Kinder Morgan Inc.

10/24/2025 | Press release | Distributed by Public on 10/24/2025 14:09

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
General and Basis of Presentation
The following discussion and analysis should be read in conjunction with our accompanying interim consolidated financial statements and related notes included elsewhere in this report, and in conjunction with (i) our consolidated financial statements and related notes in our 2024 Form 10-K; (ii) our management's discussion and analysis of financial condition, and results of operations included in our 2024 Form 10-K; (iii) "Information Regarding Forward-Looking Statements" at the beginning of this report, and in our 2024 Form 10-K; and (iv) "Risk Factors" in this report, in Part II, Item 1A in our March 31, 2025 Form 10-Q, and in Part I, Item 1 in our 2024 Form 10-K.
Acquisition
The following acquisition was made during the 2025 period. See Note 2. "Acquisitions and Divestiture" to our consolidated financial statements for further information on this transaction.
Event Description Business Segment
Outrigger Energy acquisition
$648 million
(February 2025)
Natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC which includes a 0.27 Bcf/d processing facility and a 104-mile, large-diameter, high-pressure rich gas gathering header pipeline with 0.35 Bcf/d of capacity connecting supplies from the Williston Basin area to high-demand markets.
Natural Gas Pipelines
(Midstream)
2025 Dividends and Discretionary Capital
We expect to declare dividends of $1.17 per share for 2025, a 2% increase from the 2024 declared dividends of $1.15 per share. We expect to invest $3.0 billion in expansion projects, acquisitions, and contributions to joint ventures during 2025.
The expectations for 2025 discussed above involve risks, uncertainties, and assumptions, and are not guarantees of performance. Many of the factors that will determine these expectations are beyond our ability to control or predict, and because of these uncertainties, it is advisable not to put undue reliance on any forward-looking statement.
Results of Operations
Overview
As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA) (as presented in Note 7 "Reportable Segments"), along with the non-GAAP financial measures of Adjusted Net Income Attributable to Common Stock, inthe aggregate and per share, Adjusted Segment EBDA, Adjusted Net Income Attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses and amortization of basis differences related to our joint ventures (previously known as amortization of excess cost of equity investments) (EBITDA), and Net Debt.
Effective January 1, 2025, amortization of basis differences related to our joint ventures (previously known as amortization of excess cost of equity investments) is included within "Earnings from equity investments" in our accompanying consolidated statements of income for the three and nine months ended September 30, 2025 and 2024, and therefore is included within Segment EBDA. As a result, Segment EBDA for the three and nine months ended September 30, 2024 has been adjusted to conform to the current presentation in the following MD&A tables. The adjustments were not material.
GAAP Financial Measures
Our Consolidated Earnings Results for the three and nine months ended September 30, 2025 and 2024 present Net income attributable to Kinder Morgan, Inc., as prepared and presented in accordance with GAAP, and Segment EBDA, which is disclosed in Note 7 "Reportable Segments" pursuant to FASB ASC 280. The composition of Segment EBDA is not addressed nor prescribed by generally accepted accounting principles. Segment EBDA is a useful measure of our operating performance because it measures the operating results of our segments before DD&A and certain expenses that are generally not controllable by our business segment operating managers, such as general and administrative expenses and corporate charges, interest expense, net, and income taxes. Our general and administrative expenses and corporate charges include such items as
unallocated employee benefits, insurance, rentals, unallocated litigation and environmental expenses, and shared corporate services including accounting, information technology, human resources, and legal services.
Non-GAAP Financial Measures
Our non-GAAP financial measures described below should not be considered alternatives to GAAP Net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.
Certain Items
Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in Net income attributable to Kinder Morgan, Inc., but typically either (i) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), or (ii) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation, and casualty losses). (See the tables included in "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.," "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock," and "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA" below). We also include adjustments related to joint ventures (see "-Amounts associated with Joint Ventures" below). The following table summarizes our Certain Items for the three and nine months ended September 30, 2025 and 2024, which are also described in more detail in the footnotes to tables included in "-Segment Earnings Results" below.
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions)
Certain Items
Change in fair value of derivative contracts(a) $ 24 $ (20) $ 13 $ 32
Gain on divestitures(b) - - - (70)
Income tax Certain Items(c) (4) (49) (41) (48)
Other - 1 1 3
Total Certain Items(d)(e) $ 20 $ (68) $ (27) $ (83)
(a)Gains or losses are reflected within non-GAAP financial measures when realized.
(b)2024 amount for the nine-month period includes a gain of $41 million on the divestiture of CO2assets and a gain of $29 million on the divestiture of Oklahoma midstream assets.
(c)Represents the income tax provision on Certain Items plus discrete income tax items. Includes the impact of KMI's income tax provision on Certain Items affecting earnings from equity investments and is separate from the related tax provision recognized at the investees by the joint ventures which are also taxable entities.
(d)2025 amounts for the three and nine-month periods each include the $(1) million reported within "Earnings from equity investments" on the accompanying consolidated statement of income of "Change in fair value of derivative contracts."
(e)Amounts for the periods ending September 30, 2025 and 2024 include $11 million and $4 million, respectively, for the three-month periods and $12 million and $5 million for thenine-month periods, respectively, reported within "Interest, net" on the accompanying consolidated statements of income of "Change in fair value of derivative contracts."
Adjusted Net Income Attributable to Kinder Morgan, Inc.
Adjusted Net Income Attributable to Kinder Morgan, Inc. is calculated by adjusting Net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, investors, and other external users of our financial statements as a supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is Net income attributable to
Kinder Morgan, Inc. See "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc." below.
Adjusted Net Income Attributable to Common Stock and Adjusted EPS
Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, investors, and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. See "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock" below.
Adjusted Segment EBDA
Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors, and other external users of our financial statements additional insight into performance trends across our business segments, our segments' relative contributions to our consolidated performance, and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment's performance. See "-Segment Earnings Results" below.
