Kinder Morgan's Revenue Jumps 11.8%, Net Income Up 6% on Strong Commodity Sales

TL;DR

**KMI is pumping out solid numbers, but watch that debt pile as they invest heavily in growth.**

AI Summary

KINDER MORGAN, INC. (KMI) reported a robust financial performance for the nine months ended September 30, 2025, with total revenues increasing to $12,429 million, up from $11,113 million in the prior year, representing an 11.8% increase. This growth was primarily driven by a significant rise in commodity sales, which climbed to $5,262 million from $4,307 million, a 22.2% jump. Net income attributable to Kinder Morgan, Inc. also saw a healthy increase, reaching $2,060 million for the nine-month period, compared to $1,946 million in 2024, an increase of 5.96%. Basic and diluted earnings per share rose to $0.92 from $0.87 year-over-year. The company's operating income for the nine months ended September 30, 2025, was $3,360 million, a 2.56% increase from $3,276 million in the same period of 2024. Cash provided by operating activities increased to $4,225 million from $4,125 million, indicating strong operational cash generation. However, cash used in investing activities significantly increased to $2,702 million from $1,858 million, largely due to higher capital expenditures of $2,206 million and acquisitions of assets totaling $648 million. Long-term debt also increased to $31,303 million as of September 30, 2025, from $29,779 million at December 31, 2024.

Why It Matters

KMI's strong revenue and net income growth, particularly from commodity sales, signals robust demand for its energy infrastructure services, which is positive for investors. The increased capital expenditures and asset acquisitions suggest strategic investments in expanding and modernizing its extensive pipeline and terminal network, potentially enhancing long-term competitive positioning against rivals like Enterprise Products Partners and Williams Companies. For employees, this growth could mean job stability and opportunities in a dynamic energy sector. Customers benefit from KMI's expanded capacity and diversified services, ensuring reliable energy transport. The broader market sees KMI's performance as an indicator of the health and direction of North American energy demand and infrastructure development.

Risk Assessment

Risk Level: medium — The company's long-term debt increased to $31,303 million as of September 30, 2025, from $29,779 million at December 31, 2024, representing a 5.1% increase. This rise in debt, coupled with a significant increase in cash used in investing activities to $2,702 million, indicates a higher leverage profile and substantial capital deployment, which could expose the company to interest rate fluctuations and financing risks.

Analyst Insight

Investors should hold KMI, recognizing its strong operational cash flow and strategic investments in energy transition ventures and core infrastructure. Monitor the company's debt-to-equity ratio and interest coverage as long-term debt has increased, but the robust revenue growth and consistent dividend payments suggest a stable outlook.

Financial Highlights

revenue

$12,429M

operating Margin

27.04%

total Debt

$31,303M

net Income

$2,060M

eps

$0.92

cash Position

$71M

revenue Growth

+11.8%

Revenue Breakdown

Key Numbers

• $12.43B — Total Revenues (Increased from $11.11B in 2024, an 11.8% rise, driven by commodity sales.)
• $2.06B — Net Income Attributable to KMI (Increased from $1.95B in 2024, a 5.96% increase, showing strong profitability.)
• $0.92 — Basic and Diluted EPS (Increased from $0.87 in 2024, reflecting improved per-share earnings.)
• $4.23B — Net Cash Provided by Operating Activities (Increased from $4.13B in 2024, indicating robust operational cash generation.)
• $2.70B — Net Cash Used in Investing Activities (Increased significantly from $1.86B in 2024, due to higher capital expenditures and acquisitions.)
• $31.30B — Long-term Debt (Increased from $29.78B at December 31, 2024, reflecting increased leverage.)
• $648M — Acquisition of Assets (A substantial increase from $58M in 2024, indicating strategic growth initiatives.)
• $2.21B — Capital Expenditures (Increased from $1.86B in 2024, showing continued investment in infrastructure.)
• 22.2% — Commodity Sales Growth (Commodity sales rose to $5,262 million from $4,307 million, a key driver of revenue growth.)
• $1,950M — Dividends Paid (Increased from $1,915M in 2024, demonstrating commitment to shareholder returns.)

