Kinder Morgan Inc. (KMI) delivered a strong second-quarter performance, reporting a 24% increase in net profit as natural gas demand continues to drive growth across its pipeline and infrastructure business.
The company posted $4.04 billion in revenue for Q2, representing a 13.2% year-over-year increase, and beating MarketBeat’s consensus by 550 basis points. The gains were largely fueled by continued strength in the natural gas and LNG export segments, which remain central to Kinder Morgan’s long-term strategy.
“We are seeing historic levels of natural gas demand, and the outlook for our infrastructure remains strong,” said Executive Chairman Richard Kinder. “We’re also actively pursuing over 5 Bcfd of new opportunities in the natural gas power generation sector.”
Strong Operational Performance and Growing Project Pipeline
Kinder Morgan currently transports approximately 8 billion cubic feet per day (bcfd) of natural gas to LNG export terminals under long-term contracts and expects this to rise to 12 bcfd by 2028. In Q2, the company moved 44,585 BBtu/d, up from 43,123 BBtu/d in the prior year.
Its total delivery volumes, which include refined fuels such as diesel and jet fuel, also rose over 2% to 2.21 million barrels per day.
Net income for the quarter was $715 million, or $0.32 per share, compared to $575 million or $0.26 per share a year earlier. While revenue exceeded expectations, adjusted EPS matched forecasts at $0.28, as margins on natural gas realigned with long-term trends amid the startup of new assets.
The company’s project backlog grew to $9.3 billion, a 6% net increase, with new developments exceeding completed ones by nearly 2-to-1 in dollar terms. Notably, about 50% of this backlog is tied to natural gas power generation infrastructure.
Improved Full-Year Guidance and Analyst Sentiment
Kinder Morgan raised its full-year outlook, anticipating net income growth to exceed its prior 8% forecast, supported by its expanding backlog and recent acquisitions. Management indicated that even excluding organic growth, contributions from the latest acquisition alone are expected to lift results above guidance.
Investor sentiment remains positive. As of mid-July, analysts maintain a Moderate Buy rating on KMI, with the consensus price target implying a 10% upside. The high-end target sits at $38, offering a potential 38% gain in addition to the company’s 4.2% dividend yield.
Institutional ownership also supports the stock, with institutions holding more than 60% of shares and ramping up buying activity in 2025. For every dollar of stock sold, nearly $2 worth has been purchased through mid-year, marking a multi-year high in institutional inflows.
Kinder Morgan's Strategic Position in the U.S. Gas Market
Kinder Morgan remains a dominant force in U.S. energy infrastructure, transporting approximately 40% of the nation’s natural gas supply. With growing demand from LNG exports and domestic power generation, the company is positioned to play a critical role in future gas flows.
In total, the company owns 41,630 miles of transmission pipelines, of which 40,613 miles are operational and 1,017 miles are under development. Its midstream footprint also includes 27 gas storage facilities and a growing network of LNG terminals, supporting both domestic and global energy needs.
About Kinder Morgan
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America, operating pipelines and terminals that transport natural gas, refined petroleum products, crude oil, and carbon dioxide. With a focus on long-term contracts and stable cash flows, Kinder Morgan continues to invest in infrastructure that supports the evolving energy landscape.