Adjusted EBITDA
Adjusted EBITDA is calculated by adjusting Net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, amortization of basis differences related to our joint ventures, income tax expense, and interest. We also include amounts from joint ventures for income taxes and DD&A (see "-Amounts associated with Joint Ventures" below). Adjusted EBITDA is used by management, investors, and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the GAAP measure most directly comparable to Adjusted EBITDA is Net income attributable to Kinder Morgan, Inc. See "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA" below.
Amounts associated with Joint Ventures
Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures and consolidated joint ventures utilizing the same recognition and measurement methods used to record "Earnings from equity investments" and "Noncontrolling interests," respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated joint ventures include DD&A, amortization of basis differences, and income tax expense with respect to the joint ventures as those included in the calculation of Adjusted EBITDA for our wholly-owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests. (See "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA" below.) Although these amounts related to our unconsolidated joint ventures are included in the calculation of Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses, or cash flows of such unconsolidated joint ventures.
Net Debt
Net Debt is calculated, based on amounts as of September 30, 2025, by subtracting the following amounts from our debt balance of $32,580 million: (i) cash and cash equivalents of $71 million; (ii) debt fair value adjustments of $196 million; and
(iii) the foreign exchange impact on Euro-denominated bonds of $44 million for which we have entered into currency swaps to convert that debt to U.S. dollars. Net Debt, on its own and in conjunction with our Adjusted EBITDA as part of a ratio of Net Debt-to-Adjusted EBITDA, is a non-GAAP financial measure that is used by management, investors, and other external users of our financial information to evaluate our leverage. Our ratio of Net Debt-to-Adjusted EBITDA is also used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the most comparable measure to Net Debt is total debt.
Consolidated Earnings Results
The following tables summarize the key components of our consolidated earnings results.
Three Months Ended
September 30,
2025 2024 Earnings
increase/(decrease)
(In millions, except percentages)
Revenues $ 4,146 $ 3,699 $ 447 12 %
Operating Costs, Expenses and Other
Costs of sales (exclusive of items shown separately below) (1,395) (1,024) (371) (36) %
Operations and maintenance (786) (790) 4 1 %
DD&A (609) (587) (22) (4) %
General and administrative (183) (176) (7) (4) %
Taxes, other than income taxes (111) (107) (4) (4) %
Other income, net 1 - 1 - %
Total Operating Costs, Expenses and Other (3,083) (2,684) (399) (15) %
Operating Income 1,063 1,015 48 5 %
Other Income (Expense)
Earnings from equity investments 221 199 22 11 %
Interest, net (456) (466) 10 2 %
Other, net 11 16 (5) (31) %
Total Other Expense (224) (251) 27 11 %
Income Before Income Taxes 839 764 75 10 %
Income Tax Expense (185) (113) (72) (64) %
Net Income 654 651 3 - %
Net Income Attributable to Noncontrolling Interests (26) (26) - - %
Net Income Attributable to Kinder Morgan, Inc. $ 628 $ 625 $ 3 - %
Basic and diluted earnings per share $ 0.28 $ 0.28 $ - - %
Basic and diluted weighted average shares outstanding 2,224 2,221 3 - %
Declared dividends per share $ 0.2925 $ 0.2875 $ 0.005 2 %
Nine Months Ended
September 30,
2025 2024 Earnings
increase/(decrease)
(In millions, except percentages)
Revenues $ 12,429 $ 11,113 $ 1,316 12 %
Operating Costs, Expenses and Other
Costs of sales (exclusive of items shown separately below) (4,082) (3,098) (984) (32) %
Operations and maintenance (2,270) (2,211) (59) (3) %
DD&A (1,835) (1,758) (77) (4) %
General and administrative (558) (530) (28) (5) %
Taxes, other than income taxes (334) (327) (7) (2) %
Other income, net 10 87 (77) (89) %
Total Operating Costs, Expenses and Other (9,069) (7,837) (1,232) (16) %
Operating Income 3,360 3,276 84 3 %
Other Income (Expense)
Earnings from equity investments 647 625 22 4 %
Interest, net (1,359) (1,402) 43 3 %
Other, net 39 17 22 129 %
Total Other Expense (673) (760) 87 11 %
Income Before Income Taxes 2,687 2,516 171 7 %
Income Tax Expense (548) (490) (58) (12) %
Net Income 2,139 2,026 113 6 %
Net Income Attributable to Noncontrolling Interests (79) (80) 1 1 %
Net Income Attributable to Kinder Morgan, Inc. $ 2,060 $ 1,946 $ 114 6 %
Basic and diluted earnings per share $ 0.92 $ 0.87 $ 0.05 6 %
Basic and diluted weighted average shares outstanding 2,223 2,220 3 - %
Declared dividends per share $ 0.8775 $ 0.8625 $ 0.015 2 %
Our consolidated revenues primarily consist of services and sales revenue. Our services revenues include fees for transportation and other midstream services that we perform. Fluctuations in our consolidated services revenue largely reflect changes in volumes and/or in the rates we charge. Our consolidated sales revenues include sales of natural gas (includes natural gas and RNG), products (includes NGL, crude oil, CO2, and transmix), and other (includes RINs). Our consolidated sales revenue will fluctuate with commodity prices and volumes, and the costs of sales associated with purchases will usually have a commensurate and offsetting impact, except for the CO2segment, which produces, instead of purchases, the crude oil, CO2, and RINs it sells. Additionally, fluctuations in revenues and costs of sales may be further impacted by gains or losses from derivative contracts that we use to manage our commodity price risk.
Below is a discussion of significant changes in our Consolidated Earnings Results for the comparable three and nine-month periods ended September 30, 2025 and 2024:
Revenues
Revenues increased $447 millionand $1,316 millionfor the three and nine months ended September 30, 2025, respectively, as compared to the respective prior year periods.
