Kinder Morgan (KMI) beat market expectations in its second-quarter earnings released after market close on July 16.
The midstream company reported $4.04 billion in revenue for the second quarter, exceeding market estimates by $210 million.
Kinder Morgan expects to see demand for natural gas rise by 20% by 2030. Increasing LNG production will be the primary driver, the company announced in its report.
The power generation sector also continues to play a larger role in KMI’s construction projects.
Kinder Morgan CEO Kim Dang (Source: Kinder Morgan)
During the quarter, KMI added $1.3 billion to its project backlog, about 50% of which is tied to projects supporting power generation. The company is pursuing more than 5 Bcf/d of opportunities to serve the natural gas power generation sector.
KMI CEO Kim Dang said the proportion going to power projects makes sense, considering the widespread growth in projects across the U.S.
“Obviously, the biggest driver of demand growth has been projected to be LNG,” Dang said. “But the breadth and the scope of the power demand is enormous. We’re seeing power demand in Arkansas, Louisiana, Georgia, South Carolina, Arizona, South Dakota, Texas.”
During the second quarter, KMI placed $750 million of projects in service. Natural gas volumes on the company’s network rose by 3%, compared to second-quarter 2024, with demand from new LNG export facilities on the Gulf Coast driving the increase.
“The positive natural gas story has legs and will continue for decades to come,” Executive Chairman Rich Kinder said during his opening statement. Kinder said he sees continued global development of LNG in large and small markets.
Kinder Morgan’s non-GAAP EPS of $0.28 was in line with analysts’ expectations.
The company’s board approved a cash dividend of $0.2925 per share for the second quarter, payable on Aug. 15. The dividend was a 2% increase over the same period in 2024.