Kinder Morgan(US:KMI)2025-04-17 23:15Dividends - 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].