The increases were primarily due to (i) increases in natural gas sales of $392 million and $1,173 million, respectively, due to higher natural gas commodity prices and volumes; (ii) increases in services revenues of $112 millionand $341 million, respectively, resulting from higher volumes, primarily driven by increased demand for services and expansion projects placed into service, higher rates, and the Outrigger Energy assets acquired in February 2025; and (iii) an increase in other sales for the nine-month period of $20 million driven by higher RIN sales. Revenues were further increased by $26 million in the nine-month period for the impacts of derivative contracts used to hedge commodity sales. These increases in revenues were partially
offset by lower product sales of $65 millionand $254 million, respectively, driven primarily by lower prices partially offset by higher volumes and in the nine-month period, by asset divestitures in 2024 partially offset by assets acquired in 2024. The increase in sales revenues had corresponding increases in our costs of sales as described below under "Operating Costs, Expenses and Other-Costs of sales."
Operating Costs, Expenses and Other
Costs of sales
Costs of sales increased $371 millionand $984 million for the three and nine months ended September 30, 2025, respectively, as compared to the respective prior year periods. The increases, which are net of the impact of our divested assets for the nine-month period, were primarily due to higher costs of sales for natural gas of $403 million and $1,112 million, respectively, primarily due to higher commodity prices and volumes. These increases were partially offset by lower costs of sales for products of $48 millionand $153 million, respectively, driven by lower commodity prices partially offset by higher volumes.
Operations and Maintenance
Operations and maintenancedecreased $4 millionand increased $59 million for the three and nine months ended September 30, 2025, respectively, as compared to the respective prior year periods.The nine-month period increase was primarily driven by greater activity levels, including from expansions, and inflation, including labor costs.
Other Income, net
Other income, net increased $1 millionand decreased $77 million for the three and nine months ended September 30, 2025, respectively, as compared to the respective prior year periods. The nine-month period decrease was primarily the result of gains on the divestitures of CO2assets and of Oklahoma midstream assets in 2024.
Other Income (Expense)
Interest, net
In the table above, we report our interest expense as "net," meaning that we have subtracted interest income and capitalized interest from our total interest expense to arrive at one interest amount. Interest, net decreased $10 million and $43 million for the three and nine months ended September 30, 2025, respectively, compared to the respective prior year periods. The decreases were primarily due to lower interest rates associated with our fixed-to-variable interest rate swap agreements partially offset by higher interest rates on our long-term debt, and in the nine-month period, higher average total debt balances.
Non-GAAP Financial Measures
Reconciliations from Net Income Attributable to Kinder Morgan, Inc.
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions, except per share amounts)
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.
Net income attributable to Kinder Morgan, Inc. $ 628 $ 625 $ 2,060 $ 1,946
Certain Items(a)
Change in fair value of derivative contracts 24 (20) 13 32
Gain on divestitures - - - (70)
Income tax Certain Items (4) (49) (41) (48)
Other - 1 1 3
Total Certain Items 20 (68) (27) (83)
Adjusted Net Income Attributable to Kinder Morgan, Inc. $ 648 $ 557 $ 2,033 $ 1,863
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock
Net income attributable to Kinder Morgan, Inc. $ 628 $ 625 $ 2,060 $ 1,946
Total Certain Items(b) 20 (68) (27) (83)
Net income allocated to participating securities and other(c) (4) (4) (11) (10)
Adjusted Net Income Attributable to Common Stock $ 644 $ 553 $ 2,022 $ 1,853
Adjusted EPS $ 0.29 $ 0.25 $ 0.91 $ 0.83
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA
Net income attributable to Kinder Morgan, Inc. $ 628 $ 625 $ 2,060 $ 1,946
Total Certain Items(b) 20 (68) (27) (83)
DD&A 609 587 1,835 1,758
Income tax expense(d) 189 162 589 538
Interest, net(e) 445 462 1,347 1,397
Amounts associated with joint ventures
Unconsolidated joint venture DD&A(f) 96 111 296 308
Remove consolidated joint venture partners' DD&A (16) (16) (47) (47)
Unconsolidated joint venture income tax expense(g) 20 17 67 58
Adjusted EBITDA $ 1,991 $ 1,880 $ 6,120 $ 5,875
(a)See table included in "-Overview-Non-GAAP Financial Measures-Certain Items" above.
(b)See "-Non-GAAP Financial Measures-Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc." for a detailed listing.
(c)Other includes Adjusted net income in excess of distributions for participating securities of $1 million for the nine-month period ended September 30, 2024.
(d)To avoid duplication, adjustments for income tax expense for the periodsended September 30, 2025 and 2024 exclude $(4) million and $(49) million for the three-month periods, respectively, and $(41) million and $(48) million for the nine-month periods, respectively, which amounts are already included within "Certain Items." See table included in "-Overview-Non-GAAP Financial Measures-Certain Items" above.
(e)To avoid duplication, adjustments for interest, net for the periods ended September 30, 2025 and 2024 exclude $11 million and $4 million for the three-month periods, respectively, and $12 million and $5 million for the nine-month periods, respectively, which amounts are already included within "Certain Items." See table included in "-Overview-Non-GAAP Financial Measures-Certain Items," above.
(f)Includes amortization of basis differences related to our joint ventures which was previously presented separately as amortization of excess cost of equity investments.
(g)Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL Holdings, and Products (SE) Pipe Line equity investments. The impact of KMI's income tax provision on Certain Items affecting earnings from equity investments is included within "Certain Items" above.
Below is a discussion of significant changes in our Adjusted Net Income Attributable to Kinder Morgan, Inc. and Adjusted EBITDA:
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions)
Adjusted Net Income Attributable to Kinder Morgan, Inc. $ 648 $ 557 $ 2,033 $ 1,863
Adjusted EBITDA 1,991 1,880 6,120 5,875
Change from prior period Increase/(Decrease)
Adjusted Net Income Attributable to Kinder Morgan, Inc. $ 91 $ 170
Adjusted EBITDA $ 111 $ 245
Adjusted Net Income Attributable to Kinder Morgan, Inc. increased $91 millionand $170 million for the three and nine months ended September 30, 2025, respectively, as compared to the respective prior year periods. The increases resulted primarily from favorable earnings in our Natural Gas Pipelines business segment, which was also a primary driver of the increase in Adjusted EBITDA of $111 million and $245 million, respectively.
