Kinder Morgan(US:KMI)2025-07-18 20:09PART I. FINANCIAL INFORMATION Financial Statements (Unaudited) This section presents Kinder Morgan's unaudited consolidated financial statements for Q2 2025 and 2024, along with detailed notes on key financial aspects Consolidated Statements of Income Kinder Morgan's Q2 2025 net income attributable to KMI increased 24% to $715 million, driven by a 13% rise in total revenues to $4.04 billion Consolidated Statements of Income Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $4,042 | $3,572 | +13.2% | | Operating Income | $1,152 | $1,038 | +11.0% | | Net Income Attributable to KMI | $715 | $575 | +24.3% | | Diluted EPS | $0.32 | $0.26 | +23.1% | Consolidated Statements of Income Highlights (Six Months 2025 vs 2024) | Metric | Six Months 2025 (in millions) | Six Months 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $8,283 | $7,414 | +11.7% | | Operating Income | $2,297 | $2,261 | +1.6% | | Net Income Attributable to KMI | $1,432 | $1,321 | +8.4% | | Diluted EPS | $0.64 | $0.59 | +8.5% | Consolidated Balance Sheets As of June 30, 2025, total assets increased to $72.37 billion, while total liabilities rose to $40.29 billion, primarily due to long-term debt Consolidated Balance Sheet Summary | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $2,486 | $2,521 | | Total Assets | $72,371 | $71,407 | | Total Current Liabilities | $3,633 | $5,101 | | Total Long-term Debt | $31,871 | $29,881 | | Total Liabilities | $40,290 | $39,540 | | Total Stockholders' Equity | $32,081 | $31,867 | Consolidated Statements of Cash Flows Net cash from operations slightly decreased to $2.81 billion, while investing activities significantly increased to $2.04 billion due to acquisitions and capital expenditures Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $2,811 | $2,876 | | Net Cash Used in Investing Activities | $(2,039) | $(1,172) | | Net Cash Used in Financing Activities | $(789) | $(1,676) | | Net (Decrease) Increase in Cash | $(17) | $28 | Notes to Consolidated Financial Statements These notes detail accounting policies, recent acquisitions like Outrigger Energy for $648 million, debt structure, risk management, and ongoing litigation - On February 18, 2025, the company acquired a natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC for $648 million43 - On May 1, 2025, the company issued two series of senior notes for combined net proceeds of $1,834 million52 - The board of directors declared a Q2 2025 cash dividend of $0.2925 per share, payable on August 15, 202557 - As of June 30, 2025, the company had contractually committed revenue of $36.1 billion to be recognized in future periods80 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q2 and H1 2025 financial performance, highlighting a 24% increase in net income, segment results, non-GAAP measures, liquidity, and capital expenditure plans - The company expects to declare dividends of $1.17 per share for 2025, a 2% increase from 2024124 - KMI anticipates investing $3.0 billion in expansion projects, acquisitions, and contributions to joint ventures during 2025124 Non-GAAP Financial Measures (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Adjusted Net Income Attributable to KMI | $619 | $548 | +13.0% | | Adjusted EBITDA | $1,972 | $1,858 | +6.1% | | Adjusted EPS | $0.28 | $0.25 | +12.0% | Results of Operations Q2 2025 consolidated revenues increased 13% to $4.04 billion, driven by natural gas sales and services, with Natural Gas Pipelines leading earnings growth - Q2 2025 revenue increased by $470 million year-over-year, driven by a $415 million increase in natural gas sales and a $119 million increase in services revenues146147 - The Natural Gas Pipelines segment's EBDA increased by $217 million in Q2 2025 compared to Q2 2024, driven by strong performance in its Midstream and East business units161166 - The Terminals segment's EBDA grew by $19 million in Q2 2025, largely due to higher charter rates for its Jones Act tankers172175 Liquidity and Capital Resources As of June 30, 2025, KMI had $82 million cash and $2.8 billion credit availability, with projected 2025 capital investments of $4.09 billion - As of June 30, 2025, the company had $82 million in cash and approximately $2.8 billion in available borrowing capacity under its credit facility182187 - On June 16, 2025, Moody's Investor Services upgraded KMI's rating outlook to positive186 Expected 2025 Capital Investments | Category | Expected 2025 (in millions) | | :--- | :--- | | Total Sustaining Capital Investments | $1,098 | | Total Expansion Capital Investments | $2,988 | | Total Capital Investments | $4,086 | Quantitative and Qualitative Disclosures About Market Risk No material changes in market risk exposures have occurred since the 2024 Form 10-K, with further details in Note 5 of the financial statements - There have been no material changes in market risk exposures from those disclosed in the 2024 Form 10-K209 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025210 - No material changes were made to the internal control over financial reporting during the second quarter of 2025210 PART II. OTHER INFORMATION Legal Proceedings This section incorporates by reference Note 9 of the financial statements, detailing various legal and environmental matters - The company refers to Note 9, "Litigation and Environmental," for details on legal proceedings211 Risk Factors No material changes to risk factors have occurred since the 2024 Annual Report on Form 10-K and Q1 2025 Quarterly Report - No material changes in risk factors have occurred since the last quarterly report212 Other Information This section discloses a Rule 10b5-1 trading plan adopted by a Vice President and a restricted stock unit grant to Dax Sanders for his promotion - On May 7, 2025, a Vice President adopted a Rule 10b5-1 trading plan for the sale of up to 73,992 shares of KMI common stock216 - On July 15, 2025, Dax Sanders was granted 98,426 restricted stock units in connection with his promotion to President, effective January 31, 2026217