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Kinder Morgan Reports Second Quarter 2025 Financial Results
Article content HOUSTON — Kinder Morgan, Inc.'s (NYSE: KMI) board of directors today approved a cash dividend of $0.2925 per share for the second quarter ($1.17 annualized), payable on August 15, 2025, to stockholders of record as of the close of business on July 31, 2025. This dividend is a 2% increase over the second quarter of 2024. Article content KMI is reporting: Article content Second quarter net income attributable to KMI of $715 million, up 24% versus $575 million in the second quarter of 2024; and Adjusted Net Income Attributable to KMI of $619 million, 13% higher than the second quarter of 2024. Adjusted EBITDA of $1,972 million, up 6% versus the second quarter of 2024. Article content 'We are truly in an age of American global energy leadership. The United States has been the top global producer of natural gas for 15 consecutive years and the world's top exporter of liquefied natural gas (LNG) since 2023,' said Executive Chairman Richard D. Kinder. 'With historic growing natural gas demand forecasts, a positive federal regulatory environment, and highly supportive federal permitting agencies, the future for our company is very bright. We will continue to reap the benefit of a business model structured around long-term take-or-pay, fee-based contracts with credit-worthy customers,' Kinder concluded. Article content 'The company generated strong second quarter net income attributable to KMI and record Adjusted EBITDA, with increased financial contributions from our Natural Gas Pipelines and Terminals business segments versus the second quarter of 2024, very strong operational performance and project execution,' said Chief Executive Officer Kim Dang. Article content 'We continued to internally fund high-quality capital projects while generating cash flow from operations of $1.6 billion and $1.0 billion in free cash flow (FCF) after capital expenditures. Our balance sheet remains healthy, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times,' continued Dang. Article content 'A well-respected energy analyst recently noted that it's 'shaping up to be an incredible year for U.S. LNG growth, with record levels of feedgas demand and exports.' The longer term looks robust as well, as 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 (Bcf/d) of natural gas to LNG facilities and, upon completion of projects under construction, that amount is expected to grow to almost 12 Bcf/d by the end of 2028. We are also pursuing a substantial number of additional LNG feedgas opportunities,' said Dang. Article content 'Overall, total demand for natural gas is expected to grow by 20% through 2030, led by LNG exports. We are also actively pursuing well over 5 Bcf/d of opportunities to serve the natural gas power generation sector. Approximately 50% of our backlog is associated with projects supporting power generation. In the markets we serve, we expect nice growth in power demand in the coming years. With 66,000 miles of natural gas pipelines connected to all major basins and demand centers, along with over 700 Bcf of working gas storage capacity, we are confident that we will secure our share of additional natural gas infrastructure projects supporting rising natural gas demand,' said Dang. Article content 'Our project backlog reflects this strong natural gas demand. At the end of the second quarter of 2025, the backlog stood at $9.3 billion, net of approximately $750 million in projects placed in service. This constitutes a 6% increase compared to $8.8 billion at the end of the first quarter of 2025. Natural gas projects account for approximately 93% of our backlog. Article content 'In calculating backlog Project EBITDA multiples, we exclude both the capital and EBITDA from our CO 2 enhanced oil recovery projects and our gathering and processing projects, where first-full-year multiples are more favorable but the earnings are more uneven than with our other business segments. We expect the remaining $7.6 billion of projects in the backlog, when realized, to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.6 times,' continued Dang. Article content 'In contrast to the supportive federal permitting atmosphere, the application of escalating tariffs presents some challenges. However, at this point we do not believe that tariffs will have a significant impact on project economics. On existing projects, we have successfully reduced the potential impact by preordering critical project components, negotiating caps on cost increases, and securing domestic steel and mill capacity for our larger projects, which total two-thirds of our project backlog. For these projects, we currently estimate the impact of tariffs to be roughly one percent of project costs. Article content 'Additionally, we expect favorable tax benefits due to the recently passed budget reconciliation bill. The reinstatement of bonus depreciation and greater interest expense deductibility will lower our projected cash tax liability beginning in 2025 and we expect meaningful benefits in 2026 and 2027 as we put new projects into operation,' Dang concluded. Article content 2025 Outlook Article content We currently expect to exceed budget by at least the amount of contributions from the Outrigger Energy II acquisition that closed in the first quarter of 2025. For 2025, KMI budgeted net income attributable to KMI of $2.8 billion, up 8% versus 2024, and Adjusted EPS of $1.27, up 10% from 2024. KMI expects to declare dividends of $1.17 per share for 2025, a 2% increase from the dividends declared for 2024. The company also budgeted 2025 Adjusted EBITDA of $8.3 billion, up 4% versus 2024, and to end 2025 with a Net Debt-to-Adjusted EBITDA ratio of 3.8 times. These amounts do not include contributions from the Outrigger acquisition. Article content The budget assumes average annual prices for West Texas Intermediate (WTI) crude oil and Henry Hub natural gas of $68 per barrel and $3.00 per million British thermal units (MMBtu), respectively, consistent with the published forward curve available during the company's annual budget process. Article content This press release includes Adjusted Net Income Attributable to KMI, Adjusted EPS, Adjusted