General and Administrative and Corporate Charges
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions)
General and administrative $ (183) $ (176) $ (558) $ (530)
Corporate charges (1) (5) (6) (15)
Certain Items(a) - 1 1 3
General and administrative and corporate charges $ (184) $ (180) $ (563) $ (542)
Change from prior period Earnings increase/(decrease)
General and administrative $ (7) $ (28)
Corporate charges 4 9
Total $ (3) $ (19)
(a)See "-Overview-Non-GAAP Financial Measures-Certain Items" above.
General and administrative expenses increased $7 million and $28 million, and corporate charges decreased $4 million and $9 millionfor the three and nine months ended September 30, 2025, respectively, when compared with the respective prior year periods. The combined changes primarily include higher benefit-related and labor costs partially offset by lower pension costs.
Segment Earnings Results
Natural Gas Pipelines (including reconciliation of Segment EBDA to Adjusted Segment EBDA)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions, except operating statistics)
Revenues $ 2,676 $ 2,176 $ 7,966 $ 6,505
Costs of sales (1,089) (673) (3,124) (1,971)
Other operating expenses(a)
(414) (399) (1,184) (1,124)
Other income 1 - 8 39
Earnings from equity investments 212 174 593 556
Other, net 5 7 21 5
Segment EBDA 1,391 1,285 4,280 4,010
Certain Items:
Change in fair value of derivative contracts 12 (14) 3 29
Gain on divestiture - - - (29)
Certain Items(b)
12 (14) 3 -
Adjusted Segment EBDA $ 1,403 $ 1,271 $ 4,283 $ 4,010
Change from prior period Increase/(Decrease)
Segment EBDA $ 106 $ 270
Adjusted Segment EBDA $ 132 $ 273
Volumetric data(c)
Transport volumes (BBtu/d) 47,461 44,827 46,013 44,166
Sales volumes (BBtu/d) 3,712 2,694 3,051 2,584
Gathering volumes (BBtu/d) 4,380 4,005 4,101 4,130
NGLs (MBbl/d) 39 34 37 38
(a)Operating expenses include operations and maintenance expenses and taxes, other than income taxes.
(b)See table included in "-Overview-Non-GAAP Financial Measures-Certain Items" above. For the periods ending September 30, 2025 and 2024 Certain Items of (i) $13 million and $(14) million for the three-month periods, respectively, and $4 million and $0 for the nine-month periods, respectively, are associated with our Midstream business and (ii) $(1) million for each of the 2025 three and nine-month periods is associated with our East business. See "-Overview-Non-GAAP Financial Measures-Certain Items" above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.
(c)Joint venture throughput is reported at our ownership share. Volumes for acquired assets are included for all periods presented. However, EBDA contributions from acquisitions are included only for the periods subsequent to their acquisition. Volumes for assets sold are excluded for all periods presented.
Below are the changes in Natural Gas Pipelines Segment EBDA:
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions)
East $ 687 $ 627 $ 2,112 $ 1,985
Midstream 483 435 1,452 1,324
West 221 223 716 701
Total Natural Gas Pipelines $ 1,391 $ 1,285 $ 4,280 $ 4,010
Change from prior period Increase/(Decrease)
East $ 60 $ 127
Midstream $ 48 $ 128
West $ (2) $ 15
The changes in Natural Gas Pipelines Segment EBDA in the comparable three and nine-month periods ended September 30, 2025 and 2024 are explained by the following discussion:
•The $60 million (10%) and $127 million (6%) increases, respectively, in East were primarily driven by, on TGP, increased rates related to weather-driven demand for services as well as expansion projects that went into service and higher equity earnings from Citrus that primarily resulted from lower DD&A. The increase in the nine-month period was further driven by higher equity earnings from Midcontinent Express Pipeline LLC resulting from increased rates partially offset by (i) an expired customer agreement on our Stagecoach assets; (ii) lower equity earnings from SNG primarily driven by higher legal and operating costs; and (iii) higher pipeline maintenance costs on TGP.
•The $48million (11%) and $128 million (10%) increases, respectively, in Midstream were primarily driven by (i) increased demand for our services on our Texas intrastate systems; (ii) contributions from the acquired Outrigger Energy assets on our Hiland Midstream assets; and (iii) higher equity earnings from Kinder Morgan Utopia Holdco LLC resulting primarily from increased volumes. The increase in the nine-month period was further impacted by higher gathering rates on KinderHawk Field Services LLC. Overall, Midstream's revenue changes are partially offset by corresponding changes in costs of sales.
In addition, Midstream was impacted by non-cash mark-to-market derivative contracts used to hedge forecasted commodity sales and purchases, primarily increasing costs of sales in the three-month period, and increasing revenues in the nine-month period, offset by a gain on sale of our Oklahoma assets in the nine-month 2024 period, all of which we treated as Certain Items.
•The $15million (4%) nine-month period increase in West was driven by a new service provided by Cheyenne Plains Gas Pipeline Company, L.L.C. to its customers in 2025.
Products Pipelines (including reconciliation of Segment EBDA to Adjusted Segment EBDA)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions, except operating statistics)
Revenues $ 677 $ 711 $ 2,031 $ 2,215
Costs of sales (281) (325) (866) (1,047)
Other operating expenses(a)
(121) (125) (360) (346)
Other income - - 1 -
Earnings from equity investments 13 16 44 43
Segment EBDA 288 277 850 865
Certain Items:
Change in fair value of derivative contracts - (1) 1 -
Certain Items(b)
- (1) 1 -
Adjusted Segment EBDA $ 288 $ 276 $ 851 $ 865
Change from prior period Increase/(Decrease)
Segment EBDA $ 11 $ (15)
Adjusted Segment EBDA $ 12 $ (14)
Volumetric data(c)
Gasoline(d)
978 1,010 976 980
Diesel fuel 373 363 359 351
Jet fuel 301 302 309 298
Total refined product volumes 1,652 1,675 1,644 1,629
Crude and condensate 459 472 479 474
Total delivery volumes (MBbl/d) 2,111 2,147 2,123 2,103
(a)Operating expenses include operations and maintenance expenses and taxes, other than income taxes.
