Kinder Morgan(US:KMI)2026-01-21 21:13Financial Performance - Fourth quarter net income attributable to Kinder Morgan, Inc. was $996 million, a 49% increase from $667 million in the fourth quarter of 2024[6] - Adjusted EBITDA for the fourth quarter was $2,271 million, up 10% compared to the fourth quarter of 2024[6] - Earnings per share (EPS) reached $0.45, a 50% increase from the fourth quarter of 2024, while Adjusted EPS was $0.39, up 22%[6] - Revenues for Q4 2025 reached $4.508 billion, a 16% increase from $3.987 billion in Q4 2024[41] - Net income attributable to Kinder Morgan, Inc. was $996 million for Q4 2025, up 49% from $667 million in Q4 2024[45] - Adjusted Net Income attributable to Kinder Morgan, Inc. increased by 22% to $866 million in Q4 2025 from $708 million in Q4 2024[45] - Adjusted EBITDA for the year ended December 31, 2025 was $8.391 billion, a 6% increase from $7.938 billion in 2024[45] - Net income attributable to Kinder Morgan, Inc. for the year ended December 31, 2025, was $3,056 million, a 17% increase from $2,613 million in 2024[56] - Adjusted EBITDA for the year ended December 31, 2025, reached $8,391 million, up from $7,938 million in 2024, representing a 5.7% growth[56] Cash Flow and Dividends - The company generated cash flow from operations of $1.7 billion and free cash flow (FCF) of $0.9 billion, representing increases of 12% and 18% respectively from the prior year[7] - KMI's 2026 budgeted adjusted net income is projected to be 5% higher than 2025, with Adjusted EPS expected to be $1.36, also up 5%[12] - The company plans to declare dividends of $1.19 per share for 2026, a 2% increase from 2025[12] - Declared dividends per share increased by 2% to $0.2925 in Q4 2025 from $0.2875 in Q4 2024[41] - Free cash flow (FCF) for the year ended December 31, 2025, was $2,891 million, compared to $3,006 million in 2024, indicating a decrease of 3.8%[59] Project and Operational Highlights - The project backlog at the end of the fourth quarter of 2025 was $10 billion, with natural gas projects accounting for approximately 90% of this backlog[10] - KMI completed a sale of its 25% non-operated interest in BPX Gathering LLC for $396 million, resulting in a pre-tax gain on sale of $123 million[23] - KMI has begun construction on the $1.8 billion Trident Intrastate Pipeline, expected to be in service in phases starting in 2027[23] - Natural gas transport volumes increased to 48,353 BBtu/d in Q4 2025, up 4.1% from 44,507 BBtu/d in Q4 2024[53] - Total refined product volumes decreased slightly to 1,612 MBbl/d in Q4 2025, compared to 1,644 MBbl/d in Q4 2024, reflecting a 1.9% decline[53] Financial Metrics and Ratios - Adjusted Net Income Attributable to Kinder Morgan, Inc. is calculated by adjusting net income for Certain Items, providing insight into core operational performance[31] - Adjusted EBITDA is utilized to evaluate leverage and is calculated by adjusting net income for Certain Items, DD&A, income tax expense, and interest[32] - The ratio of Net Debt-to-Adjusted EBITDA is a key performance target for the annual incentive compensation program[34] - Free Cash Flow (FCF) is calculated by reducing cash flow from operations for capital expenditures, providing additional insight into cash flow generation[36] - The company’s net debt as of December 31, 2025, was $31,716 million, slightly down from $31,725 million in 2024[56] Market Outlook and Risks - Total demand for natural gas is projected to grow by 17% through 2030, with long-term contracts to move 8 Bcf/d of natural gas feedstocks to LNG facilities, expected to increase to 12 Bcf/d by the end of 2028[8] - Forward-looking statements include expectations for long-term demand for KMI's assets and services, anticipated dividends, and capital projects[37] - Important factors affecting future performance include commodity prices, changes in supply and demand, and regulatory approvals for expansion projects[38] - The company emphasizes that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially[38] Cost and Expense Analysis - Operating income for the year ended December 31, 2025 was $4.724 billion, compared to $4.384 billion in 2024[41] - Interest expense for the year ended December 31, 2025 was $1.801 billion, slightly down from $1.844 billion in 2024[41] - Total operating costs for the year ended December 31, 2025 were $12.213 billion, an increase from $10.716 billion in 2024[41] Commodity Pricing - Realized weighted average oil price for Q4 2025 was $66.34 per Bbl, down from $67.24 per Bbl in Q4 2024[53] - Liquids utilization percentage for Q4 2025 was 92.9%, a decrease from 95.2% in Q4 2024[53]