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October 25, 2025 • 4 min read
Kinder Morgan, Inc. (KMI), one of North America's largest energy infrastructure companies, recently released its financial results for the third quarter of 2025. We're diving into the numbers from its latest 10-Q filing to see how the company is performing and what's driving its results. The big picture shows a company with rising revenues but steady profits, pointing to the impact of higher operational costs.
For the third quarter ended September 30, 2025, Kinder Morgan reported total revenues of $4.1 billion, a solid 12% increase from the $3.7 billion reported in the same quarter last year. However, this top-line growth didn't translate into higher profits. Net income attributable to KMI was essentially flat at $628 million, or $0.28 per share, compared to $625 million, or $0.28 per share, in Q3 2024.
So, where did the extra revenue go? The main culprit was a significant jump in the "Costs of sales," which climbed 36% to $1.4 billion. This highlights the cost pressures impacting the industry, where higher commodity sales don't always mean higher profits.
The following flow diagram provides a visual breakdown of the company's quarterly revenues and expenses, illustrating how the money flows from the top line to the bottom line.
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A company as large as Kinder Morgan is best understood by looking at its individual business segments. Here, the story gets more nuanced, with clear winners and one segment facing challenges. The company often uses a metric called Segment EBDA (Earnings Before Depreciation and Amortization), which helps measure the operational profitability of each division.
Natural Gas Pipelines: This is KMI's largest and most important segment, and it delivered strong results. Segment EBDA grew by $106 million to $1.4 billion for the quarter. This growth was fueled by higher transportation volumes and contributions from the Outrigger Energy acquisition completed in February 2025. With natural gas playing a critical role in the energy landscape, the strong performance of this segment is a key pillar of KMI's stability.
Terminals: The Terminals segment, which handles and stores various commodities, also saw positive results. Its EBDA increased slightly to $274 million. A standout performer within this division was the Jones Act tankers business, which saw its earnings jump 25% due to higher charter rates.
Products Pipelines: This segment, responsible for transporting refined petroleum products like gasoline and diesel, reported an EBDA of $288 million, up from $277 million a year ago. The company credited lower costs in its processing operations for the improved performance.
CO2: The CO2 segment, which produces and transports carbon dioxide for use in enhanced oil recovery projects, was the one weak spot. Its EBDA fell by $33 million to $135 million. The decline was driven by lower oil production volumes and slightly weaker realized prices, underscoring the volatility inherent in commodity-producing businesses.
Kinder Morgan continues to prioritize returning value to its shareholders. The company declared a quarterly dividend of $0.2925 per share, a 2% increase over the third quarter of 2024. This reflects management's confidence in its cash flow stability.
The company is also investing heavily in its future. In the first nine months of 2025, KMI spent $2.2 billion on capital expenditures, including $1.5 billion on expansion projects designed to grow its asset base and capacity for the long term.
Kinder Morgan's third-quarter results paint a picture of a resilient energy infrastructure giant successfully navigating a complex market. The powerful performance of its Natural Gas Pipelines segment is driving the company forward, demonstrating the enduring demand for this critical fuel. While rising costs are keeping a lid on profit growth and the CO2 segment faces headwinds, the company's vast and diversified asset base, coupled with a commitment to shareholder returns and strategic growth investments, positions it as a central player in the North American energy ecosystem.
Last updated: October 25, 2025