Segment EBDA, Adjusted EBITDA, Net Debt, FCF, and Project EBITDA, all of which are non-GAAP financial measures. For descriptions of these non-GAAP financial measures and reconciliations to the most comparable measures prepared in accordance with generally accepted accounting principles, please see 'Non-GAAP Financial Measures' and the tables accompanying our preliminary financial statements. Article content 'The Natural Gas Pipelines business segment's improved financial performance in the second quarter of 2025 relative to the second quarter of 2024 was due primarily to continued higher contributions from both our Texas Intrastate system and Tennessee Gas Pipeline (TGP),' said KMI President Tom Martin. Article content 'Natural gas transport volumes were up 3% compared to the second quarter of 2024 primarily due to LNG deliveries on TGP, as well as new contracts and LNG deliveries on our Texas Intrastate system. Natural gas gathering volumes were down 6% from the second quarter of 2024, across most of our G&P assets, primarily our Haynesville system. Article content 'While volumes were up across all commodities handled by the Products Pipelines business segment, contributions from the business segment were down compared to the second quarter of 2024 due to weak commodity prices and the expiration of legacy contracts in advance of our Double H pipeline conversion to natural gas liquids service. Both of these impacts were partially offset by higher transport rates and volumes. Total refined products volumes and crude and condensate volumes were both up 2%, compared to the second quarter of 2024,' Martin said. Article content ' Terminals business segment earnings were up compared to the second quarter of 2024. The increase was led by our Jones Act tanker fleet, which benefited from higher rates and remains fully contracted under term charter agreements. Our liquids terminals benefited from expansion projects placed into service as well as higher rates, primarily at our Houston Ship Channel facilities. While tonnage at our bulk terminals was down slightly due to higher coal tons handled in the prior year period resulting from the Baltimore bridge collapse, earnings from our bulk terminals were essentially flat to the second quarter of 2024,' continued Martin. Article content ' CO 2 business segment earnings, which include Energy Transition Ventures (ETV), were down compared to the second quarter of 2024 due to lower CO 2 and D3 RIN prices, partially offset by higher D3 RIN volumes generated through increased renewable natural gas sales,' said Martin. Article content On June 16, 2025, Moody's changed Kinder Morgan's rating outlook to positive, joining the positive outlook announced by S&P earlier in the year. Moody's and S&P have KMI's senior unsecured rating at Baa2 and BBB, respectively. The announcements were based on Kinder Morgan's continued earnings growth, conservative approach for funding investments, and favorable leverage levels. On May 1, 2025, KMI issued $1.1 billion of 5.15% senior notes due June 2030 and $750 million of 5.85% senior notes due June 2035 to repay outstanding commercial paper and maturing debt and for general corporate purposes. The interest rates on the notes were favorable compared to budgeted rates. Article content Natural Gas Pipelines Article content With an additional 500 million standard cubic feet commitment from an LNG customer, KMI's Trident Intrastate Pipeline project has been expanded from 1.5 Bcf/d to 2.0 Bcf/d of capacity, increasing the total project cost to approximately $1.8 billion. The roughly 216-mile project is designed to provide high-demand natural gas transportation service from Katy, Texas, to the industrial corridor near Port Arthur, Texas. Assuming the timely receipt of all required permits and approvals, KMI expects the project to be in service in the first quarter of 2027. Kinder Morgan Louisiana Pipeline (KMLP) entered into binding agreements with a new LNG customer for 1.0 Bcf/d of firm transportation that will underpin its approximately $112 million Texas Access Project (TAP). TAP is designed to provide KMLP shippers with firm transportation from Texas, including firm receipts from Trident, to new and existing markets in South Louisiana. KMLP has begun preliminary permitting work on the project, and assuming the timely receipt of all required permits and approvals, the project is expected to be placed in service in the fourth quarter of 2028. KMI plans to invest more than $500 million in its KinderHawk gathering system, backed by life-of-lease acreage dedications, to support projected production growth from the Haynesville Basin to meet increasing LNG capacity demands along the Gulf Coast. Natural Gas Pipeline Company of America (NGPL) signed a binding agreement with a third-party shipper to develop the North Extension project to expand its natural gas transportation capacity from its existing Iowa-Illinois Receipt Zones to a new proposed interconnect in NGPL's Market Delivery Zone. The approximately $454 million project (KM-share $170 million) is designed to provide up to 210,000 dekatherms per day (Dth/d) of incremental firm transportation service. Assuming the timely receipt of all required permits and approvals, KMI expects the project to be placed in service in the fourth quarter of 2028. NGPL has entered into a binding transaction with a third-party shipper to develop a project to expand its natural gas transportation capacity from its existing Texok and Iowa-Illinois Receipt Zones to new proposed interconnects along its Gulf Coast system in Texas and Arkansas. The approximately $250 million (KM-share approximately $94 million) Texas Arkansas Power project is designed to combine existing capacity with expansion capacity to provide up to 488,000 Dth/d of incremental firm transportation service. Assuming the timely receipt of all required permits and approvals, KMI expects the project to be placed in service in the first quarter of 2028. On June 30, 2025, TGP filed a certificate application with the FERC for the construction of its Mississippi Crossing (MSX) project after a successful pre-filing application earlier this year. The approximately $1.7 billion project is designed to transport up to 2.1 Bcf/d of natural gas to Southeast markets through