(b)See table included in "-Overview-Non-GAAP Financial Measures-Certain Items" above. The 2025 and 2024 Certain Items areassociated with our Southeast Refined Products business. See "-Overview-Non-GAAP Financial Measures-Certain Items" above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.
(c)Joint venture throughput is reported at our ownership share.
(d)Volumes include ethanol pipeline volumes.
Below are the changes in Products Pipelines Segment EBDA:
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions)
Southeast Refined Products $ 71 $ 60 $ 220 $ 209
West Coast Refined Products 158 153 462 443
Crude and Condensate 59 64 168 213
Total Products Pipelines $ 288 $ 277 $ 850 $ 865
Change from prior period Increase (Decrease)
Southeast Refined Products $ 11 $ 11
West Coast Refined Products $ 5 $ 19
Crude and Condensate $ (5) $ (45)
The changes in Products Pipelines Segment EBDA in the comparable three and nine-month periods ended September 30, 2025 and 2024 are explained by the following discussion:
•The $11million (18%) and $11million (5%) increases, respectively, in Southeast Refined Products were primarily driven by lower prices on costs of sales at our Transmix processing operations.
•The $5million (3%) and $19million (4%) increases, respectively, in West Coast Refined Products resulted from, on our Pacific operations, higher transportation rates and, in the nine-month period, higher terminal delivery fees partially offset by unfavorable changes in product gains. The increase in the nine-month period was further impacted by higher rates at our West Coast Terminals.
•The $5 million (8%) and $45million (21%) decreases, respectively, in Crude and Condensate were driven by the expiration of legacy crude contracts in advance of the Double H pipeline conversion to NGL service partially offset, in the three-month period, by higher gathering volumes on our Bakken Crude assets. The decrease in the nine-month period was also driven by a planned ten-year turnaround in the first quarter 2025 at our KM Condensate Processing facility and lower margin from our Crude and Condensate business resulting primarily from decreased spreads.
Terminals (including reconciliation of Segment EBDA to Adjusted Segment EBDA)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions, except operating statistics)
Revenues $ 518 $ 498 $ 1,569 $ 1,503
Costs of sales (9) (8) (38) (30)
Other operating expenses(a) (225) (230) (678) (677)
Other income - - - 7
(Loss) earnings from equity investments (10) 2 (6) 6
Other, net - 6 2 9
Segment EBDA $ 274 $ 268 $ 849 $ 818
Certain Items:
Change in fair value of derivative contracts - (1) - (1)
Certain Items(b) - (1) - (1)
Adjusted Segment EBDA $ 274 $ 267 $ 849 $ 817
Change from prior period Increase/(Decrease)
Segment EBDA $ 6 $ 31
Adjusted Segment EBDA 7 32
Volumetric data(c)
Liquids leasable capacity (MMBbl) 78.7 78.6 78.7 78.6
Liquids utilization %(d) 94.6 % 94.9 % 94.4 % 94.3 %
Bulk transload tonnage (MMtons) 12.3 13.4 37.6 41.1
(a)Operating expenses include operations and maintenance expenses and taxes, other than income taxes.
(b)See table included in "-Overview-Non-GAAP Financial Measures-Certain Items" above. The 2024 Certain Items areassociated with our Liquids business. See "-Overview-Non-GAAP Financial Measures-Certain Items" above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.
(c)Volumes for facilities divested, idled and/or held for sale are excluded for all periods presented.
(d)The ratio of our tankage capacity in service to liquids leasable capacity.
For purposes of the following tables and related discussions, the results of operations of our terminals held for sale or divested, including any associated gain or loss on sale, are adjusted for all periods presented from the historical business grouping and included within the Other group.
Below are the changes in Terminals Segment EBDA:
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions)
Jones Act tankers $ 60 $ 48 $ 179 $ 139
Liquids 156 151 484 474
Bulk 58 67 186 201
Other - 2 - 4
Total Terminals $ 274 $ 268 $ 849 $ 818
Change from prior period Increase/(Decrease)
Jones Act tankers $ 12 $ 40
Liquids $ 5 $ 10
Bulk $ (9) $ (15)
Other $ (2) $ (4)
The changes in Terminals Segment EBDA in the comparable three and nine-month periods ended September 30, 2025 and 2024 are explained by the following discussion:
•The $12million (25%) and $40million (29%) increases, respectively, in Jones Act tankers were primarily due to higher average charter rates.
•The $5million (3%) and $10 million (2%) increases, respectively, in Liquids were driven by (i) higher rates primarily at our Houston Ship Channel facilities; (ii) contributions from expansion projects; and (iii) in the three-month period, lower operating costs, partially offset by lower equity earnings resulting from an impairment of an equity investment in the 2025 three and nine-month periods.
•The $9million (13%) and $15million (7%) decreases, respectively, in Bulk were primarily driven by the impact of the 2025 closure of LyondellBasell's Houston refinery on our petroleum coke handling operations. The decrease in the nine-month period was further driven by decreased volumes and handling activities for coal offset by lower demurrage costs at our International Marine Terminal.
