Kinder Morgan(US:KMI)2025-10-24 20:09Dividends - 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[112]. - The company declared a quarterly dividend of $0.2925 per share for Q3 2025, a 2% increase from Q3 2024[173]. - Declared dividends per share increased by $0.005 (2%) to $0.2925 for the three months and by $0.015 (2%) to $0.8775 for the nine months ended September 30, 2025[140]. Financial Performance - Revenues increased by $447 million (12%) for the three months ended September 30, 2025, and by $1,316 million (12%) for the nine months ended September 30, 2025, compared to the prior year periods[134]. - Operating income rose by $48 million (5%) for the three months and by $84 million (3%) for the nine months ended September 30, 2025, compared to the respective prior year periods[134]. - Net income attributable to Kinder Morgan, Inc. was $628 million for the three months and $2,060 million for the nine months ended September 30, 2025, showing a slight increase of $3 million for the three months and $114 million (6%) for the nine months compared to the prior year[140]. - Adjusted Net Income attributable to Kinder Morgan, Inc. increased by $91 million (16%) and $170 million (9%) for the three and nine months ended September 30, 2025, respectively, compared to the prior year periods[144]. - Adjusted EBITDA increased to $1,991 million for the three months and $6,120 million for the nine months ended September 30, 2025, compared to $1,880 million and $5,875 million in the prior year[140]. Costs and Expenses - Costs of sales increased by $371 million (36%) for the three months and by $984 million (32%) for the nine months ended September 30, 2025, primarily due to higher natural gas prices and volumes[136]. - General and administrative expenses increased by $7 million (4%) and $28 million (5%) for the three and nine months ended September 30, 2025, respectively, due to higher benefit-related and labor costs[146]. - Interest, net decreased by $10 million (2%) for the three months and by $43 million (3%) for the nine months ended September 30, 2025, attributed to lower interest rates on fixed-to-variable interest rate swaps[138]. Investments and Acquisitions - The company invested $648 million in the acquisition of Outrigger Energy II LLC, which includes a natural gas processing facility with a capacity of 0.27 Bcf/d and a 104-mile pipeline[111]. - The company plans to invest $3.0 billion in expansion projects, acquisitions, and contributions to joint ventures during 2025[112]. - Total capital expenditures for the nine months ended September 30, 2025, were $2,206 million, with expected total capital investments for 2025 at $4,086 million[180]. Debt and Cash Flow - The company's Net Debt as of September 30, 2025, is calculated at $32,580 million, with cash and cash equivalents of $71 million[129]. - Cash flows from operations generated $4,225 million in the first nine months of 2025, up from $4,125 million in 2024, reflecting a $100 million increase[171]. - Short-term debt as of September 30, 2025, was $1,081 million, down from $2,009 million as of December 31, 2024[175]. - Working capital deficits improved by $1,160 million from December 31, 2024, primarily due to a $1,125 million decrease in senior notes maturing in the next twelve months[176]. Segment Performance - Segment EBDA for Natural Gas Pipelines increased by $106 million (8%) and $270 million (7%) for the three and nine months ended September 30, 2025, respectively[148]. - Revenues for the Products Pipelines segment decreased by $34 million (5%) and $184 million (8%) for the three and nine months ended September 30, 2025, respectively[156]. - The East segment of Natural Gas Pipelines saw a $60 million (10%) increase for the three months ended September 30, 2025, driven by increased rates related to weather-driven demand[153]. - Midstream segment EBDA increased by $48 million (11%) for the three months ended September 30, 2025, primarily due to increased demand for services on Texas intrastate systems[155]. Market and Operational Risks - The company’s expectations for 2025 involve risks and uncertainties, advising caution in reliance on forward-looking statements[113]. - There have been no material changes in market risk exposures affecting the disclosures presented as of December 31, 2024[195].