the construction of approximately 208 miles of 42-inch and 36-inch pipeline and three new compressor stations. MSX will originate near Greenville, Mississippi, and connect to the existing TGP system and multiple third-party pipelines to provide critical access to natural gas sourced from multiple supply basins for delivery to Southern Natural Gas (SNG) and Transco near Butler, Alabama. Assuming the timely receipt of all required permits and approvals, the project is expected to be placed in service in the fourth quarter of 2028. SNG and Elba Express Company (EEC) filed a certificate application with the FERC on June 30, 2025, for authorization to construct and operate the South System Expansion 4 (SSE4) project. The approximately $3.5 billion project (KM-share approximately $1.8 billion, including EEC) is designed to increase SNG's South Main Line capacity by approximately 1.3 Bcf/d. SSE4 will be completed in two phases and is almost entirely comprised of brownfield looping and horsepower compression additions on the SNG and EEC pipeline systems. Assuming the timely receipt of all required permits and approvals, KMI expects to place the first phase of the project in service in the fourth quarter of 2028 and the second phase in the fourth quarter of 2029. Construction is progressing on the fully contracted Gulf Coast Express Pipeline expansion project. The $455 million expansion project (KM-share approximately $161 million) is designed to increase natural gas deliveries from the Permian Basin to South Texas markets by 570 MMcf/d. The project is expected to be in service in mid-2026. The second phase of the approximately $700 million Evangeline Pass project was placed in service earlier this month. The project involved modifications and enhancements to portions of the TGP and SNG systems in Mississippi and Louisiana, resulting in the delivery of approximately 2 Bcf/d of natural gas to Venture Global's Plaquemines LNG facility. Article content Products Pipelines Article content On July 1, 2025, KMI placed in service its most recent SFPP East Line Expansion project to Tucson, Arizona. The project created an additional 2,500 barrels per day of capacity to Tucson, and involved modifying valving and adding a drag reducing agent skid at SFPP's existing Deming pump station. The expansion is fully supported by a five-year take-or-pay agreement for all of the additional capacity. Article content Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of the people, communities and businesses we serve. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, more than 700 Bcf of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.9 Bcf per year. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO 2, renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks. Learn more about our work advancing energy solutions on the lower carbon initiatives page at Article content Please join Kinder Morgan, Inc. at 4:30 p.m. ET on Wednesday, July 16, at for a LIVE webcast conference call on the company's second quarter earnings. Article content As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA), along with the non-GAAP financial measures of Adjusted Net income attributable to Common Stock, in the aggregate and per share, Adjusted Segment EBDA, Adjusted Net income attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses and amortization of basis differences (previously known as amortization of excess cost of equity investments) related to our joint ventures (EBITDA), and Net Debt. Article content Our non-GAAP financial measures described below should not be considered alternatives to GAAP net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes. Article content Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in net income attributable to Kinder Morgan, Inc., but typically either (1) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), or (2) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation and casualty losses). (See the accompanying Tables 2, 3, 5 and 6.) We also include adjustments related to joint ventures (see ' Amounts associated with Joint Ventures' below). Article content The following table summarizes our Certain Items for the three and six months ended June 30, 2025 and 2024. Article content Notes (1) Gains or losses are reflected within non-GAAP financial measures when realized. (2) Three and six-month periods ended June 30, 2024 include a $41 million gain on sale of our CO 2 assets and the six-month period ended June 30, 2024 also includes a $29 million gain on sale of our Oklahoma midstream assets. (3) Represents the income tax provision on Certain Items plus discrete income tax items. Includes the impact of KMI's income tax provision on Certain Items affecting earnings from equity investments and is separate from the related tax provision recognized at the investees by the joint ventures which are also taxable entities. (4) Amount for the three-month period ended June 30, 2025 includes $(2) million reported within 'Earnings from equity investments' on the accompanying Preliminary Consolidated Statements of Income of 'Change in fair value of derivative contracts.' (5) Amounts for the periods ended June 30, 2025 and 2024 include $(1) million for each of the three-month periods and $1 million for each of the six-month periods reported within 'Interest, net' on the accompanying Preliminary Consolidated Statements of Income of 'Change in fair value of derivative contracts.' Article content Adjusted Net Income Attributable to Kinder Morgan, Inc. (KMI) is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, investors and other external users of our financial statements as a supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 1 and 2.) Article content Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, investors and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. (See the accompanying Table 2.) Article content Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors and other external users of our financial statements additional insight into performance trends across our business segments, our segments' relative contributions to our consolidated performance and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment's performance. (See the accompanying Table 3.) Article content Adjusted