CO2 (including reconciliation of Segment EBDA to Adjusted Segment EBDA)
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions, except operating statistics)
Revenues $ 282 $ 319 $ 884 $ 905
Costs of sales (22) (21) (70) (61)
Other operating expenses(a)
(131) (137) (365) (377)
Other income - - 1 41
Earnings from equity investments 6 7 16 20
Segment EBDA 135 168 466 528
Certain Items:
Change in fair value of derivative contracts 1 (8) (3) (1)
Gain on divestitures
- - - (41)
Certain Items(b)
1 (8) (3) (42)
Adjusted Segment EBDA $ 136 $ 160 $ 463 $ 486
Change from prior period Increase/(Decrease)
Segment EBDA $ (33) $ (62)
Adjusted Segment EBDA $ (24) $ (23)
Volumetric data(c)
SACROC oil production
18.01 19.02 18.56 19.01
Yates oil production 5.90 5.90 5.95 6.08
Other 1.13 1.16 1.11 1.20
Total oil production, net (MBbl/d)(d)
25.04 26.08 25.62 26.29
NGL sales volumes, net (MBbl/d)(d)
9.03 8.69 9.11 8.49
CO2sales volumes, net (Bcf/d)
0.274 0.319 0.292 0.323
RNG sales volumes (BBtu/d) 11 10 10 8
Realized weighted average oil price ($ per Bbl) $ 67.74 $ 68.42 $ 67.91 $ 68.86
Realized weighted average NGL price ($ per Bbl) $ 31.09 $ 32.38 $ 32.85 $ 29.36
(a)Operating expenses include operations and maintenance expenses and taxes, other than income taxes.
(b)See table included in "-Overview-Non-GAAP Financial Measures-Certain Items" above. The 2025 and 2024 Certain Items are associated with our Oil and Gas Producing activities. See "-Overview-Non-GAAP Financial Measures-Certain Items" above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.
(c)Volumes for acquired assets are included for all periods presented, however, EBDA contributions from acquisitions are included only for the periods subsequent to their acquisition. Volumes for assets sold are excluded for all periods presented.
(d)Net of royalties and outside working interests.
Below are the changes in CO2Segment EBDA:
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025 2024 2025 2024
(In millions)
Source and Transportation activities $ 36 $ 49 $ 121 $ 143
Oil and Gas Producing activities 92 95 314 347
Subtotal 128 144 435 490
Energy Transition Ventures 7 24 31 38
Total CO2
$ 135 $ 168 $ 466 $ 528
Change from prior period Increase/(Decrease)
Source and Transportation activities $ (13) $ (22)
Oil and Gas Producing activities $ (3) $ (33)
Energy Transition Ventures $ (17) $ (7)
The changes in CO2Segment EBDA in the comparable three and nine-month periods ended September 30, 2025 and 2024 are explained by the following discussion:
•The $13 million (27%) and $22 million (15%) decreases, respectively, in Source and Transportation activities were driven by lower CO2volumes. The nine-month period decrease was further driven by lower realized CO2sales prices partially offset by higher volumes on our Wink pipeline.
•The $3 million (3%) and $33 million (10%) decreases, respectively, in Oil and Gas Producing activities were driven by non-cash mark-to-market sales derivative hedge contracts in the three-month period, and in the nine-month period, a $41 million gain on sale of oil and gas producing fields in the 2024 period, all of which we treated as Certain Items.
In addition, Oil and Gas Producing activities were favorably impacted by lower power costs partially offset by lower crude oil volumes. The nine-month period was further impacted by assets acquired in June 2024 and higher realized NGL prices and volumes partially offset by assets divested in June 2024.
•The $17 million (71%) and $7 million (18%) decreases, respectively, in Energy Transition Ventures were primarily due to higher operating costs and lower RIN sales prices. The nine-month period decrease was partially offset by higher RIN sales volumes.
We believe that our existing hedge contracts in place within our CO2business segment substantially mitigate commodity price sensitivities in the near-term and to a lesser extent over the following few years from price exposure. Below is a summary of our CO2business segment hedges outstanding as of September 30, 2025:
Remaining 2025 2026 2027 2028
Crude Oil(a)
Price ($ per Bbl) $ 66.98 $ 64.63 $ 65.22 $ 64.51
Volume (MBbl/d) 23.15 20.20 10.00 4.00
NGLs
Price ($ per Bbl) $ 47.01 $ 44.64
Volume (MBbl/d) 4.77 1.87
(a)Includes WTIhedges.
Liquidity and Capital Resources
General
As of September 30, 2025, we had $71 million of "Cash and cash equivalents," a decrease of $17 million from December 31, 2024. Additionally, as of September 30, 2025, we had borrowing capacity of approximately $2.9 billion under our credit facility (discussed below in "-Short-term Liquidity"). As discussed further below, we believe our cash flows from operating activities, cash position, and remaining borrowing capacity on our credit facility is more than adequate to allow us to manage our day-to-day cash requirements and anticipated obligations.
We have consistently generated substantial cash flows from operations, providing a source of funds of $4,225 million and $4,125 million in the first nine months of 2025 and 2024, respectively. The period-to-period increase is discussed below in "-Cash Flows-Operating Activities." We primarily rely on cash provided by operations to fund our operations as well as our debt service, sustaining capital expenditures, dividend payments, and our growth capital expenditures; however, we may access the debt capital markets from time to time to refinance our maturing long-term debt and finance incremental investments, if any. From time to time, short-term borrowings are used to fund working capital and finance incremental capital investments, if any. Incremental capital investments initially funded through short-term borrowings may periodically be replaced with long-term financing and/or paid down using retained cash from operations.
We use interest rate swap agreements to convert a portion of the underlying cash flows related to our long-term fixed-rate debt securities (senior notes) into variable-rate debt in order to achieve our desired mix of fixed and variable rate debt, as detailed below:
September 30, 2025 December 31, 2024
(In millions)
Variable rate debt(a)
$ 568 $ 371
Notional principal amount of fixed-to-variable interest rate swap agreements 3,500 4,750
Notional principal amount of variable-to-fixed interest rate swap agreements(b)
(1,500) (1,500)
Debt balances subject to variable interest rates
$ 2,568 $ 3,621
(a)Includes $568 million and $331 million at September 30, 2025 and December 31, 2024, respectively, of commercial paper notes.
(b)Consist of interest rate swap agreements set to expire December 2025.
Our board of directors declared a quarterly dividend of $0.2925 per share for the third quarter of 2025, a 2% increase over the dividend declared for the third quarter of 2024.
In February 2025 and June 2025, Standard and Poor's and Moody's Investor Services, respectively, upgraded our rating outlook to positive. In August 2025, Fitch Ratings, Inc. upgraded our senior unsecured rating from BBB to BBB+.
