Kinder Morgan (KMI) Financials

Kinder Morgan (NYSE: KMI) has demonstrated steady financial performance over the past four years through its consistent revenue growth, solid operating income, and strong cash flows. Here is an analysis based on the key financial statements from Q2 2022 through Q2 2025.

• Steady Revenue Growth: Operating revenue grew from approximately $3.5 billion in Q2 2022 to over $4.0 billion by Q2 2025, indicating gradual top-line growth.
• Consistent Profitability: Net income has shown a steady increase, with consolidated net income rising from roughly $610 million in Q2 2022 to $742 million in Q2 2025.
• Stable Earnings per Share (EPS): Diluted EPS remained stable around $0.26 to $0.33 per quarter over the period, reflecting consistent earnings generation relative to shares outstanding.
• Strong Operating Cash Flow: Net cash from operating activities consistently exceeds $1 billion quarterly, reaching $1.65 billion in Q2 2025, underscoring solid cash generation capacity to support operations and investments.
• Significant Investment in CapEx: Kinder Morgan invests heavily in property, plant, and equipment, with quarterly purchases ranging from $477 million to $766 million, supporting infrastructure growth and maintenance.
• Managed Dividend Payouts: Dividends paid to common shareholders have steadily increased, reaching about $0.2925 per share in Q2 2025, signaling a commitment to returning capital to shareholders.
• Debt Management: Long-term debt remains high at around $30 billion consistently; however, Kinder Morgan continues to actively manage its debt, with significant repayments and issuances balancing out over time.
• Equity Levels: Total common equity gradually increased from about $30.3 billion in late 2022 to over $30.7 billion in mid-2025, indicating a stable equity base amidst ongoing earnings retention.
• Cash and Restricted Cash Fluctuations: Cash and equivalents show variability, with amounts sometimes around $80 million but previously much higher (up to $745 million), which could reflect liquidity management or seasonality.
• Net Cash from Financing Activities Volatility: Financing activities reflect large swings, including debt repayments in billions but also issuances, along with steady dividend payouts, which could cause cash flow volatility and affect leverage ratios.

Overall, Kinder Morgan exhibits a stable financial condition with growing revenues and earnings, backed by strong cash flow from operations and disciplined capital expenditures. The company’s high leverage is actively managed, supported by consistent profitability and cash generation. Retail investors should note the stable dividend growth and steady EPS as positive signs, while keeping an eye on debt levels and cash flow from financing activities for risks.