 billion. The company aims to maintain and modestly grow dividends while investing in high-return projects [76][77] - **Debt Management**: Net debt to EBITDA is targeted at 3.5 to 4.5 times, with a focus on maintaining a strong balance sheet [78][79] Regulatory Environment - **Permitting Process**: The federal permitting process is improving, with recent regulatory changes aimed at expediting permits [33][34][36] - **Judicial Challenges**: There is a need for clarity in the judicial process regarding permit challenges, which can impact project timelines [37][39] Growth Opportunities - **M&A Strategy**: Kinder Morgan maintains a strong appetite for mergers and acquisitions, focusing on stable fee-based assets that meet specific criteria [49][50] - **Technological Advancements**: The company is exploring AI applications to enhance operational efficiency and decision-making [52][54] Refined Products and CO2 Business - **Refined Products Outlook**: Demand for refined products is expected to stabilize, with a modest price increase due to tariff escalators, despite a slight volume decline [56][59] - **CO2 Business**: Kinder Morgan's CO2 business involves enhanced oil recovery methods, contributing to 9% of overall business, with a focus on existing infrastructure [61][66] Conclusion - **Investment Proposition**: Kinder Morgan offers stable cash flow backed by long-term contracts, an attractive dividend, and a significant project backlog, positioning the company for growth in the natural gas sector [87][88]

Core Insights - Blackstone's total market value of holdings reached $24.1 billion for Q1 2025, up from $22.0 billion in the previous quarter, representing a 9% increase [1][2] - The investment portfolio included 47 new stocks, 36 stocks were increased, 25 stocks were reduced, and 39 stocks were completely sold out [1][2] - The top ten holdings accounted for 68.8% of the total market value [1][2] Holdings Overview - The largest holding is Cheniere Energy Partners (CQP.US) with approximately 102 million shares valued at about $6.759 billion, making up 28.07% of the portfolio, unchanged from the previous quarter [2][3] - Corebridge Financial Inc. (CRBG.US) is the second-largest holding with around 61.96 million shares valued at approximately $1.956 billion, also unchanged [2][3] - Williams (WMB.US) ranks third with about 20.08 million shares valued at approximately $1.200 billion, reflecting a 5.94% increase in holdings [3][4] Sector Focus - The portfolio shows a strong inclination towards energy stocks, with significant positions in companies like Targa Resources (TRGP.US), Energy Transfer Equity LP (ET.US), and MPLX LP (MPLX.US) [3][4] - The top five purchases included SPDR S&P 500 ETF put options, CoreWeave (CRWV.US), Kinder Morgan (KMI.US), Hess Midstream (HESM.US), and Enbridge (ENB.US) [4][5] - The top five sales included Expand Energy, First Industrial Realty (FR.US), Western Midstream (WES.US), Energy Transfer (ET.US), and NextEra Energy (NEE.US) [5][6]

Core Insights - ArcLight Capital Partners has acquired a 25% interest in Natural Gas Pipeline Company of America (NGPL), making it the largest owner with a 62.5% economic ownership interest alongside Kinder Morgan, which holds a 37.5% interest [1][3] Company Overview - NGPL is one of the largest interstate pipeline systems in the U.S., covering nine states with approximately 9,100 miles of pipeline, 1 million horsepower in compressor stations, and 288 billion cubic feet of storage capacity [2] - Kinder Morgan is a major energy infrastructure company in North America, operating around 79,000 miles of pipelines and over 700 billion cubic feet of working natural gas storage capacity [6] Strategic Importance - The U.S. is experiencing historic power demand growth driven by electrification and AI, necessitating critical infrastructure like NGPL to meet these demands [3] - NGPL is positioned to support utilities, LNG exporters, and data center developers in addressing their growing gas infrastructure needs [3] Investment Background - ArcLight has a history of investing in critical gas infrastructure since 2001, having owned or operated over 65 GW of assets and 47,000 miles of electric and gas transmission infrastructure, representing an enterprise value of $80 billion [3][5] - The acquisition reflects ArcLight's operational expertise and its commitment to being a value-added partner in the energy infrastructure sector [3]

Core Insights - The energy midstream sector is attractive for investors seeking passive income due to stable cash flows from oil and gas transportation through pipelines [1] - Enbridge, Enterprise Products Partners, and Kinder Morgan are highlighted as top options for generating passive income in this sector [2] Enbridge - Enbridge is a significant player in the midstream sector, with approximately 75% of its EBITDA linked to oil and natural gas pipelines [3] - The company has a strong history of dividend increases, with a streak of 30 years, supported by its diversified portfolio that includes regulated natural gas utilities and renewable power investments [4][5] - Enbridge offers a dividend yield of 5.8%, making it a suitable long-term investment for dividend-focused investors [6] Enterprise Products Partners - Enterprise Products Partners operates a vast pipeline network exceeding 50,000 miles and has a strong track record of capital management and shareholder rewards [7] - The company has increased its dividend for 26 consecutive years, with distributable cash flows covering dividend payouts by at least 1.5 times since 2018 [8] - Major projects worth $6 billion are expected to come online this year, enhancing the company's earnings and cash flow, with a current dividend yield of 6.8% [9] Kinder Morgan - Kinder Morgan has a dividend yield of approximately 4.5%, supported by stable cash flows from long-term fee-based contracts, with less than 45% of cash flows paid out as dividends [10] - The company has a backlog of $8.8 billion in growth capital projects, primarily focused on natural gas pipeline expansions, with significant visibility into future cash flow growth [11] - Demand for natural gas is increasing, driven by factors such as AI data centers and the electrification of transportation, positioning Kinder Morgan for continued expansion and dividend growth [12][13]

Core Viewpoint - Kinder Morgan maintains an optimistic outlook on natural gas demand, driven by liquefied natural gas (LNG) exports and emerging demand from artificial intelligence data centers [1][2]. Investment Landscape - The Trump administration has announced nearly $7 trillion in new investments, which could significantly boost natural gas demand if realized [2][3]. - Major companies, including Apple, Softbank, OpenAI, and Oracle, are committing substantial investments, with Apple alone pledging $500 billion [3][5]. Infrastructure and Growth Opportunities - Kinder Morgan has a backlog of $8.8 billion in projects, with 91% supporting natural gas, indicating strong growth potential [7]. - The company is expanding its Elba Express pipeline, which will deliver 325 million cubic feet of natural gas per day, with potential future expansion to 1 billion cubic feet per day [7]. Market Position - Kinder Morgan is strategically positioned to capture a significant share of the growing natural gas market, supported by its extensive pipeline network and storage capacity [8]. - The company is actively pursuing over 5 billion cubic feet per day of opportunities in the natural gas power generation sector [8]. Future Outlook - Natural gas demand is expected to grow steadily, bolstered by catalysts such as LNG and AI data centers, alongside the influx of $7 trillion in investment pledges [9]. - This growth presents Kinder Morgan with further opportunities to expand its gas infrastructure and maintain its high-yielding dividend [9].

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 ...