Short-term Liquidity
As of September 30, 2025, our principal sources of short-term liquidity are (i) cash from operations; and (ii) our $3.5 billion credit facility with an available capacity of approximately $2.9 billion and an associated $3.5 billion commercial paper program. The loan commitments under our credit facility can be used for working capital and other general corporate purposes and as a backup to our commercial paper program. Commercial paper borrowings and letters of credit reduce borrowings allowed under our credit facility. We provide for liquidity by maintaining a sizable amount of excess borrowing capacity under our credit facility and, as previously discussed, have consistently generated strong cash flows from operations.
As of September 30, 2025, our $1,081 million of short-term debt consisted primarily of commercial paper borrowings and senior notes that mature in the next twelve months. We intend to fund our debt as it becomes due, primarily through credit facility borrowings, commercial paper borrowings, cash flows from operations and/or issuing new long-term debt. Our short-term debt as of December 31, 2024 was $2,009 million.
We had working capital (defined as current assets less current liabilities) deficits of $1,420 million and $2,580 million as of September 30, 2025 and December 31, 2024, respectively. The overall $1,160 million favorable change from year-end 2024 was primarily due to (i) a $1,125 million decrease in senior notes that mature in the next twelve months resulting from $1,500 million of senior notes that matured in June 2025; and (ii) a $181 million decrease in accrued interest, partially offset by a $237 million increase in commercial paper borrowings partly used to fund our Outrigger Energy acquisition. Generally, our working capital varies due to factors such as the timing of scheduled debt payments, timing differences in the collection and
payment of receivables and payables, the change in fair value of our derivative contracts, and changes in our cash and cash equivalents as a result of excess cash from operations after payments for investing and financing activities.
Capital Expenditures
We account for our capital expenditures in accordance with GAAP. Additionally, we distinguish between capital expenditures as follows:
Type of Expenditure Physical Determination of Expenditure
Sustaining capital expenditures
•Investments to maintain the operational integrity and extend the useful life of our assets
Expansion capital expenditures (discretionary capital expenditures)
•Investments to expand throughput or capacity from that which existed immediately prior to the making or acquisition of additions or improvements
Budgeting of maintenance capital expenditures, which we refer to as sustaining capital expenditures, is done annually on a bottom-up basis. For each of our assets, we budget for and make those sustaining capital expenditures that are necessary to maintain safe and efficient operations, meet customer needs, and comply with our operating policies and applicable law. We may budget for and make additional sustaining capital expenditures that we expect to produce economic benefits such as increasing efficiency and/or lowering future expenses. Budgeting and approval of expansion capital expenditures generally occurs periodically throughout the year on a project-by-project basis in response to specific investment opportunities identified by our business segments from which we generally expect to receive sufficient returns to justify the expenditures. Assets comprising expansion capital projects could result in additional sustaining capital expenditures over time. The need for sustaining capital expenditures in respect of newly constructed assets tends to be minimal but tends to increase over time as such assets age and experience wear and tear. Regardless of whether assets result from sustaining or expansion capital expenditures, once completed, the addition of such assets to our depreciable asset base will impact our calculation of depreciation, depletion and amortization over the remaining useful lives of the impacted or resulting assets.
Generally, the determination of whether a capital expenditure is classified as sustaining or as expansion capital expenditures is made on a project level. The classification of our capital expenditures as expansion capital expenditures or as sustaining capital expenditures is made consistent with our accounting policies and is generally a straightforward process, but in certain circumstances can be a matter of management judgment and discretion.
Our capital expenditures for the nine months ended September 30, 2025, and the amount we expect to spend for the remainder of 2025 to sustain our assets and expand our business are as follows:
Nine Months Ended
September 30, 2025
2025 Remaining
Expected 2025
(In millions)
Capital expenditures:
Sustaining capital expenditures $ 678 $ 260 $ 938
Expansion capital expenditures 1,460 722 2,182
Accrued capital expenditures, contractor retainage, and other 68 - -
Capital expenditures $ 2,206 $ 982 $ 3,120
Add:
Sustaining capital expenditures of unconsolidated joint ventures(a) $ 131 $ 53 $ 184
Investments in unconsolidated joint ventures(b) 150 16 166
Less: Consolidated joint venture partners' sustaining capital expenditures (6) (4) (10)
Less: Consolidated joint venture partners' expansion capital expenditures (8) - (8)
Less: Insurance reimbursement related to a sustaining capital expenditure (14) - (14)
Acquisition 648 - 648
Accrued capital expenditures, contractor retainage, and other (68) - -
Total capital investments $ 3,039 $ 1,047 $ 4,086
(a)Sustaining capital expenditures by our joint ventures generally do not require cash outlays by us.
(b)Reflects cash contributions to unconsolidated joint ventures. Also includes contributions to an unconsolidated joint venture that are netted within the amount the joint venture declares as a distribution to us.
Our capital investments consist of the following:
Nine Months Ended
September 30, 2025
2025 Remaining
Expected 2025
(In millions)
Sustaining capital investments
Capital expenditures for property, plant and equipment $ 678 $ 260 $ 938
Sustaining capital expenditures of unconsolidated joint ventures(a) 131 53 184
Less: Consolidated joint venture partners' sustaining capital expenditures (6) (4) (10)
Less: Insurance reimbursement related to a sustaining capital expenditure (14) - (14)
Total sustaining capital investments 789 309 1,098
Expansion capital investments
Capital expenditures for property, plant and equipment 1,460 722 2,182
Investments in unconsolidated joint ventures(b) 150 16 166
Less: Consolidated joint venture partners' expansion capital expenditures (8) - (8)
Acquisition 648 - 648
Total expansion capital investments 2,250 738 2,988
Total capital investments $ 3,039 $ 1,047 $ 4,086
(a)Sustaining capital expenditures by our joint ventures generally do not require cash outlays by us.
(b)Reflects cash contributions to unconsolidated joint ventures. Also includes contributions to an unconsolidated joint venture that are netted within the amount the joint venture declares as a distribution to us.