Key Players & Entities

• KINDER MORGAN, INC. (company) — registrant
• New York Stock Exchange (regulator) — exchange where KMI is registered
• U.S. Securities and Exchange Commission (regulator) — regulatory body
• FASB (regulator) — accounting standards body
• $12,429 million (dollar_amount) — total revenues for nine months ended September 30, 2025
• $2,060 million (dollar_amount) — net income attributable to Kinder Morgan, Inc. for nine months ended September 30, 2025
• $0.92 (dollar_amount) — basic and diluted earnings per share for nine months ended September 30, 2025
• $31,303 million (dollar_amount) — long-term debt as of September 30, 2025
• $2,702 million (dollar_amount) — net cash used in investing activities for nine months ended September 30, 2025
• $648 million (dollar_amount) — acquisition of assets for nine months ended September 30, 2025

FAQ

Risk Factors

• Environmental Regulations [high — regulatory]: The company operates under stringent environmental regulations, including CERCLA, which can lead to significant liabilities and remediation costs. Compliance with EPA standards and potential future regulations pose ongoing risks.
• Commodity Price Volatility [medium — market]: Fluctuations in commodity prices (e.g., WTI, natural gas) directly impact the profitability of commodity sales and the demand for transportation services. The company's revenue is sensitive to these market dynamics.
• Pipeline Integrity and Safety [high — operational]: Operating 79,000 miles of pipelines requires continuous focus on integrity management and safety to prevent disruptions, leaks, or accidents. Operational failures can result in significant financial and reputational damage.
• Interest Rate Risk [medium — financial]: With $31.3 billion in long-term debt, the company is exposed to interest rate fluctuations. Rising interest rates increase the cost of servicing debt, impacting net income and cash flow available for other purposes.
• Litigation and Legal Proceedings [medium — legal]: The company is involved in various legal proceedings, including those related to environmental matters and commercial disputes. Adverse outcomes could result in substantial financial penalties or operational restrictions.
• Capital Expenditure Execution [medium — operational]: Significant capital expenditures of $2.21 billion are planned, including for expansion projects. Delays or cost overruns in these projects could impact future growth and returns.
• Energy Transition and Demand Shifts [medium — market]: The long-term demand for the company's core assets (natural gas, refined products) could be affected by the global energy transition and shifts towards renewable energy sources. Adapting to these changes is crucial.
• Acquisition Integration Risk [low — financial]: The acquisition of assets for $648 million introduces integration risks. Successfully realizing the expected synergies and operational benefits from these acquisitions is critical.

Industry Context

Kinder Morgan operates as a major energy infrastructure company in North America, managing extensive pipeline networks and terminals. The industry is characterized by significant capital intensity, regulatory oversight, and increasing focus on energy transition initiatives. Competition exists from other midstream operators and evolving energy sources.

Regulatory Implications

The company faces substantial regulatory scrutiny from bodies like the EPA, particularly concerning environmental compliance and pipeline safety. Changes in environmental laws or stricter enforcement can lead to increased compliance costs and potential liabilities, impacting operations and financial performance.

What Investors Should Do

1. Monitor capital expenditure deployment and acquisition integration.
2. Assess the impact of commodity price volatility on earnings.
3. Evaluate the company's debt management strategy.
4. Analyze the company's adaptation to the energy transition.

Key Dates

• 2025-09-30: Nine Months Ended — Reporting period for the 10-Q, showing increased revenues, net income, and significant investment in capital expenditures and acquisitions.
• 2024-12-31: Year-End — Prior period balance sheet date, used as a comparison for current debt levels ($29,779M).
• 2024-09-30: Nine Months Ended — Prior year comparison period for revenues, net income, and cash flows, highlighting year-over-year performance improvements.

Glossary

Bcf

Billion cubic feet, a unit of volume for natural gas. (Used to quantify natural gas storage capacity and RNG generation.)

CERCLA

Comprehensive Environmental Response, Compensation and Liability Act, a U.S. federal law that addresses the cleanup of hazardous waste sites. (Indicates potential environmental liabilities and regulatory oversight.)

