Kinder Morgan Inc (NYSE:KMI) stock rose 2.25% (As on April 17, 11:27:19 AM UTC-4, Source: Google Finance) after the company reported mixed first quarter results, with earnings slightly missing estimates but revenue beating expectations. The energy infrastructure company also reaffirmed its full-year 2025 guidance. The company’s natural gas pipelines segment saw improved financial performance compared to Q1 2024, driven by higher contributions from its Texas Intrastate system and Tennessee Gas Pipeline. Natural gas transport volumes increased 3% year-over-year, primarily due to higher LNG and power plant deliveries. Kinder Morgan ended Q1 with a net debt-to-adjusted EBITDA ratio of 4.1 times. The company aims to reduce this ratio to 3.8 times by the end of 2025, excluding contributions from its recent Outrigger Energy II acquisition. Adjusted net income attributable to KMI of $766 million, 1% higher than the first quarter of 2024. Adjusted EBITDA of $2,157 million, up 1% versus the first quarter of 2024. The company generated cash flow from operations of $1.2 billion and $0.4 billion in free cash flow (FCF) after capital expenditures. At the end of the first quarter of 2025, the backlog stood at $8.8 billion, net of approximately $225 million in projects placed in service, a nearly 8% increase compared to $8.1 billion at the end of the fourth quarter of 2024. Natural gas projects account for approximately 91% of the backlog.

Moreover, the company’s analysis indicates potential demand for U.S. natural gas is projected to grow between 20-28 Bcf/d by the end of the decade. According to Wood Mackenzie, demand for LNG feedgas is projected to more than double over the same period. We currently have long-term contracts to move approximately 7 Bcf/d to LNG facilities and, upon completion of projects under construction, that amount is expected to grow to approximately 11 Bcf/d by the end of 2027. The company is also pursuing a substantial amount of additional LNG feedgas opportunities.

KMI in the first quarter of FY25 has reported the adjusted earnings per share of 34 cents, missing the analysts’ estimates for the adjusted earnings per share of 35 cents. The company had reported the adjusted revenue of $4.24 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $4.08 billion.

For the full year 2025, Kinder Morgan reiterated its outlook for adjusted earnings per share of $1.27, slightly below the consensus estimate of $1.28. The company expects to declare dividends of $1.17 per share in 2025, representing a 2% increase from 2024 levels. Adjusted EBITDA is projected to reach $8.3 billion, up 4% compared to 2024.