Off Balance Sheet Arrangements
There have been no material changes in our obligations with respect to other entities that are not consolidated in our financial statements that would affect the disclosures presented as of December 31, 2024 in our 2024 Form 10-K.
Commitments for the purchase of property, plant and equipment as of September 30, 2025 and December 31, 2024 were $1,173 million and $809 million, respectively. The increase of $364 million was primarily driven by an increase of capital commitments related to our Natural Gas Pipelines business segment.
Cash Flows
The following table summarizes our net cash flows provided by (used in) operating, investing, and financing activities between 2025 and 2024:
Nine Months Ended
September 30,
2025 2024 Changes
(In millions)
Net Cash Provided by (Used in)
Operating activities $ 4,225 $ 4,125 $ 100
Investing activities (2,702) (1,858) (844)
Financing activities (1,604) (2,230) 626
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Deposits $ (81) $ 37 $ (118)
Operating Activities
Net cash provided by operating activities was higher for the comparable nine-month periods ended September 30, 2025 and 2024 driven by greater contributions from our Natural Gas Pipelines business segment.
Investing Activities
$844 million more cash used in investing activities in the comparable nine-month periods ended September 30, 2025 and 2024 is explained by the following discussion:
•$648 million in cash used for the Outrigger Energy acquisition in the 2025 period; and
•a $349 million increase in capital expenditures primarily driven by expansion projects in our Natural Gas Pipelines, CO2, and Products Pipelines business segments, partially offset by a decrease in our Terminals business segment; partially offset by
•a $152 million increase in distributions from equity investments primarily driven by our investment in SNG resulting from the receipt of our proportional share of debt refinancing.
Financing Activities
$626 million less cash used in financing activities in the comparable nine-month periods ended September 30, 2025 and 2024 primarily due to debt raised for our Outrigger Energy acquisition in 2025.
Dividends
We expect to declare dividends of $1.17 per share on our stock for 2025. The table below reflects our 2025 dividends declared:
Three months ended Total quarterly dividend per share for the period Date of declaration Date of record Date of dividend
March 31, 2025 $ 0.2925 April 16, 2025 April 30, 2025 May 15, 2025
June 30, 2025 0.2925 July 16, 2025 July 31, 2025 August 15, 2025
September 30, 2025 0.2925 October 22, 2025 November 3, 2025 November 17, 2025
The actual amount of dividends to be paid on our capital stock will depend on many factors, including our financial condition and results of operations, liquidity requirements, business prospects, capital requirements, legal, regulatory and contractual constraints, tax laws, Delaware laws, and other factors. See Item 1A. "Risk Factors-Risks Related to Ownership of Our Capital Stock-The guidance we provide for our anticipated dividends is based on estimates. Circumstances may arise that lead to conflicts between using funds to pay anticipated dividends or to invest in our business." of our 2024 Form 10-K. All of these matters will be taken into consideration by our board of directors when declaring dividends.
Our dividends are not cumulative. Consequently, if dividends on our stock are not paid at the intended levels, our stockholders are not entitled to receive those payments in the future. Our dividends generally will be paid on or about the 15th day of each February, May, August, and November.
Summarized Combined Financial Information for Guarantee of Securities of Subsidiaries
KMI and certain subsidiaries (Subsidiary Issuers) are issuers of certain debt securities. KMI and substantially all of KMI's wholly owned domestic subsidiaries (Subsidiary Guarantors), are parties to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement. Accordingly, with the exception of certain subsidiaries identified as subsidiary non-guarantors (Subsidiary Non-Guarantors), the parent issuer, Subsidiary Issuers, and Subsidiary Guarantors (the "Obligated Group") are all guarantors of each series of our guaranteed debt (Guaranteed Notes). As a result of the cross guarantee agreement, a holder of any of the Guaranteed Notes issued by KMI or a Subsidiary Issuer is in the same position with respect to the net assets and income of KMI and the Subsidiary Issuers and Guarantors. The only amounts that are not available to the holders of each of the Guaranteed Notes to satisfy the repayment of such securities are the net assets and income of the Subsidiary Non-Guarantors.
In lieu of providing separate financial statements for the Obligated Group, we have presented the accompanying supplemental summarized combined income statement and balance sheet information for the Obligated Group based on Rule 13-01 of the SEC's Regulation S-X. Also, see Exhibit 10.1 to this report "Cross Guarantee Agreement, dated as of November 26, 2014, among KMI and certain of its subsidiaries, with schedules updated as of September 30, 2025."
All significant intercompany items among the Obligated Group have been eliminated in the supplemental summarized combined financial information. The Obligated Group's investment balances in Subsidiary Non-Guarantors have been excluded from the supplemental summarized combined financial information. Significant intercompany balances and activity for the Obligated Group with other related parties, including Subsidiary Non-Guarantors (referred to as "affiliates"), are presented separately in the accompanying supplemental summarized combined financial information.
Excluding fair value adjustments, as of September 30, 2025 and December 31, 2024, the Obligated Group had $31,707 million and $31,052 million, respectively, of Guaranteed Notes outstanding.
Summarized combined balance sheet and income statement information for the Obligated Group follows:
Summarized Combined Balance Sheet Information September 30, 2025 December 31, 2024
(In millions)
Current assets $ 2,146 $ 2,216
Current assets - affiliates 753 735
Noncurrent assets 64,353 63,267
Noncurrent assets - affiliates 781 813
Total Assets $ 68,033 $ 67,031
Current liabilities $ 3,534 $ 4,737
Current liabilities - affiliates 755 758
Noncurrent liabilities 36,034 34,052
Noncurrent liabilities - affiliates 1,760 1,561
Total Liabilities 42,083 41,108
Kinder Morgan, Inc.'s stockholders' equity 25,950 25,923
Total Liabilities and Stockholders' Equity $ 68,033 $ 67,031
Summarized Combined Income Statement Information Three Months Ended
September 30, 2025 		Nine Months Ended
September 30, 2025
(In millions)
Revenues $ 3,784 $ 11,377
Operating income 923 2,955
Net income 505 1,708
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