Kinder Morgan announces 2025 financial expectations

$1.27 Adjusted EPS (up 8% from 2024); $8.3 billion Adjusted EBITDA; 3.8x leverage at year-end 2025; and $1.17 dividend per share

Kinder Morgan, Inc. (NYSE: KMI) today announced its preliminary 2025 financial projections. “We expect 4% growth from 2024 in Adjusted EBITDA and 8% growth in Adjusted EPS due to growth projects in all our business segments, but most prominently in Natural Gas Pipelines and Energy Transition Ventures,” said Kim Dang, KMI Chief Executive Officer.

“We are projecting an annualized dividend of $1.17 in 2025, constituting the 8 ^th year in a row in which we have increased our dividend. Our end-of-year 2025 Net Debt-to-Adjusted EBITDA ratio is forecast to be 3.8 times, which is in the lower part of our 3.5x-4.5x leverage target range and provides good capacity for additional opportunistic investment,” Dang concluded.

“We anticipate generating Adjusted EPS of $1.27, up 8% compared to our year-end 2024 forecast of $1.17 per share, and Adjusted EBITDA of $8.3 billion, up 4% compared to the 2024 forecast of $8 billion,” said KMI President Tom Martin.

“We expect to continue benefiting from strong natural gas market fundamentals driving growth on our existing natural gas transportation and storage assets, as well as creating expansion opportunities. Overall, our base business is relatively flat with expansion projects in our Natural Gas Pipelines segment and Energy Transition Ventures group as the primary growth drivers,” Martin concluded.

Below is a summary of KMI’s expectations for 2025:

• Generate $1.27 of Adjusted EPS, up 8% versus our current 2024 forecast of $1.17.
• Generate $8.3 billion of Adjusted EBITDA, up 4% from the 2024 forecast of $8 billion.
• Invest $2.3 billion in discretionary capital expenditures, including expansion projects and contributions to joint ventures, funded out of internally generated cash flow.
• Return additional value to shareholders for 2025 through an anticipated declared $1.17 per share dividend (annualized).
• End 2025 with a Net Debt-to-Adjusted EBITDA ratio of 3.8 times.

This press release includes budgeted Adjusted EPS, Adjusted EBITDA and Net Debt, 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 ” below. Historically, KMI has disclosed budgeted distributable cash flow, or DCF, in the aggregate and per share. KMI has excluded budgeted DCF from this press release due to declining investor interest in DCF as a primary performance measure. KMI expects to continue to disclose DCF in 2025 as supplemental information in some investor materials for comparability purposes.

KMI’s expectations assume average annual prices for West Texas Intermediate (WTI) crude oil and Henry Hub natural gas of $68 per barrel and $3.00 per MMBtu, respectively, consistent with forward pricing during the budget process. The vast majority of cash generated by KMI is fee-based and therefore is not directly exposed to commodity prices. For 2025, the company estimates that every $1 per barrel change in the average WTI crude oil price impacts Adjusted EBITDA by approximately $7 million, and each $0.10 per MMBtu change in the price of natural gas impacts Adjusted EBITDA by approximately $6 million.

The KMI board of directors has preliminarily reviewed the 2025 budget and will take formal action on it at the January board meeting, expected to coincide with the issuance of fourth quarter 2024 earnings on January 22, 2025. The 2025 budget will be the standard by which KMI measures its performance next year and will be a factor in determining employee compensation. Kinder Morgan has posted a presentation that includes a brief overview of the 2025 budget to the Investor Relations website and expects to publish a detailed 2025 budget and outlook presentation on the company’s website in early February.

Table 2
Kinder Morgan, Inc. and Subsidiaries
Reconciliation of Projected Net Income Attributable to Kinder Morgan, Inc. to Projected Adjusted Net Income Attributable to Common Stock
(In billions, unaudited)
	2024 Forecast				2025 Budget
Net income attributable to Kinder Morgan, Inc. (GAAP)	$	2.7			$	2.8
Total Certain Items (1)		(0.1	)			—
Net income allocated to participating securities (1)(5)		—				—
Other (1)(6)		—				—
Adjusted Net Income Attributable to Common Stock (7)	$	2.6			$	2.8

Notes
(1)	Aggregate adjustments are currently estimated to be less than $100 million.
(2)	Amounts are adjusted for Certain Items.
(3)	Includes amortization of basis differences related to our JVs.
(4)	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.
(5)	Net income allocated to common stock and participating securities is based on the amount of dividends paid in the current period plus an allocation of the undistributed earnings or excess distributions over earnings to the extent that each security participates in earnings or excess distributions over earnings, as applicable.
(6)	Adjusted net income in excess of distributions for participating securities.
(7)	Adjusted Net Income Attributable to Common Stock is used to calculate Adjusted EPS.