Kinder Morgan(KMI) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter earnings per share (EPS) of $0.30, up 11% compared to the fourth quarter of 2023 and Adjusted EPS of $0.32, up 14% compared to the fourth quarter of 2023[5] - Net income attributable to KMI of $667 million, compared to $594 million in the fourth quarter of 2023[5] - Adjusted EBITDA of $2,063 million, up 7% versus the fourth quarter of 2023[5] - KMI budgeted net income attributable to KMI of $2.8 billion for 2025, up 8% versus 2024, and Adjusted EPS of $1.27, up 10% from 2024[8] - Q4 2024 revenue decreased slightly to $3.987 billion from $4.038 billion in Q4 2023, a 1.3% decline[43] - Full-year 2024 revenue was $15.100 billion, down 1.5% from $15.334 billion in 2023[43] - Net income attributable to Kinder Morgan, Inc. increased 12% to $667 million in Q4 2024 compared to $594 million in Q4 2023[43] - Adjusted EBITDA for 2024 grew 5% to $7.938 billion from $7.561 billion in 2023[48] - Basic and diluted earnings per share increased 11% to $0.30 in Q4 2024 from $0.27 in Q4 2023[43] - Adjusted EPS grew 14% to $0.32 in Q4 2024 compared to $0.28 in Q4 2023[43] - Net income attributable to Kinder Morgan for Q4 2024 was $667 million, up 12% from $594 million in Q4 2023[64] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $7.938 billion, up from $7.561 billion in the same period of 2023[60] - Net income attributable to Kinder Morgan, Inc. for Q4 2024 was $667 million, up from $594 million in Q4 2023, representing a 12.3% increase[70] - Full-year 2024 net income attributable to Kinder Morgan, Inc. was $2.613 billion, a 9.3% increase from $2.391 billion in 2023[70] - The company's 2025 budget projects net income attributable to Kinder Morgan, Inc. of $2.8 billion and adjusted EBITDA of $8.3 billion[76] - Adjusted Net Income Attributable to Common Stock for 2025 is projected at $2.8 billion[79] Capital Projects and Investments - Project backlog at the end of the fourth quarter of 2024 stood at $8.1 billion, a nearly 60% increase compared to $5.1 billion in the third quarter of 2024[7] - The Trident Intrastate Pipeline Project, an approximately 216-mile pipeline with a capacity of 1.5 Bcf/d, is expected to be in service in the first quarter of 2027[18] - KMI's subsidiary, Hiland Partners Holdings LLC, agreed to purchase a natural gas gathering and processing system in North Dakota for $640 million, expected to close in the first quarter of 2025[20] - The Mississippi Crossing (MSX) project is now designed to transport up to 2.1 Bcf/d of natural gas through the construction of nearly 206 miles of pipeline and three new compressor stations, expected to be in service in November 2028[20] - KMI's total RNG generation capacity will increase to 6.9 Bcf per year with the addition of the Autumn Hills RNG facility[23] - Capital expenditures (GAAP) for 2024 totaled $2.629 billion, a 13.5% increase from $2.317 billion in 2023[70] - 2025 budget includes $2.4 billion for DD&A and $1.8 billion for net interest expense[76] Dividends and Cash Flow - KMI expects to declare dividends of $1.17 per share for 2025, a 2% increase from the dividends declared for 2024[8] - DCF (Distributable Cash Flow) for Q4 2024 was $1.263 billion, an 8% increase from $1.171 billion in Q4 2023[64] - Declared dividends per share for 2024 were $1.15, up from $1.13 in 2023[64] - Cash flow from operations for Q4 2024 was $1.510 billion, down 35.0% from $2.322 billion in Q4 2023[70] - Full-year 2024 free cash flow (FCF) was $3.006 billion, a 28.0% decrease from $4.174 billion in 2023[70] - Distributions from equity investments exceeded cumulative earnings by $60 million in Q4 2024 and $177 million for full-year 2024[71] Segment Performance - Natural Gas Pipelines Segment EBDA increased 2.9% to $1.392 billion in Q4 2024 from $1.353 billion in Q4 2023[54] - Products Pipelines Segment EBDA rose 7.1% to $302 million in Q4 2024 compared to $282 million in Q4 2023[54] - Terminals Segment EBDA grew 5.6% to $281 million in Q4 2024 from $266 million in Q4 2023[54] - CO Segment EBDA decreased 11.7% to $158 million in Q4 2024 from $179 million in Q4 2023[54] Operational Metrics - Natural gas transport volumes for Q4 2024 were 44,507 BBtu/d, slightly down from 44,722 BBtu/d in Q4 2023[56] - Total refined product volumes for Q4 2024 were 1,644 MBbl/d, up from 1,613 MBbl/d in Q4 2023[56] - Liquids leased capacity percentage increased to 95.2% in Q4 2024 from 93.3% in Q4 2023[56] - Total oil production for Q4 2024 was 26.22 MBbl/d, down from 27.09 MBbl/d in Q4 2023[56] - Realized weighted average oil price for Q4 2024 was $67.24 per Bbl, nearly flat compared to $67.22 per Bbl in Q4 2023[56] Financial Metrics and Adjustments - Change in fair value of derivative contracts for the three-month period ending December 31, 2024, was $40 million, compared to $(33) million for the same period in 2023[29] - Loss (gain) on divestitures and impairment, net for the twelve-month period ending December 31, 2024, was $(69) million, compared to $67 million in 2023[29] - Total Certain Items for the three-month period ending December 31, 2024, were $41 million, compared to $39 million in 2023[29] - Adjusted Net Income Attributable to Kinder Morgan, Inc. is calculated by adjusting net income for Certain Items, providing a supplemental measure for period-over-period performance[33] - Adjusted EBITDA is used to evaluate leverage and is calculated by adjusting net income for Certain Items, DD&A, income tax expense, and interest[33] - Net Debt is calculated by subtracting cash, debt fair value adjustments, and foreign exchange impacts from total debt, used to evaluate leverage[35] - DCF (Distributable Cash Flow) is calculated by adjusting net income for Certain Items, DD&A, income tax expense, cash taxes, and sustaining capital expenditures[36] - Project EBITDA is used to evaluate return on investment for capital projects before non-controllable expenses[37] - FCF (Free Cash Flow) is calculated by reducing cash flow from operations for capital expenditures and dividends, providing insight into cash flow generation[38] - Net debt-to-Adjusted EBITDA ratio improved to 4.0x at the end of 2024 from 4.2x at the end of 2023[61] Forward-Looking Statements and Risks - Forward-looking statements include expectations for long-term demand, energy evolution opportunities, and capital project benefits, subject to risks and uncertainties[39] Working Capital and Other Items - The 2023 working capital and other items included $843 million from a customer prepayment agreement for long-term contracts[72]