Kinder Morgan Inc. KMI reported third-quarter 2025 adjusted earnings per share of 29 cents, which met the Zacks Consensus Estimate. The bottom line also increased year over year from 25 cents.
Total quarterly revenues of $4.15 billion beat the Zacks Consensus Estimate of $4.13 billion. The top line also increased from $3.70 billion in the prior-year quarter.
The in-line earnings and better-than-expected top line were primarily backed by business activities associated with natural gas pipelines.
Other midstream giants like Enterprise Products Partners LP EPD and Enbridge Inc. ENB are yet to report results. Both EPD and ENB generate stable cash flows from their vast network of midstream assets. While Enterprise Products is likely to report third-quarter earnings on Oct. 30, Enbridge is scheduled to post results on Nov. 7.
Segmental Analysis
Natural Gas Pipelines: In the September-ended quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA) jumped to $1.4 billion from $1.27 billion a year ago. The segment's performance benefited from higher transported and gathering volumes.
Product Pipelines: The segment’s EBDA in the third quarter was $288 million, an increase from $276 million recorded a year ago. The increased contributions were primarily due to higher volumes of diesel fuel in the pipeline.
Terminals: Kinder Morgan generated a quarterly EBDA of $274 million from the segment, higher than the year-ago period’s $267 million. Liquids utilization was almost on par with last year at a handsome 94.6%, which aided the business unit.
CO2: The segment’s EBDA was $136 million, plummeting from the year-ago quarter’s $160 million.
Operational Highlights
Expenses related to operations and maintenance totaled $786 million, down from $790 million registered a year ago. However, the total operating costs, expenses and other expenditures increased to $3.08 billion from $2.68 billion.
KMI’s project backlog was reported at $9.3 billion by the September-quarter end. The midstream energy major added that out of the total backlog, the proportion of natural gas projects is the maximum.
Balance Sheet
As of Sept. 30, 2025, KMI reported $71 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $31.3 billion.
Outlook
For this year, the midstream player projected net income attributable to KMI at $2.8 billion and estimated adjusted EPS at $1.27. Considering the financial conditions, by 2025-end, Kinder Morgan, currently carrying a Zacks Rank #3 (Hold), anticipates its net debt-to-adjusted EBITDA at 3.8x.
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Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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