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting. (The basis for preparing the company's consolidated financial statements.)

NGL

Natural gas liquids, such as ethane, propane, and butane, extracted from natural gas. (Relevant to the company's commodity sales and pipeline transportation business.)

ROU

Right-of-Use, typically refers to assets recognized under lease accounting standards. (May impact the balance sheet and financial disclosures related to leases.)

RNG

Renewable natural gas, produced from organic waste sources. (Highlights the company's involvement in the growing energy transition sector.)

WTI

West Texas Intermediate, a benchmark grade of crude oil. (Its price is a key market indicator affecting the energy sector and the company's commodity sales.)

DD&A

Depreciation, depletion and amortization, non-cash expenses related to the consumption of assets. (A significant operating expense impacting profitability and taxable income.)

Year-Over-Year Comparison

Kinder Morgan has demonstrated strong year-over-year performance, with total revenues up 11.8% to $12.43B, largely driven by a 22.2% surge in commodity sales. Net income attributable to KMI also saw a healthy increase of 5.96% to $2.06B, with EPS rising to $0.92. While operating cash flow remained robust, investing activities significantly increased due to higher capital expenditures and substantial asset acquisitions, leading to a rise in long-term debt to $31.30B.

Filing Documents

• kmi-20250930.htm (10-Q) — 2545KB
• kmi-09302025ex101.htm (EX-10.1) — 375KB
• kmi-09302025ex221.htm (EX-22.1) — 1KB
• kmi-09302025ex311.htm (EX-31.1) — 11KB
• kmi-09302025ex312.htm (EX-31.2) — 11KB
• kmi-09302025ex321.htm (EX-32.1) — 5KB
• kmi-09302025ex322.htm (EX-32.2) — 5KB
• kmi-20250930_g1.gif (GRAPHIC) — 6KB
• 0001506307-25-000065.txt ( ) — 11876KB
• kmi-20250930.xsd (EX-101.SCH) — 43KB
• kmi-20250930_cal.xml (EX-101.CAL) — 75KB
• kmi-20250930_def.xml (EX-101.DEF) — 363KB
• kmi-20250930_lab.xml (EX-101.LAB) — 652KB
• kmi-20250930_pre.xml (EX-101.PRE) — 501KB
• kmi-20250930_htm.xml (XML) — 2453KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Statements of Income - Three and Nine Months Ended September 3 0 , 202 5 and 202 4 4 Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 3 0 , 202 5 and 202 4 5 Consolidated Balance Sheets - as of September 30 , 202 5 and December 31, 202 4 6 Consolidated Statements of Cash Flows - Nine Months Ended September 3 0 , 202 5 and 202 4 7 Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended September 3 0 , 202 5 and 202 4 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Note 1 . General 10 Note 2. Acquisition s and Divestiture 11 Note 3. Debt 12 Note 4. Stockholders ' Equity 13 Note 5. Risk Management 14 Note 6. Revenue Recognition 19 Note 7. Reportable Segments 22 Note 8. Income Taxes 27 Note 9. Litigation and Environmental 27 Note 10. Recent Accounting Pronouncements 31 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations General and Basis of Presentation 32 Results of Operations 32 Overview 32 Consolidated Earnings Results 35 Non-GAAP Financial Measures 38 Segment Earnings Results 40 Liquidity and Capital Resources 48 Summarized Combined Financial Information for Guarantee of Securities of Subsidiaries 52 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 4.

Controls and Procedures

Controls and Procedures 53

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 53 Item 1A.

