Kinder Morgan(US:KMI)2025-10-22 21:32Financial Data and Key Metrics Changes - The company reported a 6% increase in EBITDA and a 16% growth in adjusted EPS year-on-year, reflecting strong underlying business performance and successful execution of growth projects [11][19][20] - Net income attributable to the company was $628 million, with EPS at $0.28 per share, consistent with the third quarter of 2024 [19] - The net debt to adjusted EBITDA ratio improved to 3.9 times, down from 4.1 times at the end of the first quarter [21][22] Business Line Data and Key Metrics Changes - The natural gas segment, which constitutes two-thirds of the business, outperformed its budget, with transport volumes up 6% compared to the third quarter of 2024 [11][15] - Natural gas gathering volumes increased by 9% year-on-year, with significant contributions from the Haynesville and Eagle Ford systems [15] - Refined product volumes decreased by 1% in the quarter compared to the previous year, while crude and condensate volumes fell by 3% [16] Market Data and Key Metrics Changes - The company transports over 40% of the natural gas in the U.S., including significant volumes to LNG export facilities and Mexico [12][13] - Internal projections estimate a 28 BCF per day increase in natural gas demand by 2030, driven by LNG exports and power generation [12][13] Company Strategy and Development Direction - The company emphasizes its long-term strategy focused on natural gas transportation, with over $9 billion in approved projects aimed at expanding pipeline and terminal networks [9][10] - The company is actively pursuing over $10 billion in potential projects, primarily in natural gas, indicating strong demand for its services [12][27] - The company aims to maintain a disciplined approach to capital deployment, with a backlog multiple below six times [11][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant growth in LNG feed gas demand, expecting demand to double between 2024 and 2030 [4][5] - The company remains confident in its strategy and execution, anticipating strong cash flow benefits from tax reforms and a favorable regulatory environment [22][23] - Management noted that while the base business is relatively flat, capital projects will drive substantial growth in EBITDA and EPS for years to come [10][11] Other Important Information - The company declared a quarterly dividend of $0.2925 per share, representing a 2% increase over the previous year [19] - The company is exploring opportunities to expand its gas infrastructure to meet growing demand, particularly in the power generation sector [16][47] Q&A Session Summary Question: What has driven the improved outlook for the $10 billion opportunity set? - Management indicated that the opportunities are primarily in natural gas, supporting LNG exports and power generation, with projects across the southern U.S. [27] Question: How does the Western Gateway project compare to Oneok's competing project? - Management explained that the Western Gateway project would provide additional capacity to serve the growing Arizona market and connect to California and Las Vegas [31] Question: What is the competitive landscape for Kinder Morgan? - Management acknowledged that while competition exists, the company's existing footprint and track record of delivering projects on time and on budget provide a competitive advantage [38] Question: What is the outlook for the CO2 business? - Management expressed interest in supplying CO2 but emphasized the need for a thorough risk-return analysis before considering investments in new technologies [110][111] Question: How does the company view the refined products market in California? - Management refrained from speculating on the California market but noted that the Western Gateway pipeline could adapt to changes in demand [94]