01—Abstract
Summary
Summary of the 8-K filed October 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Kinder Morgan (KMI) reported third-quarter 2025 results on October 22, 2025, with GAAP net income attributable to KMI of $628 milliona, roughly flat versus $625 million a year earlier, and GAAP EPS of $0.28, also flat.
Excluding Certain Items, Adjusted Net Income rose 16% to $648 millionb and Adjusted EPS rose 16% to $0.29. Adjusted EBITDA was $1,991 million, up 6%. Cash flow from operations reached $1.4 billion (up 13%) and FCF after capex was $0.6 billion (up 5%).
Net Debt-to-Adjusted EBITDA ended the quarter at 3.9 times, down from 4.0 times at year-end 2024. The board declared a quarterly dividend of $0.2925c per share, a 2% increase year over year. Management emphasized growing natural gas demand driven by LNG exports and power generation.
Contracted LNG feedgas commitments are about 8 Bcf/d and are expected to reach nearly 12 Bcf/d by the end of 2028. The project backlog stands at $9.3 billiond, about 90% of it natural gas, with the remaining $7.9 billion (excluding CO2 EOR and gathering and processing projects) carrying a first-full-year Project EBITDA multiple of about 5.7 times. KMI expects to exceed its 2025 budget, mainly because of the Outrigger Energy II acquisition, partly offset by weaker D3 RIN prices and volumes.
Its 2025 budget calls for Adjusted EBITDA of $8.3 billion and a year-end Net Debt-to-Adjusted EBITDA ratio of 3.8 times, excluding Outrigger. Segment results were mixed: Natural Gas Pipelines and Products Pipelines improved, while CO2 declined on lower oil, CO2 and RIN prices. The filing also flags several growth items.
These include the roughly $1.8 billion Trident Intrastate Pipeline, the $1.7 billion Mississippi Crossing project, the approximately $3.5 billion (KM-share about $1.8 billion) SSE4 expansion, and the Western Gateway Pipeline open season launched with Phillips 66 on October 20, 2025. Notably, the 8-K itself is a furnished (non-filed) Item 2.02 report, and the figures are preliminary and unaudited.
02—Key points
Key Highlights
- Adjusted EPS of $0.29 rose 16% year over year, while GAAP EPS was flat at $0.28; net income attributable to KMI was $628 million versus $625 million.
- Adjusted EBITDA reached $1,991 million in Q3 2025, up 6%, and nine-month Adjusted EBITDA of $6,120 million was up 4%.
- Cash flow from operations was $1.4 billion (up 13%) and FCF after capex was $0.6 billion (up 5%), though FCF after dividends was negative $33 million in the quarter.
- Net Debt-to-Adjusted EBITDA improved to 3.9x at September 30, 2025, from 4.0x at year-end 2024, and is budgeted to reach 3.8x by year-end 2025.
- Project backlog stands at $9.3 billion, roughly 90% natural gas, with the remaining projects expected to generate a first-full-year Project EBITDA multiple of about 5.7x.
- KMI expects 2025 results to exceed budget, driven by the Outrigger Energy II acquisition, partly offset by weaker D3 RIN prices and volumes; the 2025 dividend outlook is $1.17 per share.
- Major growth projects include Trident Intrastate (~$1.8B, in service Q1 2027), Mississippi Crossing (~$1.7B, Q4 2028), and SSE4 (KM-share ~$1.8B), plus a new Western Gateway refined products pipeline open season with Phillips 66.
03—Questions
Frequently Asked Questions
Did Kinder Morgan's third-quarter 2025 earnings grow?
On a GAAP basis, earnings were essentially flat: net income attributable to KMI was $628 million versus $625 million, and EPS was $0.28 in both periods. Excluding Certain Items, Adjusted Net Income rose 16% to $648 million and Adjusted EPS rose 16% to $0.29. The gap between GAAP and adjusted results was driven mainly by a $24 million unrealized derivative loss in the quarter.
Is the dividend safe and growing?
KMI declared a $0.2925 quarterly dividend, payable November 17, 2025, to holders of record on November 3, 2025. That is a 2% increase over Q3 2024 and implies $1.17 annualized. Dividends paid in the first nine months totaled $1.95 billion, which exceeded FCF of $2.0 billion only narrowly, so FCF after dividends was just $69 million year to date and negative in the quarter ($33 million). Dividend coverage therefore depends on continued growth in operating cash flow and on the tax benefits management expects.
How strong is KMI's balance sheet?
Net Debt-to-Adjusted EBITDA was 3.9x at September 30, 2025, improved from 4.0x at year-end 2024, and management budgets 3.8x by year-end 2025. Credit ratings are Fitch BBB+ (upgraded August 2025), Moody's Baa2 and S&P BBB, with Moody's and S&P both on positive outlook. Net debt was $32.3 billion.
What drives KMI's growth outlook?
Management points to rising LNG export capacity, with contracted LNG feedgas expected to grow from about 8 Bcf/d to nearly 12 Bcf/d by end-2028, and expected power-sector gas demand. The backlog of $9.3 billion, weighted toward natural gas, carries a targeted first-full-year Project EBITDA multiple of about 5.7x. These projections are management forecasts and depend on permitting, construction timing and customer demand, which the filing does not guarantee.
Are the results final and audited?
No. The financial statements in Exhibit 99.1 are labeled preliminary and unaudited, and the press release is furnished under Item 2.02, so it is not deemed filed for Section 18 purposes. Non-GAAP measures such as Adjusted EBITDA, Adjusted EPS and FCF are reconciled to GAAP in the tables, but the company cautions they should not be used in isolation.
04—Continue