How did Kinder Morgan perform in Q2 2025 compared with Q2 2024?

Net income attributable to KMI rose 24% to $715 million from $575 million, and Adjusted Net Income rose 13% to $619 million. Reported EPS rose 23% to $0.32 and Adjusted EPS rose 12% to $0.28. Adjusted EBITDA reached a record $1,972 million, up 6%. The gains were driven mainly by Natural Gas Pipelines and Terminals, partly offset by weaker Products Pipelines and CO2 results.

What is the status of KMI's project backlog and growth pipeline?

Backlog stood at $9.3 billion at quarter-end, up 6% from $8.8 billion in Q1, after about $750 million of projects were placed in service. Roughly 93% is natural gas related and about half supports power generation. Notable additions include the TAP project ($112 million), the North Extension ($454 million, KM share $170 million), and the Texas Arkansas Power project ($250 million). The Gulf Coast Express expansion is expected in service in mid-2026, and the Evangeline Pass second phase was placed in service in July 2025.

Is the dividend sustainable, and how does the balance sheet look?

The board approved a $0.2925 quarterly dividend ($1.17 annualized), a 2% increase, payable August 15, 2025. Dividends paid were $654 million in the quarter, and quarterly FCF of $1.0 billion covered that amount, although FCF after dividends for the six months was only $102 million. Net Debt-to-Adjusted EBITDA was 4.0x, unchanged from year-end 2024, and management targets 3.8x by year-end 2025. Moody's and S&P both carry positive outlooks, which supports the investment-grade rating.

What are the main risks flagged in the release?

Management cited tariffs on steel and components as an escalating cost factor, though it estimated only about a 1% impact on project costs for projects with domestic steel sourcing. Commodity price weakness hurt Products Pipelines and CO2 earnings, and the expiration of legacy contracts affected Products results. Volumes at Haynesville gathering fell 6%, and forward-looking statements are subject to regulatory, permitting, and counterparty risks.

What should investors keep in mind about the non-GAAP figures and guidance?

The results are preliminary and unaudited. Adjusted measures exclude Certain Items such as derivative fair value changes, which were a $(95) million benefit in Q2 2025 and would otherwise inflate or depress reported earnings. For 2025, KMI budgeted net income of $2.8 billion, Adjusted EPS of $1.27, and Adjusted EBITDA of $8.3 billion, based on $68/bbl WTI and $3.00/MMBtu Henry Hub. The company expects to exceed budget by at least the Outrigger Energy II contribution, which is not included in those budget figures.

KMI/EP-PC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 16, 2025. Cited figures are marked; the original filing is the authoritative source.

Kinder Morgan (KMI) reported strong second-quarter 2025 results, with net income attributable to KMI of $715 million^a, up 24% from $575 million in Q2 2024, and Adjusted Net Income of $619 million, up 13%.

Adjusted EPS rose 12% to $0.28^b and reported EPS rose 23% to $0.32. Adjusted EBITDA reached a record $1,972 million, up 6% year over year. Cash flow from operations was $1.6 billion and free cash flow was $1.0 billion for the quarter, while Net Debt-to-Adjusted EBITDA held at 4.0x.

Management highlighted growth in natural gas and LNG demand, with the Natural Gas Pipelines and Terminals segments contributing more than in the prior-year period. Products Pipelines and CO2 segments were weaker, pressured by lower commodity prices and the expiration of legacy contracts ahead of the Double H conversion. The project backlog rose 6% sequentially to $9.3 billion^c, net of about $750 million placed in service, and about 93% of it is natural gas related.

Management expects the remaining $7.6 billion^d of backlog to carry a first-full-year Project EBITDA multiple of roughly 5.6x. Several large expansions were announced or advanced, including the $3.5 billion SNG South System Expansion 4 and the $1.7 billion Mississippi Crossing project, both filed with FERC on June 30, 2025, along with the Trident expansion to 2.0 Bcf/d. Management also flagged tariffs as a manageable cost issue, estimating roughly a 1% impact on projects with domestic steel sourcing, and noted tax benefits from the recently passed budget reconciliation bill.

