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HOUSTON - Kinder Morgan, Inc. (NYSE:KMI) shares fell 2% after the energy infrastructure giant reported third-quarter adjusted earnings that missed analyst expectations despite revenue exceeding forecasts.
The company posted adjusted earnings per share of $0.29 for the third quarter, falling short of the $0.30 analyst consensus. Revenue came in at $4.15 billion, surpassing the $4.06 billion estimate. The company’s adjusted EBITDA rose 6% year-over-year to $1.99 billion, while net income attributable to KMI remained essentially flat at $628 million compared to $625 million in the same period last year.
Kinder Morgan also issued full-year 2025 adjusted EPS guidance of $1.27, slightly below the consensus estimate of $1.28, despite expectations to exceed its original budget due to contributions from the Outrigger Energy II acquisition completed in the first quarter.
"The United States continues to lead the world in natural gas production and in exports of liquefied natural gas, providing enhanced energy security to allies around the world," said Executive Chairman Richard D. Kinder. "With historic growth in global natural gas demand, a favorable federal regulatory landscape, and strong support from permitting agencies, the outlook for our company is exceptionally promising."
Natural gas transport volumes increased 6% YoY, primarily driven by LNG deliveries and expansion projects, while natural gas gathering volumes rose 9% across all assets. However, refined products volumes declined 1% compared to the third quarter of 2024, and crude and condensate volumes decreased 3%.
CEO Kim Dang highlighted the company’s strong cash flow generation, with cash flow from operations of $1.4 billion and free cash flow after capital expenditures of $0.6 billion, up 13% and 5% respectively from the prior year period.
"KMI is seeing an opportunity set more robust than at any time in the company’s history," Dang said. "U.S. LNG nameplate capacity is expected to more than double by 2030. We currently have long-term contracts to move almost 8 billion cubic feet per day of natural gas to LNG facilities."
The company maintained its quarterly dividend of $0.2925 per share, representing a 2% increase over the third quarter of 2024.
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