EBITDA is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, amortization of basis differences related to our joint ventures, income tax expense, and interest. We also include amounts from joint ventures for income taxes and DD&A (see ' Amounts associated with Joint Ventures' below). Adjusted EBITDA (on a rolling 12-months basis) is used by management, investors and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the GAAP measure most directly comparable to Adjusted EBITDA is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 2 and 5.) Article content Amounts associated with Joint Ventures – Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures (JVs) and consolidated JVs utilizing the same recognition and measurement methods used to record 'Earnings from equity investments' and 'Noncontrolling interests (NCI),' respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated JVs include the same adjustments (DD&A, amortization of basis differences, and income tax expense) with respect to the JVs as those included in the calculation of Adjusted EBITDA for our wholly-owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests. (See Tables 2, 5 and 6.) Although these amounts related to our unconsolidated JVs are included in the calculation of Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses or cash flows of such unconsolidated JVs. Article content Net Debt is calculated by subtracting from debt (1) cash and cash equivalents, (2) debt fair value adjustments, and (3) the foreign exchange impact on Euro-denominated bonds for which we have entered into currency swaps to convert that debt to U.S. dollars. Net Debt, on its own and in conjunction with our Adjusted EBITDA (on a rolling 12-months basis) as part of a ratio of Net Debt-to-Adjusted EBITDA, is a non-GAAP financial measure that is used by management, investors, and other external users of our financial information to evaluate our leverage. Our ratio of Net Debt-to-Adjusted EBITDA is also used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the most comparable measure to Net Debt is total debt as reconciled in the notes to the accompanying Preliminary Consolidated Balance Sheets in Table 5. Article content Project EBITDA is calculated for an individual capital project as earnings before interest expense, taxes, DD&A, and general and administrative expenses attributable to such project, or for JV projects, consistent with the methods described above under 'Amounts associated with Joint Ventures,' and in conjunction with capital expenditures for the project, is the basis for our Project EBITDA multiple. Management, investors, and others use Project EBITDA to evaluate our return on investment for capital projects before expenses that are generally not controllable by operating managers in our business segments. We believe the GAAP measure most directly comparable to Project EBITDA is the portion of net income attributable to a capital project. We do not provide the portion of budgeted net income attributable to individual capital projects (the GAAP financial measure most directly comparable to Project EBITDA) due to the impracticality of predicting, on a project-by-project basis through the second full year of operations, certain amounts required by GAAP, such as projected commodity prices, unrealized gains and losses on derivatives marked to market, and potential estimates for certain contingent liabilities associated with the project completion. Article content FCF is calculated by reducing cash flow from operations for capital expenditures (sustaining and expansion), and FCF after dividends is calculated by further reducing FCF for dividends paid during the period. FCF is used by management, investors, and other external users as an additional leverage metric, and FCF after dividends provides additional insight into cash flow generation. Therefore, we believe FCF is useful to our investors. We believe the GAAP measure most directly comparable to FCF is cash flow from operations. (See the accompanying Table 6.) Article content This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Generally the words 'expects,' 'believes,' 'anticipates,' 'plans,' 'will,' 'shall,' 'estimates,' 'projects,' and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements in this news release include, among others, express or implied statements pertaining to: the long-term demand for KMI's assets and services; KMI's 2025 expectations; anticipated dividends; KMI's capital projects, including the regulatory environment for projects and expected costs, completion timing and benefits of those projects; and the expected impact of tariffs. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although KMI believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance as to when or if any such forward-looking statements will materialize nor their ultimate impact on our operations or financial condition. Important factors that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements include: the timing and extent of changes in the supply of and demand for the products we transport and handle; trends expected to drive new natural gas demand for electricity generation; commodity prices; counterparty financial risk; changes in tariffs and trade restrictions, including potential adverse effects on financial and economic conditions; and the other risks and uncertainties described in KMI's reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year-ended December 31, 2024 (under the headings 'Risk Factors' and 'Information Regarding Forward-Looking Statements' and elsewhere), and its subsequent reports, which are available through the SEC's EDGAR system at and on our website at Forward-looking statements speak only as of the date they were made, and except to the extent required by law, KMI undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements. Article content Notes (1) Includes basis differences related to our JVs (previously known as and presented separately as amortization of excess cost of equity investments). (2) Adjusted Net Income Attributable to Kinder Morgan, Inc. is Net income attributable to Kinder Morgan, Inc. adjusted for Certain Items. Adjusted EPS calculation uses Adjusted Net Income Attributable to Common Stock. See Table 2 for reconciliations. Article