Risk Factors

Risk Factors 53 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54 Signature 55 1 KINDER MORGAN, INC. AND SUBSIDIARIES GLOSSARY Company Abbreviations KMBT = Kinder Morgan Bulk Terminals, Inc. KMLT = Kinder Morgan Liquid Terminals, LLC KMI = Kinder Morgan, Inc. and its majority-owned and/or controlled subsidiaries SNG = Southern Natural Gas Company, L.L.C. TGP = Tennessee Gas Pipeline Company, L.L.C. Unless the context otherwise requires, references to "we," "us," "our," or "the Company" are intended to mean Kinder Morgan, Inc. and its majority-owned and/or controlled subsidiaries. Common Industry and Other Terms /d = per day LLC = limited liability company Bbl = barrels MBbl = thousand barrels BBtu = billion British Thermal Units MMBbl = million barrels Bcf = billion cubic feet MMtons = million tons CERCLA = Comprehensive Environmental Response, Compensation and Liability Act NGL = natural gas liquids NYMEX = New York Mercantile Exchange CO 2 = carbon dioxide or our CO 2 business segment OTC = over-the-counter DD&A = depreciation, depletion and amortization RIN = Renewable Identification Number EPA = U.S. Environmental Protection Agency RNG = Renewable natural gas FASB = Financial Accounting Standards Board ROU = Right-of-Use GAAP = U.S. Generally Accepted Accounting Principles U.S. = United States of America IT = Information Technology WTI = West Texas Intermediate 2 Information Regarding Forward-Looking Statements This report includes forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. They use words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "outlook," "continue," "estimate," "expect," "may," "will," "shall,"

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. KINDER MORGAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts, unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues Services $ 2,340 $ 2,215 $ 7,026 $ 6,625 Commodity sales 1,758 1,441 5,262 4,307 Other 48 43 141 181 Total Revenues 4,146 3,699 12,429 11,113 Operating Costs, Expenses and Other Costs of sales (exclusive of items shown separately below) 1,395 1,024 4,082 3,098 Operations and maintenance 786 790 2,270 2,211 Depreciation, depletion and amortization 609 587 1,835 1,758 General and administrative 183 176 558 530 Taxes, other than income taxes 111 107 334 327 Other income, net ( 1 ) — ( 10 ) ( 87 ) Total Operating Costs, Expenses and Other 3,083 2,684 9,069 7,837 Operating Income 1,063 1,015 3,360 3,276 Other Income (Expense) Earnings from equity investments 221 199 647 625 Interest, net ( 456 ) ( 466 ) ( 1,359 ) ( 1,402 ) Other, net 11 16 39 17 Total Other Expense ( 224 ) ( 251 ) ( 673 ) ( 760 ) Income Before Income Taxes 839 764 2,687 2,516 Income Tax Expense ( 185 ) ( 113 ) ( 548 ) ( 490 ) Net Income 654 651 2,139 2,026 Net Income Attributable to Noncontrolling Interests ( 26 ) ( 26 ) ( 79 ) ( 80 ) Net Income Attributable to Kinder Morgan, Inc. $ 628 $ 625 $ 2,060 $ 1,946 Class P Common Stock Basic and Diluted Earnings Per Share $ 0.28 $ 0.28 $ 0.92 $ 0.87 Basic and Diluted Weighted Average Shares Outstanding 2,224 2,221 2,223 2,220 The accompanying notes are an integral part of these consolidated financial statements. 4 KINDER MORGAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions, unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 654 $ 651 $ 2,139 $ 2,026 Other comprehensive income, net of tax Net unrealized gain from derivative instruments (net of taxes of $( 7 ), $(

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. General Organization We are one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, over 700 Bcf of working natural gas storage capacity, and have RNG generation capacity of approximately 6.9 Bcf per year of gross production. 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. Basis of Presentation General Our accompanying unaudited consolidated financial statements have been prepared under the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These rules and regulations conform to the accounting principles contained in the FASB's Accounting Standards Codification (ASC), the single source of GAAP. In compliance with such rules and regulations, all significant intercompany items have been eliminated in consolidation. In our opinion, all adjustments, which are of a normal and recurring nature, considered necessary for a fair statement of our financial position and operating results for the interim periods have been included in the accompanying consolidated financial statements, and certain amounts from prior periods have been reclassified to conform to the current presentation. Interim results are not necessarily indicative of results for a full year; accordingly, you should read these consolidated financial statements in conjunction with our consolidated financial statements and related notes included in our 2024 Form 10-K. The accompanying unaudited consolidated financial statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. We eval

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