For 2025, KMI reiterated budgeted net income of $2.8 billion, Adjusted EPS of $1.27, and Adjusted EBITDA of $8.3 billion, and expects to exceed budget by at least the contribution from the Outrigger Energy II acquisition. The quarterly dividend was set at $0.2925 per share ($1.17 annualized), a 2% increase, and the rating agencies' positive outlooks from Moody's and S&P support the company's investment-grade profile. Investors should note that these are preliminary, unaudited results, and that the non-GAAP figures are adjusted for Certain Items such as derivative fair value changes, which swung $(95) million in the quarter.

02—Key points

Key Highlights

Net income attributable to KMI rose 24% to $715 million, and Adjusted Net Income rose 13% to $619 million, driven by higher Natural Gas Pipelines and Terminals earnings.
Adjusted EBITDA hit a record $1,972 million, up 6% year over year, while six-month Adjusted EBITDA grew 3% to $4,129 million.
Backlog grew 6% sequentially to $9.3 billion (about 93% natural gas), with the remaining $7.6 billion expected to yield a roughly 5.6x first-full-year Project EBITDA multiple.
Quarterly free cash flow was $1.0 billion after $647 million of capex, but FCF after dividends fell to $348 million from $465 million a year earlier, and six-month FCF after dividends was only $102 million.
Leverage was steady at 4.0x Net Debt-to-Adjusted EBITDA, with Moody's moving its outlook to positive (Baa2) and S&P holding a positive outlook (BBB).
Major new projects were advanced, including the $3.5 billion SNG South System Expansion 4 and the $1.7 billion Mississippi Crossing (both filed with FERC June 30, 2025) and the Trident expansion to 2.0 Bcf/d at about $1.8 billion.
Products Pipelines and CO2 segment earnings declined year over year on weaker commodity prices and the expiration of legacy contracts, and the company reiterated its 2025 dividend of $1.17 per share.

03—Questions

Frequently Asked Questions

How did Kinder Morgan perform in Q2 2025 compared with Q2 2024?
Net income attributable to KMI rose 24% to $715 million from $575 million, and Adjusted Net Income rose 13% to $619 million. Reported EPS rose 23% to $0.32 and Adjusted EPS rose 12% to $0.28. Adjusted EBITDA reached a record $1,972 million, up 6%. The gains were driven mainly by Natural Gas Pipelines and Terminals, partly offset by weaker Products Pipelines and CO2 results.
What is the status of KMI's project backlog and growth pipeline?
Backlog stood at $9.3 billion at quarter-end, up 6% from $8.8 billion in Q1, after about $750 million of projects were placed in service. Roughly 93% is natural gas related and about half supports power generation. Notable additions include the TAP project ($112 million), the North Extension ($454 million, KM share $170 million), and the Texas Arkansas Power project ($250 million). The Gulf Coast Express expansion is expected in service in mid-2026, and the Evangeline Pass second phase was placed in service in July 2025.
Is the dividend sustainable, and how does the balance sheet look?
The board approved a $0.2925 quarterly dividend ($1.17 annualized), a 2% increase, payable August 15, 2025. Dividends paid were $654 million in the quarter, and quarterly FCF of $1.0 billion covered that amount, although FCF after dividends for the six months was only $102 million. Net Debt-to-Adjusted EBITDA was 4.0x, unchanged from year-end 2024, and management targets 3.8x by year-end 2025. Moody's and S&P both carry positive outlooks, which supports the investment-grade rating.
What are the main risks flagged in the release?
Management cited tariffs on steel and components as an escalating cost factor, though it estimated only about a 1% impact on project costs for projects with domestic steel sourcing. Commodity price weakness hurt Products Pipelines and CO2 earnings, and the expiration of legacy contracts affected Products results. Volumes at Haynesville gathering fell 6%, and forward-looking statements are subject to regulatory, permitting, and counterparty risks.
What should investors keep in mind about the non-GAAP figures and guidance?
The results are preliminary and unaudited. Adjusted measures exclude Certain Items such as derivative fair value changes, which were a $(95) million benefit in Q2 2025 and would otherwise inflate or depress reported earnings. For 2025, KMI budgeted net income of $2.8 billion, Adjusted EPS of $1.27, and Adjusted EBITDA of $8.3 billion, based on $68/bbl WTI and $3.00/MMBtu Henry Hub. The company expects to exceed budget by at least the Outrigger Energy II contribution, which is not included in those budget figures.

04—Continue

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