content Table 2 Kinder Morgan, Inc. and Subsidiaries Preliminary Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc., to Adjusted Net Income Attributable to Common Stock and to Adjusted EBITDA Reconciliations (In millions, unaudited) Three Months Ended June 30, % change Six Months Ended June 30, % change 2025 2024 2025 2024 Net income attributable to Kinder Morgan, Inc. $ 715 $ 575 24 % $ 1,432 $ 1,321 8 % Certain Items (1) Change in fair value of derivative contracts (95 ) 2 (11 ) 52 Gain on divestiture — (41 ) — (70 ) Income tax Certain Items (2 ) 10 (37 ) 1 Other 1 2 1 2 Total Certain Items (96 ) (27 ) (256 )% (47 ) (15 ) (213 )% Adjusted Net Income Attributable to Kinder Morgan, Inc. $ 619 $ 548 13 % $ 1,385 $ 1,306 6 % Net income attributable to Kinder Morgan, Inc. $ 715 $ 575 24 % $ 1,432 $ 1,321 8 % Total Certain Items (2) (96 ) (27 ) (47 ) (15 ) Net income allocated to participating securities (4 ) (3 ) (8 ) (7 ) Adjusted Net Income Attributable to Common Stock $ 615 $ 545 13 % $ 1,377 $ 1,299 6 % Net income attributable to Kinder Morgan, Inc. $ 715 $ 575 24 % $ 1,432 $ 1,321 8 % Total Certain Items (2) (96 ) (27 ) (47 ) (15 ) DD&A 616 584 1,226 1,171 Income tax expense (3) 179 158 400 376 Interest, net (4) 453 465 902 935 Amounts associated with joint ventures Unconsolidated JV DD&A (5) 100 99 200 197 Remove consolidated JV partners' DD&A (16 ) (15 ) (31 ) (31 ) Unconsolidated JV income tax expense (6) 21 19 47 41 Adjusted EBITDA $ 1,972 $ 1,858 6 % $ 4,129 $ 3,995 3 % Article content Notes (1) See table included in 'Non-GAAP Financial Measures—Certain Items.' (2) For a detailed listing, see the above reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc. (3) To avoid duplication, adjustments for income tax expense for the periods ended June 30, 2025 and 2024 exclude $(2) million and $10 million for the three-month periods, respectively, and $(37) million and $1 million for the six-month periods, respectively, which amounts are already included within 'Certain Items.' See table included in 'Non-GAAP Financial Measures—Certain Items.' (4) To avoid duplication, adjustments for interest, net for the periods ended June 30, 2025 and 2024 exclude $(1) million for each of the three-month periods and $1 million for each of the six-month periods which amounts are already included within 'Certain Items.' See table included in 'Non-GAAP Financial Measures—Certain Items.' (5) Includes amortization of basis differences related to our JVs which was previously presented separately as amortization of excess cost of equity investments. (6) Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL and Products (SE) Pipe Line equity investments. The impact of KMI's income tax provision on Certain Items affecting earnings from equity investments is included within 'Certain Items' above. Article content Notes (1) Includes revenues, earnings from equity investments, operating expenses, other (income) expense, net, and other, net. Operating expenses include costs of sales, operations and maintenance expenses, and taxes, other than income taxes. The composition of Segment EBDA is not addressed nor prescribed by generally accepted accounting principles. (2) Effective January 1, 2025, amortization of basis differences related to our joint ventures (previously known as amortization of excess cost of equity investments) is included within 'Earnings from equity investments' in our accompanying consolidated statements of income for the periods ended June 30, 2025 and 2024, and therefore is included within Segment EBDA. As a result, Segment EBDA for the periods ended June 30, 2024 has been adjusted to conform to the current presentation which decreased Segment EBDA for the three-month period by $8 million, $3 million and $2 million for our Natural Gas Pipelines, Products Pipelines and CO 2 business segments, respectively, and for the six-month period by $16 million, $5 million and $4 million for our Natural Gas Pipelines, Products Pipelines and CO 2 business segments, respectively. (3) See 'Non-GAAP Financial Measures—Certain Items.' Article content Table 4 Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Natural Gas Pipelines Transport volumes (BBtu/d) 44,585 43,123 45,277 43,832 Sales volumes (BBtu/d) 2,832 2,459 2,716 2,528 Gathering volumes (BBtu/d) 3,931 4,203 3,953 4,194 NGLs (MBbl/d) 39 42 35 39 Products Pipelines (MBbl/d) Gasoline (2) 1,016 1,009 975 965 Diesel fuel 369 354 353 345 Jet fuel 325 313 314 295 Total refined product volumes 1,710 1,676 1,642 1,605 Crude and condensate 503 493 490 475 Total delivery volumes (MBbl/d) 2,213 2,169 2,132 2,080 Terminals Liquids leasable capacity (MMBbl) 78.7 78.6 78.7 78.6 Liquids leased capacity % 94.4 % 94.3 % 94.3 % 94.1 % Bulk transload tonnage (MMtons) 12.8 14.1 25.3 27.7 CO 2 SACROC oil production 18.42 18.91 18.84 19.01 Yates oil production 6.01 6.09 5.98 6.17 Other 1.09 1.20 1.09 1.22 Total oil production – net (MBbl/d) (3) 25.52 26.20 25.91 26.40 NGL sales volumes – net (MBbl/d) (3) 9.03 7.97 9.16 8.39 CO 2 sales volumes – net (Bcf/d) 0.291 0.316 0.301 0.326 RNG sales volumes (BBtu/d) 12 9 10 8 Realized weighted average oil price ($ per Bbl) $ 67.60 $ 69.47 $ 67.99 $ 69.08 Realized weighted average NGL price ($ per Bbl) $ 32.08 $ 27.29 $ 33.74 $ 27.78 Article content Notes (1) Volumes for acquired assets are included for all periods. However, EBDA contributions from acquisitions are included only for periods subsequent to their acquisition. Volumes for assets divested, idled and/or held for sale are excluded for all periods presented. (2) Gasoline volumes include ethanol pipeline volumes. (3) Net of royalties and outside working interests. Article content Table 5 Kinder Morgan, Inc. and Subsidiaries Preliminary Consolidated Balance Sheets (In millions, unaudited) June 30, December 31, 2025 2024 Assets Cash and cash equivalents $ 82 $ 88 Other current assets 2,404 2,433 Property, plant and equipment, net 38,818 38,013 Investments 7,854 7,845 Goodwill 20,084 20,084 Deferred charges and other assets 3,129 2,944 Total assets $ 72,371 $ 71,407 Liabilities and Stockholders' Equity Short-term debt $ 788 $ 2,009 Other current liabilities 2,845 3,092 Long-term debt 31,688 29,779 Debt fair value adjustments 183 102 Other 4,786 4,558 Total liabilities 40,290 39,540 