Fri, Apr 18, 10:01 AM (35 days ago)
**Kinder Morgan, Inc. (KMI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $4.241 billion, up 10% from $3.842 billion in Q1 2024. - **Net Income:** $743 million, down 4% from $773 million in Q1 2024. - **Operating Income:** $1.145 billion, down 6% from $1.223 billion in Q1 2024. - **Earnings per Share (EPS):** $0.32, down 3% from $0.33 in Q1 2024. - **Cash Flow from Operations:** $1.162 billion, down 2% from $1.189 billion in Q1 2024. **Profit Margins:** - **Operating Margin:** Approximately 27%, down from 32% in Q1 2024. - **Net Margin:** Approximately 17%, down from 20% in Q1 2024. **Cash Flow:** - **Net Increase in Cash:** $81 million, up from $47 million in Q1 2024. - **Capital Expenditures:** $766 million, up from $619 million in Q1 2024. **Earnings Changes:** - **Revenue Increase:** Driven by higher natural gas sales and other sales, partially offset by lower product sales. - **Operating Costs:** Increased by 18%, primarily due to higher costs of sales for natural gas and operations and maintenance expenses. - **Interest Expense:** Decreased by 4%, primarily due to lower interest rates associated with interest rate swap agreements. **Quarterly Performance Discussion:** - **Segment Performance:** Natural Gas Pipelines and CO2 segments showed positive trends, while Products Pipelines segment faced challenges. - **Acquisitions:** Completed the acquisition of Outrigger Energy for $648 million, adding a natural gas gathering and processing system. - **Dividends:** Declared a dividend of $0.2925 per share, a 2% increase from Q1 2024. **Trends and Uncertainties:** - **Market Conditions:** Volatility in commodity prices and volumes impacted revenue and costs. - **Regulatory Environment:** Ongoing legal and environmental matters, including challenges to the "Good Neighbor Plan." - **Capital Investments:** Planned $3.0 billion in expansion projects and acquisitions for 2025. **Future Operations Impact:** - **Growth Initiatives:** Focus on expansion projects and strategic acquisitions to drive future growth. - **Risk Management:** Continued use of derivative contracts to hedge against commodity price risks. - **Financial Strategy:** Maintain strong liquidity and manage debt levels to support growth and dividend payments. **Ticker:** KMI