Kinder Morgan(US:KMI)2025-10-22 20:21Financial Performance - Third quarter net income attributable to Kinder Morgan was $628 million, a slight increase from $625 million in the same quarter of 2024; Adjusted Net Income was $648 million, up 16% year-over-year [5]. - Adjusted EBITDA for the third quarter reached $1,991 million, reflecting a 6% increase compared to the third quarter of 2024 [5]. - Cash flow from operations was $1.4 billion, with free cash flow after capital expenditures of $0.6 billion, representing increases of 13% and 5% respectively from the prior year [4]. - Revenues for the three months ended September 30, 2025, increased to $4,146 million, up from $3,699 million in 2024, representing a 12.1% increase [37]. - Adjusted Net Income Attributable to Kinder Morgan, Inc. for the three months ended September 30, 2025, was $648 million, a 16% increase from $557 million in 2024 [37]. - Adjusted EPS for the three months ended September 30, 2025, rose to $0.29, compared to $0.25 in 2024, marking a 16% increase [37]. - Operating income for the three months ended September 30, 2025, was $1,063 million, compared to $1,015 million in 2024, reflecting a 4.7% increase [37]. - Total operating costs for the three months ended September 30, 2025, were $3,083 million, compared to $2,684 million in 2024, indicating a 14.8% increase [37]. - Income tax expense for the three months ended September 30, 2025, was $185 million, compared to $113 million in 2024, reflecting a significant increase [37]. - The company reported a gain on divestitures of $0 million for the three months ended September 30, 2025, compared to a loss of $70 million in 2024 [27]. - The company reported a 6% increase in net income for the nine months ended September 30, 2025, totaling $2,060 million, up from $1,946 million in 2024 [41]. - Free cash flow (FCF) for the nine months ended September 30, 2025, was $2.019 billion, compared to $2.268 billion for the same period in 2024, indicating a decrease of 11% [56]. Future Projections - The company expects to exceed its 2025 budget, projecting net income attributable to KMI of $2.8 billion, an 8% increase from 2024, and Adjusted EPS of $1.27, up 10% from 2024 [10]. - Recent regulatory adjustments are expected to provide meaningful tax advantages, reducing cash tax liability starting in 2025 and increasing benefits as new projects come online in 2026 and 2027 [9]. Project Backlog and Opportunities - Kinder Morgan's project backlog stood at $9.3 billion at the end of Q3 2025, with natural gas projects accounting for approximately 90% of this backlog [8]. - The company is actively exploring over 10 Bcf/d of opportunities in the natural gas power generation sector, with approximately 50% of its backlog associated with power generation projects [7]. - U.S. LNG nameplate capacity is expected to more than double by 2030, with long-term contracts to move nearly 8 Bcf/d of natural gas to LNG facilities, projected to grow to almost 12 Bcf/d by the end of 2028 [6]. Debt and Dividends - Kinder Morgan's Net Debt-to-Adjusted EBITDA ratio was 3.9 times at the end of the quarter, maintaining a healthy balance sheet [4]. - The company announced a cash dividend of $0.2925 per share for Q3 2025, a 2% increase from the same quarter in 2024 [1]. - Declared dividends per share increased to $0.2925 for the three months ended September 30, 2025, up from $0.2875 in 2024, a 2% increase [37]. - Dividends paid in the three months ended September 30, 2025, were $654 million, slightly up from $643 million in the same period of 2024 [56]. Operational Metrics - Natural Gas Pipelines Segment EBDA for the three months ended September 30, 2025, was $1,391 million, up from $1,285 million in 2024, indicating a strong performance in this segment [46]. - Transport volumes for Natural Gas Pipelines increased to 47,461 BBtu/d in the three months ended September 30, 2025, compared to 44,827 BBtu/d in 2024, representing a growth of approximately 5.8% [49]. - Total refined product volumes for the three months ended September 30, 2025, were 1,652 MBbl/d, slightly down from 1,675 MBbl/d in 2024 [49]. - The realized weighted average oil price for the three months ended September 30, 2025, was $67.74 per Bbl, compared to $68.42 per Bbl in 2024 [49]. - Liquids utilization for the terminals segment was 94.6% for the three months ended September 30, 2025, compared to 94.9% in 2024, indicating stable operational efficiency [49]. - Kinder Morgan's total delivery volumes for the three months ended September 30, 2025, were 2,111 MBbl/d, slightly down from 2,147 MBbl/d in 2024 [49]. Balance Sheet - Total assets increased to $72.316 billion as of September 30, 2025, compared to $71.407 billion on December 31, 2024, reflecting a growth of 1.27% [52]. - Net debt as of September 30, 2025, was $32.269 billion, up from $31.725 billion on December 31, 2024 [52]. - Total liabilities increased to $40.283 billion as of September 30, 2025, compared to $39.540 billion on December 31, 2024 [52]. - The net debt-to-adjusted EBITDA ratio improved to 3.9 as of September 30, 2025, down from 4.0 on December 31, 2024 [53].