Other stockholders' equity 30,794 30,626 Accumulated other comprehensive loss (24 ) (95 ) Total KMI stockholders' equity 30,770 30,531 Noncontrolling interests 1,311 1,336 Total stockholders' equity 32,081 31,867 Total liabilities and stockholders' equity $ 72,371 $ 71,407 Net Debt (1) $ 32,348 $ 31,725 Adjusted EBITDA Twelve Months Ended (2) Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Last Twelve Months Adjusted EBITDA June 30, December 31, 2025 2024 Net income attributable to Kinder Morgan, Inc. $ 2,724 $ 2,613 Total Certain Items (3) (74 ) (42 ) DD&A 2,409 2,354 Income tax expense (4) 764 739 Interest, net (4) 1,816 1,849 Amounts associated with joint ventures Unconsolidated JV DD&A (5) 412 409 Less: Consolidated JV partners' DD&A (62 ) (62 ) Unconsolidated JV income tax expense 83 78 Adjusted EBITDA $ 8,072 $ 7,938 Net Debt-to-Adjusted EBITDA 4.0 4.0 Article content Notes (1) Amounts calculated as total debt, less (i) cash and cash equivalents; (ii) debt fair value adjustments; and (ii) the foreign exchange impact on our Euro denominated debt of $46 million and $(25) million as of June 30, 2025 and December 31, 2024, respectively, as we have entered into swaps to convert that debt to U.S.$. (2) Reflects the rolling 12-month amounts for each period above. (3) See table included in 'Non-GAAP Financial Measures—Certain Items.' (4) Amounts are adjusted for Certain Items. See 'Non-GAAP Financial Measures—Certain Items' for more information. (5) Includes amortization of basis differences related to our JVs which was previously presented separately as amortization of excess cost of equity investments. Article content Notes (1) Periods ended June 30, 2025 and 2024 exclude distributions from equity investments in excess of cumulative earnings of $47 million and $46 million for the three-month periods, respectively, and $92 million and $81 million for the six-month periods, respectively. These are included in cash flows from investing activities on our consolidated statement of cash flows. Article content Article content Article content Article content Contacts Article content
Yahoo
3 hours ago
- Business
- Yahoo
Emera Incorporated Announces Dividend Rates for Series A and Series B First Preferred Shares
HALIFAX, Nova Scotia, July 16, 2025--(BUSINESS WIRE)--Emera Incorporated ("Emera" or the "Company") (TSX/NYSE: EMA) announced today the applicable dividend rates for its Cumulative Rate Reset First Preferred Shares, Series A (the "Series A Shares") and Cumulative Floating Rate First Preferred Shares, Series B (the "Series B Shares"), in each case, payable if, as and when declared by the Board of Directors of the Company: 4.951% per annum on the Series A Shares ($0.3094 per Series A Share per quarter), being equal to the sum of the Government of Canada bond yield as at July 16, 2025, plus 1.84%, payable quarterly on the 15th of February, May, August and November of each year during the five-year period commencing on August 15, 2025 and ending on (and inclusive of) August 14, 2030; and 4.542% on the Series B Shares for the three-month period commencing on August 15, 2025 and ending on (and inclusive of) November 14, 2025 ($0.2862 per Series B Share for the quarter), being equal to the sum of the three-month Government of Canada treasury bill yield rate as at July 16, 2025, plus 1.84% (calculated on the basis of the actual number of days elapsed during the quarter divided by 365), payable on the 15th of November 2025. The quarterly floating dividend rate will be reset every quarter. Subject to certain conditions set out in the prospectus supplement of the Company dated May 26, 2010, to the short form base shelf prospectus of the Company dated May 19, 2010 (collectively, the "Prospectus"), on August 15, 2025 (the "Conversion Date"): (a) the holders of Series A Shares have the right, at their option: to retain any or all of their Series A Shares and continue to receive a fixed rate quarterly dividend; or to convert any or all of their Series A Shares, on a one-for-one basis, into Series B Shares and receive a floating rate quarterly dividend, and (b) the holders of Series B Shares have the right, at their option: to retain any or all of their Series B Shares and continue to receive a floating rate quarterly dividend; or to convert any or all of their Series B Shares, on a one-for-one basis, into Series A Shares and receive a fixed rate quarterly dividend. The conversion of Series A Shares is subject to the conditions that: (i) if the Company determines, after having taken into account all shares tendered for conversion by holders of Series A Shares that there would remain outstanding on the Conversion Date less than 1,000,000 Series A Shares, all remaining Series A Shares will automatically be converted into Series B Shares on a one-for-one basis on the Conversion Date, and (ii) alternatively, if the Company determines that, after conversion, there would remain outstanding on the Conversion Date less than 1,000,000 Series B Shares, then no Series A Shares will be converted into Series B Shares. The conversion of Series B Shares is subject to the conditions that: (i) if the Company determines, after having taken into account all shares tendered for conversion by holders of Series B Shares that there would remain outstanding on the Conversion Date less than 1,000,000 Series B Shares, all remaining Series B Shares will automatically be converted into Series A Shares on a one-for-one basis on the Conversion Date, and (ii) alternatively, if the Company determines that, after conversion, there would remain outstanding on the Conversion Date less than 1,000,000 Series A Shares, then no Series B Shares will be converted into Series A Shares. In either case, the Company will give written notice to that effect to the holders of Series A Shares and the holders of Series B Shares at least seven days prior to the Conversion Date, subject to the terms set out in the Prospectus. Holders of Series A Shares or Series B Shares who wish to exercise their conversion right should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from July 16, 2025, until 5:00 p.m. (EDT) on July 31, 2025. Notices received after this deadline will not be valid. As such, it is recommended that this be done well in advance of the deadline in order to provide their broker or other nominee with adequate time to complete the necessary steps. Holders of Series A Shares and Series B Shares will have the opportunity to convert their shares again on August 15, 2030, and every five years thereafter as long as the shares remain outstanding. For more information on the terms of, and risks associated with, an investment in Series A Shares and Series B Shares, please see the Company's Prospectus, which is available on SEDAR+ at Forward Looking Information This news release contains forward-looking information within the meaning of applicable securities laws, including without limitation, statements about Series A Shares and Series B Shares. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera management's current beliefs and are based on information currently available to Emera management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera's assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera's securities regulatory filings, including under the heading "Enterprise Risk and Risk Management" in Emera's annual Management's Discussion and Analysis, and under the heading "Principal Financial Risks and Uncertainties" in the notes to Emera's annual and interim financial statements, which can be found on SEDAR+ at or on EDGAR at About Emera Emera (TSX/NYSE: EMA) is a leading North American provider of energy services headquartered in Halifax, Nova Scotia, with investments in regulated electric and natural gas utilities, and related businesses and assets. The Emera family of companies delivers safe, reliable energy to approximately 2.6 million customers in Canada, the United States and the Caribbean. Our team of 7,600 employees is committed to our purpose of energizing modern life and delivering a cleaner energy future for all. Emera's common and preferred shares are listed and trade on the Toronto Stock Exchange and its common shares are listed and trade on the New York Stock Exchange. Additional information can be accessed at on SEDAR+ at and on EDGAR at View source version on Contacts Emera Inc. Investor Relations Dave Bezanson, VP, Investor Relations & Media Dina Bartolacci Seely, Manager, Corporate Communications902-478-0080media@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 hours ago
- Business
- Yahoo
Bank of America (BAC) Reports Second Quarter Earnings With Net Income of US$7 Billion
Bank of America recently announced second-quarter earnings, revealing a net interest income of $14.67 billion and net income of $7.12 billion, reflecting strong financial health compared to the previous year. These positive earnings coincide with a 24% stock price increase over the last quarter. During this period, the company declared an increase in its quarterly dividend and redeemed significant senior notes, presenting a solid financial footing. While the broader market experienced varied fluctuations amidst geopolitical and monetary policy developments, Bank of America's robust performance in earnings and dividend movements may have strengthened investor confidence, contributing to its stock appreciation. Buy, Hold or Sell Bank of America? View our complete analysis and fair value estimate and you decide. AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent earnings announcement from Bank of America highlights the company's robust financial health, with a US$14.67 billion net interest income and a net US$7.12 billion income. This has coincided with a 24% stock price rise over the last quarter. Over a longer-term period of five years, the company's total shareholder return, including dividends, has been 113.76%. This impressive performance highlights the gains shareholders have seen, providing significant context to its short-term price movements. Compared to the US Banks industry, Bank of America's past one-year returns lagged, underscoring the challenges it faces despite recent successes. Notably, the increased dividend announcement combined with the strategic redemption of senior notes suggests that the company is laying a strong foundation for future growth, which could positively influence revenue and earnings forecasts. With the current share price at US$46.15, Bank of America is trading at a 15.9% discount to the consensus analyst price target of US$52.35. This indicates potential room for appreciation if the company achieves its projected revenue and earnings growth, underpinned by ongoing digital engagement and credit diversification efforts. The strong second-quarter results could bolster confidence in these growth catalysts, aligning with analysts' expectations for continued advancement. Review our historical performance report to gain insights into Bank of America's track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BAC. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
National Post
3 hours ago
- Business
- National Post
Emera Incorporated Announces Dividend Rates for Series A and Series B First Preferred Shares
Article content HALIFAX, Nova Scotia — Emera Incorporated ('Emera' or the 'Company') (TSX/NYSE: EMA) announced today the applicable dividend rates for its Cumulative Rate Reset First Preferred Shares, Series A (the 'Series A Shares') and Cumulative Floating Rate First Preferred Shares, Series B (the 'Series B Shares'), in each case, payable if, as and when declared by the Board of Directors of the Company: Article content 4.951% per annum on the Series A Shares ($0.3094 per Series A Share per quarter), being equal to the sum of the Government of Canada bond yield as at July 16, 2025, plus 1.84%, payable quarterly on the 15 th of February, May, August and November of each year during the five-year period commencing on August 15, 2025 and ending on (and inclusive of) August 14, 2030; and 4.542% on the Series B Shares for the three-month period commencing on August 15, 2025 and ending on (and inclusive of) November 14, 2025 ($0.2862 per Series B Share for the quarter), being equal to the sum of the three-month Government of Canada treasury bill yield rate as at July 16, 2025, plus 1.84% (calculated on the basis of the actual number of days elapsed during the quarter divided by 365), payable on the 15 th of November 2025. The quarterly floating dividend rate will be reset every quarter. Article content Subject to certain conditions set out in the prospectus supplement of the Company dated May 26, 2010, to the short form base shelf prospectus of the Company dated May 19, 2010 (collectively, the 'Prospectus'), on August 15, 2025 (the 'Conversion Date'): Article content (a) the holders of Series A Shares have the right, at their option: Article content to retain any or all of their Series B Shares and continue to receive a floating rate quarterly dividend; or to convert any or all of their Series B Shares, on a one-for-one basis, into Series A Shares and receive a fixed rate quarterly dividend. Article content The conversion of Series A Shares is subject to the conditions that: (i) if the Company determines, after having taken into account all shares tendered for conversion by holders of Series A Shares that there would remain outstanding on the Conversion Date less than 1,000,000 Series A Shares, all remaining Series A Shares will automatically be converted into Series B Shares on a one-for-one basis on the Conversion Date, and (ii) alternatively, if the Company determines that, after conversion, there would remain outstanding on the Conversion Date less than 1,000,000 Series B Shares, then no Series A Shares will be converted into Series B Shares. Article content The conversion of Series B Shares is subject to the conditions that: (i) if the Company determines, after having taken into account all shares tendered for conversion by holders of Series B Shares that there would remain outstanding on the Conversion Date less than 1,000,000 Series B Shares, all remaining Series B Shares will automatically be converted into Series A Shares on a one-for-one basis on the Conversion Date, and (ii) alternatively, if the Company determines that, after conversion, there would remain outstanding on the Conversion Date less than 1,000,000 Series A Shares, then no Series B Shares will be converted into Series A Shares. Article content In either case, the Company will give written notice to that effect to the holders of Series A Shares and the holders of Series B Shares at least seven days prior to the Conversion Date, subject to the terms set out in the Prospectus. Article content Holders of Series A Shares or Series B Shares who wish to exercise their conversion right should communicate with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from July 16, 2025, until 5:00 p.m. (EDT) on July 31, 2025. Notices received after this deadline will not be valid. As such, it is recommended that this be done well in advance of the deadline in order to provide their broker or other nominee with adequate time to complete the necessary steps. Article content Holders of Series A Shares and Series B Shares will have the opportunity to convert their shares again on August 15, 2030, and every five years thereafter as long as the shares remain outstanding. For more information on the terms of, and risks associated with, an investment in Series A Shares and Series B Shares, please see the Company's Prospectus, which is available on SEDAR+ at Article content Forward Looking Information Article content This news release contains forward-looking information within the meaning of applicable securities laws, including without limitation, statements about Series A Shares and Series B Shares. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera management's current beliefs and are based on information currently available to Emera management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera's assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera's securities regulatory filings, including under the heading 'Enterprise Risk and Risk Management' in Emera's annual Management's Discussion and Analysis, and under the heading 'Principal Financial Risks and Uncertainties' in the notes to Emera's annual and interim financial statements, which can be found on SEDAR+ at or on EDGAR at Article content Emera (TSX/NYSE: EMA) is a leading North American provider of energy services headquartered in Halifax, Nova Scotia, with investments in regulated electric and natural gas utilities, and related businesses and assets. The Emera family of companies delivers safe, reliable energy to approximately 2.6 million customers in Canada, the United States and the Caribbean. Our team of 7,600 employees is committed to our purpose of energizing modern life and delivering a cleaner energy future for all. Emera's common and preferred shares are listed and trade on the Toronto Stock Exchange and its common shares are listed and trade on the New York Stock Exchange. Additional information can be accessed at on SEDAR+ at and on EDGAR at Article content Article content Article content Article content Article content Contacts Article content Emera Inc. Article content Article content Investor Relations Article content 902-233-2674 Article content Article content Article content Article content
Yahoo
6 hours ago
- Business
- Yahoo
Stifel Maintains Bullish Outlook on Realty Income (O) Amid Solid AFFO and Growth Prospects
Realty Income Corporation (NYSE:O) is one of Goldman Sachs' top REIT stock picks. On July 15, Stifel reaffirmed its Buy rating on Realty Income (NYSE:O), keeping the price target steady at $68. A real estate investor inspecting a property, illustrating the bank's portfolio of mortgages and real estate investments. Stifel maintained its 2027 AFFO estimate at $4.52 for Realty Income. The company previously guided 2025 AFFO between $4.22 and $4.28, reflecting modest growth, and is targeting $4.0 billion in acquisitions. Stifel expects this guidance to be revised upward following Realty Income's second-quarter earnings release. Realty Income Corporation (NYSE:O) is a real estate investment trust specializing in single-tenant commercial properties. By year-end 2024, its portfolio spanned 15,621 locations across the United States, United Kingdom, and multiple European Union nations. The $53 billion retail REIT continues to attract investor attention with its reliable 5.5% dividend yield and a 32-year track record of uninterrupted payouts. While we acknowledge the potential of O as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Goldman Sachs Healthcare Stocks: Top 10 Stock Picks and 11 Best Green Energy Penny Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
